Mississippi Video Service Act; enact.

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To: Energy
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026

By: Senator(s) Carter

SENATE BILL NO. 2781

AN ACT TO CREATE NEW SECTION 77-21-1, MISSISSIPPI CODE OF 1
1972, TO CREATE THE MISSISSIPPI VIDEO SERVICE ACT; TO CREATE NEW 2
SECTION 77-21-3, MISSISSIPPI CODE OF 1972, TO DEFINE TERMS; TO 3
CREATE NEW SECTION 77-21-5, MISSISSIPPI CODE OF 1972, TO PROVIDE 4
FOR FRANCHISING AUTHORITY AND APPLICATION FOR CERTIFICATE OF 5
FRANCHISE AUTHORITY; TO PROVIDE FOR MODIFICATION OF SERVICE AREAS; 6
TO PRESCRIBE TERM LENGTH OF A CERTIFICATE OF FRANCHISE AUTHORITY; 7
TO PROVIDE FOR TERMINATION OF A CERTIFICATE OF FRANCHISE 8
AUTHORITY; TO CREATE NEW SECTION 77-21-7, MISSISSIPPI CODE OF 9
1972, TO CREATE FEES FOR A CERTIFICATE OF FRANCHISE AUTHORITY; TO 10
CREATE NEW SECTION 77-21-9, MISSISSIPPI CODE OF 1972, TO AUTHORIZE 11
HOLDERS OF CERTIFICATES OF FRANCHISE AUTHORITY TO USE PUBLIC 12
RIGHTS-OF-WAY; TO PRESCRIBE A VIDEO SERVICE PROVIDER FEE; TO 13
PROVIDE FOR PAYMENT OF SUCH FEE; TO STIPULATE THAT THE VIDEO 14
SERVICE PROVIDER FEE IS A PERCENTAGE OF GROSS REVENUE DETERMINED 15
BY A POLITICAL SUBDIVISION; TO PROVIDE FOR ESTABLISHING, 16
INCREASING OR LOWERING A VIDEO SERVICE PROVIDER FEE; TO AUTHORIZE 17
A POLITICAL SUBDIVISION TO CONDUCT AUDITS OF VIDEO SERVICE 18
PROVIDERS TO ENSURE PROPER AND ACCURATE PAYMENT; TO REQUIRE VIDEO 19
SERVICE PROVIDERS TO KEEP BUSINESS RECORDS SHOWING GROSS REVENUE; 20
TO PROVIDE FOR ANNEXATION OF LANDS; TO CREATE NEW SECTION, 21
77-21-13, MISSISSIPPI CODE OF 1972, TO PROHIBIT CERTAIN ACTIVITIES 22
AND PROVIDE REMEDIES FOR NONCOMPLIANCE; TO CREATE NEW SECTION 23
77-21-15, MISSISSIPPI CODE OF 1972, TO ESTABLISH CUSTOMER SERVICE 24
STANDARDS; TO CREATE NEW SECTION 77-21-17, MISSISSIPPI CODE OF 25
1972, TO PROVIDE FOR DESIGNATION AND USE OF CHANNEL CAPACITY FOR 26
PUBLIC, EDUCATIONAL OR GOVERNMENTAL USE; TO CREATE NEW SECTION 27
77-21-19, MISSISSIPPI CODE OF 1972, TO PROVIDE FOR THE 28
APPLICABILITY OF OTHER LAWS; AND FOR RELATED PURPOSES. 29
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 30
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SECTION 1. The following shall be codified as Section 31
77-21-1, Mississippi Code of 1972: 32
77-21-1. This act shall be known and may be cited as the 33
"Mississippi Video Service Act." 34
SECTION 2. The following shall be codified as Section 35
77-21-3, Mississippi Code of 1972: 36
77-21-3. As used in this act, the following terms shall have 37
the meanings ascribed herein, unless context clearly requires 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" has the same definition as provided 49
in 47 USC § 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
(e) (i) "Franchise" has the same definition as 54
provided in 47 USC § 522, as it existed on January 1, 2026. 55
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(ii) A certificate of franchise issued under 56
Section 77-21-5 shall constitute a franchise for the purpose of 47 57
USC § 542, as it existed on January 1, 2026. 58
(iii) "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 city council or the 66
county quorum court of a political subdivision. 67
(h) "Incumbent video service provider" means a person 68
who 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
(iii) Any other person who provides video service 78
after July 1, 2026, that is not an incumbent video service 79
provider. 80
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(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) "Subscriber" means a person in this state who buys 95
video service. "Subscriber" does not include a person who buys 96
video service for resale and who, on resale, is required to pay a 97
video service provider fee under this act or under the terms of a 98
franchise with a political subdivision. 99
(o) (i) "Video service" means the delivery of video 100
programming by a video service provider to subscribers in which: 101
1. The video programming is generally 102
considered comparable to video programming delivered to viewers by 103
a television broadcast station, cable service, or digital 104
television service, without regard to the technology used to 105
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deliver the video service, including internet protocol 106
technologies; and 107
2. The service is provided primarily through 108
equipment or facilities owned, controlled, constructed, or 109
operated by the video service provider and located in whole or in 110
part in, on, under, or over any public right-of-way. 111
(ii) "Video service" includes cable service and 112
video service delivered by a community antenna television system. 113
(iii) "Video service" excludes video programming: 114
1. Provided to persons: 115
a. In their capacity as subscribers to 116
commercial mobile service as defined in 47 USC § 332(d), as it 117
existed on January 1, 2026; or 118
b. By means of direct-to-home satellite 119
services as defined in 47 USC § 303(v), as it existed on January 120
1, 2026, that are transmitted from a satellite directly to a 121
customer's premises without using or accessing any portion of the 122
public right-of-way. 123
2. Accessed via a service that enables end 124
users to access content, information, electronic mail, or other 125
services offered over the public internet, including streaming 126
content. 127
(p) "Video service provider" means a provider of video 128
service, including, without limitation, a cable service provider, 129
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an incumbent video service provider, and a nonincumbent video 130
service provider. 131
(q) "Video service provider fee" means the amount paid 132
by a video service provider to a political subdivision under 133
Section 77-21-11. 134
SECTION 3. The following shall be codified as Section 135
77-21-5, Mississippi Code of 1972: 136
77-21-5. (1) After June 30, 2026: 137
(a) A person shall not act as a video service provider 138
within the state unless the person: 139
(i) Is providing video service under a franchise 140
from the political subdivision in which service is to be provided 141
which is in effect on June 30, 2026, or a subsequent renewal of 142
the franchise; 143
(ii) Elects to: 144
1. Negotiate a franchise with a political 145
subdivision that establishes the terms and conditions applicable 146
to that person to provide video service within the jurisdictional 147
boundaries of the political subdivision and has been issued a 148
franchise from the political subdivision for such a purpose; or 149
2. Adopt the terms and conditions of an 150
existing franchise issued by a political subdivision to an 151
incumbent video service provider providing video service within 152
the same service area and that has been issued a franchise from 153
the political subdivision authorizing the video service provider 154
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to provide video services within the political subdivision under 155
the same terms and conditions as the franchise issued to an 156
incumbent video service provider in the political subdivision; 157
(iii) Has been granted a certificate of franchise 158
authority to do business in the state by the Secretary of State as 159
authorized in this act; 160
(b) A franchise between a political subdivision and a 161
video service provider described in paragraph (a)(i) of this 162
subsection or paragraph (a)(ii) of this subsection expires on the 163
earlier of: 164
(i) Ten (10) years from the date the franchise was 165
effective; or 166
(ii) The original expiration date of the 167
franchise. 168
(2) (a) (i) This act does not prohibit a person from 169
holding a franchise issued by a political subdivision and holding 170
a certificate of franchise authority issued by the Secretary of 171
State for a different service area. 172
(ii) Except as permitted under this section, a 173
video service provider shall not hold a franchise issued by a 174
political subdivision and a certificate of franchise authority 175
issued by the Secretary of State for the same service area. 176
(b) An incumbent video service provider may submit an 177
application for a certificate of franchise authority for a service 178
area in which the incumbent video service provider has an existing 179
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franchise from a political subdivision for the service area, and 180
upon the granting of a certificate of franchise authority to the 181
incumbent video service provider, the incumbent video service 182
provider's franchise from the political subdivision shall no 183
longer be of any force or effect. 184
(c) In each service area in which an incumbent video 185
service provider provides video service, the incumbent video 186
service provider has sole discretion to determine whether or not 187
to apply for a certificate of franchise authority or continue to 188
provide service under an existing franchise issued by a political 189
subdivision. 190
(3) An applicant seeking a certificate of franchise 191
authority shall: 192
(a) Submit an application to the Secretary of State 193
that provides: 194
(i) The name of the applicant; 195
(ii) The address of the applicant's principal 196
place of business in the state; 197
(iii) The names of the applicant's principal 198
executive officers; 199
(iv) The designated Mississippi representative for 200
the applicant; 201
(v) Identification of the political subdivisions 202
or parts of political subdivisions constituting the service areas 203
in which the applicant intends to provide video service; and 204
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(vi) The date on which the applicant intends to 205
begin providing video service in the service area described in the 206
application. 207
(b) Provide verification from an officer, general 208
partner, or managing member of the applicant that: 209
(i) The applicant has filed with the Federal 210
Communications Commission the applicable forms needed by the 211
Federal Communications Commission in advance of offering video 212
service in this state; 213
(ii) The applicant is legally, financially, and 214
technically qualified to provide video service; and 215
(iii) 1. The applicant has and maintains with one 216
or more companies licenses to do business in the state 217
comprehensive general liability insurance coverage and automobile 218
liability insurance coverage. 219
2. The insurance policy shall require that 220
the insurance carrier pay on behalf of the applicant, up to a 221
limit of not less than One Million Dollars ($1,000,000.00) for 222
bodily or personal injury, death, or property damage or loss as a 223
result of any one (1) occurrence or accident, regardless of the 224
number of persons injured or the number of claimants, arising out 225
of the negligent or otherwise wrongful act or omission of the 226
applicant, or the applicant's employees or agents. 227
3. A certificate of automobile liability 228
self-insurance issued to the applicant and maintained under 229
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Section 63-15-53 satisfies the liability insurance coverage 230
requirements of this subsection. 231
(4) Upon receipt of an application for a certificate of 232
franchise authority under this section, the Secretary of State 233
shall: 234
(a) Notify the applicant within thirty (30) days after 235
receipt of the application whether the application needs 236
additional information or is complete; 237
(b) Issue a certificate of franchise authority within 238
fifteen (15) days after the application is complete; and 239
(c) Provide written notice of a certificate of 240
franchise authority within fifteen (15) days after issuance of a 241
certificate of franchise authority to the governing body of each 242
political subdivision located in the service area designated in 243
the application for a certificate of franchise authority. 244
(5) (a) A holder of a certificate of franchise authority 245
may change the boundaries of an existing service area authorized 246
under the certificate of franchise authority by filing written 247
notice of the modification with the Secretary of State with the 248
filing fee required under Section 77-21-7. 249
(b) The boundary modifications are effective on the 250
date the written notice is filed with the Secretary of State. 251
(c) Such modifications shall not extend the term of the 252
certificate of franchise authority as established in subsection 253
(8) of this section. 254
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(6) (a) A certificate of franchise authority is 255
transferrable. 256
(b) To transfer a certificate of franchise authority, 257
the successor shall: 258
(i) File an application containing the information 259
required in subsection (3) of this section; and 260
(ii) Acknowledge with the Secretary of State that 261
the successor shall provide notice to the political subdivision 262
with jurisdiction concerning the public rights-of-way to be used 263
to undertake operation and maintenance of video facilities under 264
an approved certificate of franchise authority. 265
(c) A notice of transfer is approved once received by 266
the Secretary of State. 267
(7) The holder of a certificate of franchise authority may 268
terminate the certificate of franchise authority by submitting a 269
written notice to the Secretary of State and an affected political 270
subdivision. 271
(8) A certificate of franchise authority is: 272
(a) Nonexclusive; 273
(b) Valid for an initial term of ten (10) years, 274
subject to changes in federal law; and 275
(c) Renewable for additional ten-year periods for video 276
service providers in compliance with the requirements of 277
subsection (3) of this section. 278
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(9) To the extent required for the purposes of 47 USC §§ 521 279
through 561, as they existed on January 1, 2026, the state shall 280
constitute the franchising authority for video service providers 281
in the state. 282
(10) The duties of the Secretary of State under this act are 283
ministerial. The Secretary of State shall not condition or limit 284
a certificate of franchise authority by imposing on the holder of 285
a certificate of franchise authority any obligations or 286
requirements that are not authorized by this act. 287
SECTION 4. The following shall be codified as Section 288
77-21-7, Mississippi Code of 1972: 289
77-21-7. The fees for a certificate of franchise authority 290
to be collected by the Secretary of State include: 291
(a) An application filing fee of One Thousand five 292
Hundred Dollars ($1,500.00) that includes the cost of issuance of 293
a certificate of franchise authority by the Secretary of State; 294
and 295
(b) A fee of One Hundred Dollars ($100.00) for 296
accepting an amendment to a certificate of franchise authority or 297
providing a notice required by this act. 298
SECTION 5. The following shall be codified as Section 299
77-21-9, Mississippi Code of 1972: 300
77-21-9. (1) To enable the provision of video service, a 301
political subdivision shall allow the holder of a certificate of 302
franchise authority to install, construct, and maintain facilities 303
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in the public rights-of-way and easements dedicated to a 304
compatible use over which the political subdivision has 305
jurisdiction. 306
(2) A political subdivision shall provide the holder of a 307
certificate of franchise authority with open, comparable, 308
nondiscriminatory, and competitively neutral access to the public 309
rights-of-way in its jurisdiction. 310
(3) This act does not exempt a video service provider from 311
compliance with all lawful political subdivision land use 312
regulations, including without limitation zoning laws, building 313
permit requirements, pole attachment agreements, street cut 314
permits, and other permits required for the use of a political 315
subdivision's right-of-way, except that a provider paying the 316
video service fee pursuant to Section 77-21-11 shall not be 317
charged additional fees for such permits and shall not be required 318
to post additional bonds or insurance certificates. 319
(4) (a) In order to construct, maintain, or remove 320
facilities necessary to provide video services, a video service 321
provider may peacefully enter upon the right-of-way of a political 322
subdivision. 323
(b) A video service provider is liable for any damage 324
that may result from exercising a right under paragraph (a) of 325
this subsection. 326
(5) A video service provider may offer such other services 327
over its facility as it is capable, without having to obtain 328
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additional franchises, licenses, permits or authorizations for use 329
of the right-of-way. 330
(6) If, at any time, a video service provider ceases to 331
provide video service, as that term is defined in this act, the 332
video service provider shall have no obligation to remove its 333
facilities in the right-of-way, so long as the facilities are 334
being utilized to provide one or more services to the residents of 335
the political subdivision. 336
SECTION 6. The following shall be codified as Section 337
77-21-11, Mississippi Code of 1972: 338
77-21-11. (1) As used in this section: 339
(a) (i) "Gross revenue" shall be calculated in 340
accordance with generally accepted accounting principles and means 341
all consideration of any kind or nature, including without 342
limitation cash, credit, property, and in-kind contributions, 343
services, or goods derived by the holder of a certificate of 344
franchise authority from the operation of the video service 345
provider's network to provide video service within the political 346
subdivision. 347
(ii) "Gross revenue" includes all consideration 348
paid to the holder of a certificate of franchise authority and its 349
affiliates only to the extent that the holder of a certificate of 350
franchise authority or its affiliates are acting as a provider of 351
video service under this act, which includes the following: 352
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1. All fees charged to subscribers for any 353
video services provided by the holder of a certificate of 354
franchise authority; 355
2. Any fee imposed on the holder of a 356
certificate of franchise authority by this act that is passed 357
through and paid by subscribers, including, without limitation, 358
the video service fee; 359
3. Compensation received by the holder of a 360
certificate of franchise authority or its affiliates that is 361
derived from the operation of the holder of a certificate of 362
franchise authority's network to provide video service with 363
respect to commissions that are paid to the holder of a 364
certificate of franchise authority as compensation for promotion 365
or exhibition of any products or services on the holder of 366
certificate of franchise authority's network, including "home 367
shopping" or a similar channel under subparagraph (iii)5 of this 368
subsection; and 369
4. A pro rata portion of all revenue derived 370
by the holder of a certificate of franchise authority or its 371
affiliates under compensation arrangements for advertising derived 372
from the operation of the holder of a certificate of franchise 373
authority's network to provide the video service within a 374
political subdivision under item 3 of this subparagraph. The 375
allocation is based on the number of subscribers in the political 376
subdivision divided by the total number of subscribers in relation 377
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to the relevant regional or national compensation arrangement. 378
Advertising commissions paid to third parties shall not be netted 379
against advertising revenue included in gross revenue. Revenue of 380
an affiliate derived from the affiliate's provision of video 381
service is gross revenue to the extent the treatment of such 382
revenue as revenue of the affiliate and not of the holder of a 383
certificate of franchise authority has the effect, whether 384
intentional or unintentional, of evading the payment of fees that 385
would otherwise be paid to the political subdivision. In no event 386
shall revenue of an affiliate be gross revenue to the holder of a 387
certificate of franchise authority if such revenue is otherwise 388
subject to fees to be paid to the political subdivision. 389
(iii) "Gross revenue" does not include: 390
1. Any revenue not actually received even if 391
billed, such as bad debt; 392
2. Nonvideo service revenues received by any 393
affiliate or any other person in exchange for supplying goods or 394
services used by the holder of a certificate of franchise 395
authority to provide video service; 396
3. Refunds, rebates, or discounts made to 397
subscribers, leased-access providers, or a political subdivision; 398
4. Any revenues from services classified as 399
nonvideo service under federal law, including, without limitation, 400
revenue received from telecommunications services, internet 401
streaming services, revenue received from information services, 402
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and any other revenues attributed by the holder of a certificate 403
of franchise authority to nonvideo service according to Federal 404
Communications Commission rules, regulations, standards, or 405
orders; 406
5. Any revenue paid by subscribers to home 407
shopping programmers directly from the sale of merchandise through 408
any home shopping channel offered as part of the video services 409
but not excluding any commissions that are paid to the holder of a 410
certificate of franchise authority as compensation for promotion 411
or exhibition of any products or services on the holder of a 412
certificate of franchise authority's network, such as a "home 413
shopping" or a similar channel; 414
6. The sale of video services for resale in 415
which the purchaser is required by this act to collect the fees 416
from the purchaser's customer. This act is not intended to limit 417
state's rights under 47 USC § 542(h); 418
7. The provision of video services to 419
customers at no charge, including, without limitation, the 420
provision of video services to public institutions, public 421
schools, or governmental entities; 422
8. Any tax of general applicability imposed 423
upon the holder of a certificate of franchise authority or upon 424
subscribers by a city, state, federal, or any other governmental 425
entity and required to be collected by the holder of a certificate 426
of franchise authority and remitted to the taxing entity, 427
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including sales and use tax, gross receipts tax, excise tax, 428
utility users' tax, public service tax, communication taxes, and 429
fees not imposed by this act; 430
9. Any foregone revenue from the holder of a 431
certificate of franchise authority's provision of free or reduced 432
cost video services to any person, including, without limitation, 433
employees of the holder of a certificate of franchise authority, 434
to the political subdivision and other public institutions or 435
other institutions. However, any foregone revenue that the holder 436
of a certificate of franchise authority chooses not to receive in 437
exchange for trades, barters, services, or other items of value is 438
included in gross revenue; 439
10. Sales of capital assets or sales of 440
surplus equipment that are not used by the purchaser to receive 441
video services from the holder of a certificate of franchise 442
authority; 443
11. Directory or internet advertising 444
revenue, including yellow pages, white pages, banner 445
advertisement, and electronic publishing; and 446
12. Reimbursement by programmers of marketing 447
costs incurred by the holder of a franchise for the introduction 448
of new programming that exceeds the actual costs. 449
(b) "Provider's network" means the optical spectrum 450
wavelengths, bandwidth, or other current or future technological 451
capacity used for the transmission of video programming over 452
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wireline directly to subscribers within the geographic area within 453
the political subdivision as designated by the provider in its 454
franchise. 455
(2) A video service provider offering video service in a 456
political subdivision under a certificate of franchise authority 457
shall pay to the political subdivision where it provides video 458
service a video service provider fee as may be required by the 459
political subdivision under this section. 460
(3) The video service provider's fee is: 461
(a) Paid to the political subdivision where video 462
service is provided quarterly, forty-five (45) days after the 463
close of each calendar quarter; 464
(b) Computed as a percentage of gross revenue; and 465
(c) Beginning on the first day after the forty-fifth 466
day after the close of the previous calendar quarter, simple 467
interest at a rate equal to that for judgments shall apply to 468
video service provider fee payments past due. 469
(4) The political subdivision shall not require: 470
(a) Except as otherwise provided in this section or 471
Section 77-21-9, any additional fee or charge from the video 472
service provider; or 473
(b) The use of a different calculation method. 474
(5) (a) The video service provider fee is a percentage of 475
gross revenue and determined by the political subdivision. 476
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(b) (i) If there is an incumbent video service 477
provider providing video service in the political subdivision, the 478
video service provider shall pay an amount equal to the percentage 479
of gross revenue paid by an incumbent video service provider or 480
five percent (5%), whichever is less. 481
(ii) If there is not an incumbent video service 482
provider having a franchise agreement with the political 483
subdivision or if a political subdivision has not previously 484
established and assessed a fee to an incumbent video service 485
provider, the political subdivision may establish the video 486
service provider fee in an amount not in excess of five percent 487
(5%) of the gross revenue. A video service provider shall provide 488
the political subdivision with written notice of its intent to 489
offer video services and request that the political subdivision 490
provide written notice of the video service provider fee not in 491
excess of five percent (5%). If the political subdivision fails 492
to respond within thirty (30) days, the presumption shall be a 493
zero percent (0%) fee. 494
(iii) The percentage of gross revenue shall apply 495
equally to all video service providers in the political 496
subdivision, regardless of whether they provide video service 497
under a local franchise or a certificate of franchise authority. 498
However, a fee shall not be imposed on any video service customer 499
except pursuant to a valid franchise or pursuant to a certificate 500
of franchise authority. 501
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(iv) If the political subdivision enters into an 502
agreement with another nonregulated entity for access to the 503
political subdivision's rights-of-way: 504
1. For a percentage of revenue, earnings, or 505
some other financial metric, and that percentage is less than that 506
which is agreed upon by the political subdivision and the video 507
service provider, the political subdivision shall, within ninety 508
(90) days, notify the video service provider and reduce the amount 509
of the gross revenue percentage assessed on video service 510
providers to the same percentage as the other nonregulated entity. 511
2. For a monthly or annual rental fee, the 512
political subdivision shall, within ninety (90) days, notify the 513
video service provider and provide the video service provider the 514
option to provide either the agreed-to percentage or the monthly 515
or annual rental fee, whichever is less. 516
3. For a one-time fixed fee, the political 517
subdivision shall, within ninety (90) days, notify the video 518
service provider and reduce the amount of the gross revenue 519
percentage assessed on video service providers to zero percent 520
(0%). 521
(6) (a) A political subdivision shall provide ninety (90) 522
days' notice to a video service provider operating in the 523
political subdivision before establishing, increasing, or lowering 524
a video service provider fee; provided, however, that in no case 525
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shall the amount of such provider fee be greater that five percent 526
(5%) of gross revenue. 527
(b) A video service provider fee or a change to the 528
percentage level of an existing fee is not effective until ninety 529
(90) days after the notice required in this subsection is given to 530
the video service provider. 531
(7) Payment of the fees required in this section shall 532
accompany a written report that: 533
(a) Identifies the amount of gross revenues received 534
from subscribers for the provision of video service to 535
subscribers; and 536
(b) Allows for a proper compliance review by the 537
political subdivision. 538
(8) (a) A political subdivision may conduct an audit of a 539
video service provider to ensure proper and accurate payment of 540
the video service provider fee. 541
(b) To conduct an audit, the political subdivision 542
shall: 543
(i) Provide reasonable advance written notice; 544
(ii) Audit the video service provider not more 545
than one (1) time in a calendar year; and 546
(iii) At its discretion, review the books and 547
records at the location in the jurisdiction where the books and 548
records are kept or consent to review copies of the books and 549
records provided electronically. 550
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(c) The political subdivision and the video service 551
provider are responsible for their respective costs of the audit. 552
(9) Payment of an undisputed amount or refund due to the 553
political subdivision or the video service provider is required 554
within sixty (60) days after it is recognized, plus the interest 555
as computed on civil judgments. 556
(10) The video service provider shall keep business records 557
showing any gross revenue, even if there is a change in ownership, 558
for at least three (3) years after the revenue is recognized by 559
the video service provider in its books and records. 560
(11) A video service provider may identify and collect the 561
amount of the video service provider fee as a separate line item 562
on the regular bill of each subscriber. 563
(12) (a) Any city annexing lands shall notify a video 564
service provider in writing of any such annexation, including a 565
description of the territory annexed. 566
(b) Beginning the first day of the calendar quarter 567
occurring after the video service provider has received at least 568
ninety (90) days' notice of annexation of customers into the 569
city's corporate limits, subscribers within the annexed territory 570
shall be considered city subscribers for purposes of this section. 571
SECTION 7. The following shall be codified as Section 572
77-21-13, Mississippi Code of 1972: 573
77-21-13. (1) A video service provider shall not deny 574
access to video service to any group of potential residential 575
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subscribers based on the income of the residents in the local area 576
in which such a group resides. 577
(2) A franchising authority or political subdivision shall 578
not impose on a video service provider any build-out or other 579
requirements for the construction, placement, or installation of 580
facilities used to provide video services. 581
(3) (a) If a court of competent jurisdiction finds that the 582
holder of a certificate of franchise authority is not in 583
compliance with this act, the court shall order the holder of the 584
certificate of franchise authority to cure the noncompliance 585
within a reasonable time. 586
(b) If the holder of a certificate of franchise 587
authority fails to cure the noncompliance as ordered by a court 588
under paragraph (a) of this subsection, the court may remedy the 589
noncompliance. 590
SECTION 8. The following shall be codified as Section 591
77-21-15, Mississippi Code of 1972: 592
77-21-15. (1) A video service provider shall comply with 593
the customer service requirements under 47 CFR § 76.309(c), as it 594
existed on January 1, 2026. 595
(2) (a) A video service provider shall maintain a local or 596
toll-free number for customer service contact. 597
(b) (i) A video service provider shall implement an 598
informal process for handling political subdivision or customer 599
inquiries, billing issues, service issues, and other complaints. 600
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(ii) If an issue is not resolved through the 601
informal process under subparagraph (i) of this paragraph (b), a 602
political subdivision may request a confidential, nonbinding 603
mediation with the video service provider, with the costs of the 604
mediation to be shared equally between the political subdivision 605
and the video service provider. 606
(iii) 1. A video service provider shall notify 607
customers in writing of a change in rates, programming services, 608
or channel positions as soon as possible. 609
2. Written notice shall be given to 610
subscribers at least thirty (30) days in advance of the change if 611
the change is within the control of the video service provider. 612
3. The written notice required herein may be 613
provided electronically. 614
SECTION 9. The following shall be codified as Section 615
77-21-17, Mississippi Code of 1972: 616
77-21-17. (1) As used in this section, "public, education, 617
and government access channels," also known as "PEG channels," 618
means channels used for noncommercial local interest programming. 619
(2) (a) A video service provider, on the date that it first 620
provides video service to a subscriber in the service area of a 621
political subdivision or within a reasonable time, shall: 622
(i) Designate a sufficient amount of capacity on 623
its video service network to allow PEG channels for noncommercial 624
programming; and 625
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(ii) Designate a sufficient amount of capacity on 626
its network to allow up to three (3) PEG channels or channels 627
equal in number to those that have been activated by an incumbent 628
video service provider, if any, on the date that the video service 629
provider first provides video service to a subscriber in a 630
political subdivision, whichever is less. 631
(b) (i) A political subdivision served by an incumbent 632
video service provider that opts to provide service under a 633
certificate of franchise authority issued under Section 77-21-5 is 634
entitled to PEG channels under this section. 635
(ii) If the political subdivision was not served 636
by an incumbent video service provider, the video service provider 637
shall provide one (1) PEG channel for the use of the political 638
subdivision. 639
(c) A political subdivision may waive its rights to a 640
PEG channel. 641
(3) (a) A video service provider is responsible for: 642
(i) The transmission of the programming on each 643
channel to subscribers; and 644
(ii) Providing one (1) point of connectivity to 645
each PEG channel distribution point in the political subdivision 646
to be served. 647
(b) A video service provider may: 648
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(i) Provide PEG channels on a service tier 649
subscribed to by more than fifty percent (50%) of a video service 650
provider's subscribers; 651
(ii) Consolidate PEG channels to a single channel 652
location; and 653
(iii) Provide PEG channels through an application 654
on a menu or as a choice on an assigned channel. 655
(c) A video provider shall not: 656
(i) Change a channel location assigned to a PEG 657
channel without providing written notice to the affected political 658
subdivision at least thirty (30) days before the date on which the 659
change is to become effective; or 660
(ii) Be required to provide an institutional 661
network or equivalent capacity on its video service network. 662
(d) When technically and economically possible, a video 663
service provider shall: 664
(i) Use reasonable efforts to interconnect its 665
video network to share PEG channel programming with other video 666
service providers through direct cable, microwave link, satellite, 667
or other reasonable method of connection; 668
(ii) Negotiate in good faith to provide 669
interconnection of PEG channels; and 670
(iii) If requesting to interconnect its video 671
network to share PEG channel programming with another video 672
service provider, pay for the cost of the interconnection. 673
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(4) (a) The operation, production, and content of any 674
programming aired on a PEG channel is solely the responsibility of 675
the public, educational, and governmental agencies receiving the 676
benefit of the capacity. 677
(b) The entity producing the PEG channel programming 678
and sending it to the video service provider shall ensure that 679
transmissions, content, or programming to be sent to the video 680
service provider is: 681
(i) Provided in a manner that is capable of being 682
accepted and sent by the video service provider over its video 683
service network without alteration or change in the content or 684
transmission signal; and 685
(ii) Compatible with the technology or protocol 686
used by the video service provider to deliver its video service. 687
(c) Governmental entities utilizing PEG channels shall 688
make the programming available to video service providers 689
providing service in the governmental entity's jurisdiction in a 690
nondiscriminatory manner. 691
(d) The governmental entity providing programming for 692
use on a channel designated for public, education, and government 693
access use may request a change of the point of connectivity but 694
shall pay the video service provider for costs associated with the 695
change of the point of connectivity. 696
SECTION 10. The following shall be codified as Section 697
77-21-19, Mississippi Code of 1972: 698
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77-21-19. (1) The Legislature intends that this act be 699
consistent with the Cable Communications Policy Act of 1984, 47 700
USC § 521 et seq., as it existed on January 1, 2026. 701
(2) Except as otherwise stated in this act, this act shall 702
not be interpreted to prevent a video service provider, a 703
political subdivision, or a franchising entity from entering into 704
a negotiated franchise agreement with a political subdivision or 705
seeking clarification of its rights and obligations under federal 706
or state law or to exercise a right or authority under federal or 707
state law. 708
(3) This act does not limit, abrogate, or supersede Article 709
7, Chapter 9, Title 77, Mississippi Code of 1972, regarding 710
telecommunications service in the state, and does not require a 711
telephone corporation to get a certificate of franchise authority 712
or local authorization under this act to permit the telephone 713
corporation to construct, upgrade, operate, or maintain its 714
telecommunications system to provide telecommunications service. 715
(4) The regulation of a person holding a certificate of 716
franchise authority issued under this act shall be exclusive to 717
the Secretary of State as provided under this act. 718
(5) A person holding a certificate of franchise, with 719
respect to any political subdivision identified by the video 720
service provider in its application or modifications filed under 721
Section 77-21-5, shall not be required to obtain any 722
authorization, permit, franchise, or license from, or pay another 723
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fee or franchise tax to, or post bond in any political subdivision 724
of this state to engage in the business or perform any service 725
authorized under this act. 726
SECTION 11. This act shall take effect and be in force from 727
and after its passage. 728