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H.R. 4103 allows the FCC to establish different regulations when systems <br />have at least 36 channels and 70 percent of the households are subscribers. <br />Franchise fees. As in the Senate bill, franchise fees could not exceed <br />five percent of gross revenues. Franchise fees include assessments and taxes <br />but do not include taxes of general applicability and franchise enforcement <br />requirements such as bond, penalties, and liquidated damages. <br />Services. The bill grandfathers service requirements in existing <br />franchises. The operator could remove a particular service if a significant <br />change in circumstances occurred. Whether such removal was justified would be <br />settled through litigation. The cable operator would not need to replace the <br />service with a similar service. <br />Facilities. A city could require certain cable system facilities (channel <br />capacity) and access —related facilities (studios). After negotiating with the <br />city, an operator could remove such facilities if a significant change in <br />circumstances occurred. The city and the operator would submit any unresolved <br />disputes to binding arbitration. <br />Municipal ownership. When a franchise expires, a city could buy a cable <br />system for fair market value, resolving price disputes through binding <br />arbitration. The bill does not set a minimum price when a franchise is <br />terminated for cause, however the operator would be entitled to de novo court <br />review of the basis for termination. The bill requires an independent board or <br />management company to make programming decisions for a municipally owned <br />system. No elected or appointed official.could serve on the board. <br />J <br />I <br />