1 of 2
HOUSE DOCKET, NO. 215 FILED ON: 1/11/2023
HOUSE . . . . . . . . . . . . . . . No. 74
The Commonwealth of Massachusetts
_________________
PRESENTED BY:
Joan Meschino and Mathew J. Muratore
_________________
To the Honorable Senate and House of Representatives of the Commonwealth of Massachusetts in General
Court assembled:
The undersigned legislators and/or citizens respectfully petition for the adoption of the accompanying bill:
An Act to modernize funding for community media programming.
_______________
PETITION OF:
NAME:DISTRICT/ADDRESS :DATE ADDED:Joan Meschino3rd Plymouth1/9/2023Mathew J. Muratore1st Plymouth1/11/2023Josh S. Cutler6th Plymouth1/18/2023Peter Capano11th Essex1/19/2023Lindsay N. Sabadosa1st Hampshire1/25/2023Sally P. Kerans13th Essex1/26/2023Ruth B. Balser12th Middlesex1/26/2023Brian W. Murray10th Worcester1/27/2023James K. Hawkins2nd Bristol1/27/2023Hannah Kane11th Worcester1/30/2023Susan Williams Gifford2nd Plymouth1/30/2023John J. CroninWorcester and Middlesex1/30/2023Danielle W. Gregoire4th Middlesex1/31/2023Jack Patrick Lewis7th Middlesex1/31/2023William C. Galvin6th Norfolk1/31/2023Michael P. Kushmerek3rd Worcester2/1/2023Simon Cataldo14th Middlesex2/1/2023Mindy Domb3rd Hampshire2/2/2023 2 of 2
Thomas P. Walsh12th Essex2/2/2023Tackey Chan2nd Norfolk2/2/2023James Arciero2nd Middlesex2/2/2023Angelo L. D'Emilia8th Plymouth2/2/2023Natalie M. Higgins4th Worcester2/3/2023Ryan M. Hamilton15th Essex2/3/2023Brian M. Ashe2nd Hampden2/6/2023Jason M. LewisFifth Middlesex2/6/2023David K. Muradian, Jr.9th Worcester2/6/2023David F. DeCoste5th Plymouth2/6/2023Tram T. Nguyen18th Essex2/7/2023Danillo A. Sena37th Middlesex2/7/2023Jennifer Balinsky Armini8th Essex2/7/2023Paul McMurtry11th Norfolk2/8/2023Natalie M. Blais1st Franklin2/8/2023Thomas M. Stanley9th Middlesex2/8/2023Carlos González10th Hampden2/9/2023Marcus S. Vaughn9th Norfolk2/9/2023Jacob R. OliveiraHampden, Hampshire and Worcester2/9/2023Patrick Joseph Kearney4th Plymouth2/9/2023Colleen M. Garry36th Middlesex2/13/2023Sean Garballey23rd Middlesex2/14/2023Denise C. Garlick13th Norfolk2/15/2023James B. EldridgeMiddlesex and Worcester2/16/2023David Allen Robertson19th Middlesex2/16/2023Steven Owens29th Middlesex2/17/2023Daniel Cahill10th Essex2/17/2023Daniel R. Carey2nd Hampshire2/17/2023Smitty Pignatelli3rd Berkshire2/21/2023David M. Rogers24th Middlesex2/21/2023Dylan A. FernandesBarnstable, Dukes and Nantucket2/23/2023Kay Khan11th Middlesex2/23/2023Kate Lipper-Garabedian32nd Middlesex2/23/2023Manny Cruz7th Essex2/23/2023Edward R. Philips8th Norfolk2/24/2023David T. Vieira3rd Barnstable2/28/2023Jonathan D. Zlotnik2nd Worcester3/1/2023 1 of 13
HOUSE DOCKET, NO. 215 FILED ON: 1/11/2023
HOUSE . . . . . . . . . . . . . . . No. 74
By Representatives Meschino of Hull and Muratore of Plymouth, a petition (accompanied by
bill, House, No. 74) of Joan Meschino, Mathew J. Muratore and others for legislation to establish
a comprehensive statewide policy concerning streaming entertainment services and the recovery
of municipal costs for the management and maintenance of digital infrastructure. Advanced
Information Technology, the Internet and Cybersecurity.
The Commonwealth of Massachusetts
_______________
In the One Hundred and Ninety-Third General Court
(2023-2024)
_______________
An Act to modernize funding for community media programming.
Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority
of the same, as follows:
1 SECTION 1. The General Laws of 2020 are hereby amended by inserting after Chapter
2166A the following chapter:-
3 Chapter 166B.
4 Section 1. The purposes of this chapter are to --
5 (a) establish a comprehensive statewide policy concerning compensation for the use of
6digital infrastructure in the public rights-of-way;
7 (b) establish legislative findings that digital infrastructure in the public rights-of-way is of
8valuable economic and public interest; 2 of 13
9 (c) establish standards which encourage a competitive environment for growth and
10development of streaming entertainment services and which assure that streaming entertainment
11services are responsive to the needs and interests of the local community;
12 (d) establish guidelines for the exercise of Commonwealth and local authority with
13respect to the regulation of the commercial use of the public rights-of-way by entities that
14provide and deliver streaming entertainment services;
15 (e) assure that streaming entertainment operators are encouraged to provide the widest
16possible diversity of information sources and services to the public;
17 (f) establish an orderly process for the Department of Revenue to assess and recover
18payments from streaming entertainment operators;
19 (g) establish an orderly process to collect unpaid assessments and monetary fines from
20non-compliant streaming entertainment operators operating in the Commonwealth;
21 (h) protect the substantial interest of the Commonwealth in preventing false and
22deceptive business practices; and,
23 (i) promote competition among streaming entertainment service operators and minimize
24regulation that would impose an undue economic burden on streaming entertainment operators.
25 Section 2. Definitions.
26 For the purposes of this Act, the following words shall have the following meanings:
27 “Commonwealth”, the Commonwealth of Massachusetts; 3 of 13
28 “cable operator”, any entity that is providing cable services under a franchise agreement
29with a city, town or district and remitting a franchise fee to such city, town or district as
30permitted by the Cable Communications Policy Act of 1984, 47 U.S.C. § 522, et seq.;
31 “gross revenues”, all revenue received directly or indirectly by a streaming entertainment
32operator arising from, attributable to, or in any way derived from the sale of streaming
33entertainment services in the Commonwealth. The term “gross revenues” shall not include bad
34debts, investment income, refunded deposits, or any taxes on services furnished by streaming
35entertainment providers and imposed directly upon any user by the local, state, federal or other
36governmental unit;
37 “person”, an individual, partnership, association, joint stock company, trust, corporation,
38or governmental entity;
39 “public, educational, or governmental access facilities”, facilities and equipment for the
40use of channel capacity designated for public, educational, or governmental use;
41 “streaming entertainment services”, any paid service that provides audio, video, or
42computer-generated or computer-augmented entertainment and delivers such entertainment via
43digital infrastructure to users and delivers such services through facilities located at least in part
44in the public rights-of-way without regard to delivery technology, including internet protocol
45technology or other intelligences. This definition does not include any cable service defined in
4647 U.S.C. § 522(6) or any video programming provided by a commercial mobile service
47provider defined in 47 U.S.C § 332(d) or provided solely as part of, and via, a service that
48enables users to access content, information, electronic mail, or other services offered over the
49public internet; 4 of 13
50 “streaming entertainment operator”, any company, entity, or organization that
51 (1) provides streaming entertainment services and delivers such entertainment via digital
52infrastructure provided through facilities located at least in part in the public rights-of-way with
53regard to delivery technology, including internet technology or other intelligences, and
54 (2) earns more than two-hundred and fifty thousand dollars (USD $250,000.00) in gross
55annual revenues from providing such services to users in the Commonwealth;
56 “video programming”, programming provided by, or generally considered comparable to
57programming provided by, a television broadcast station.
58 Section 3. Authority of the Commonwealth to regulate streaming entertainment services
59and collect compensation for the use of the public rights-of-way.
60 (a) Pursuant to the authority of the Commonwealth to regulate trade under Section 1 of
61Chapter 93 and to promote economic competition under Section 4 of Chapter 93, and to regulate
62business practices for consumer protection under Section 1 of Chapter 93A, the Commonwealth
63shall regulate the commercial sale of streaming entertainment services to individuals and
64businesses in the Commonwealth;
65 (b) pursuant to the authority of the Commonwealth to collect payments from commercial
66operators doing business with individuals and businesses physically located in the
67Commonwealth and to levy assessments under Section 1 of Chapter 58, the Commonwealth shall
68collect payments from the private sector use of the public rights-of-way by imposing an
69assessment upon streaming entertainment providers; 5 of 13
70 (c) nothing in this Act shall limit or affect the authority of the Commonwealth or local
71government or instrumentality thereof regarding ownership and control of public property and
72public rights-of-way;
73 (d) no agency of the Commonwealth or local government shall have any authority to
74regulate the rates charged by any streaming entertainment operator.
75 Section 4. Imposition and collection of an assessment for the use of the public rights-of-
76way.
77 (a) A streaming entertainment operator shall pay an assessment equal to five percent
78(5%) of such streaming entertainment operator’s gross annual revenues derived from the sale or
79provision of streaming entertainment services to individuals and businesses in the
80Commonwealth.
81 (b) The assessment authorized in this section shall be for each year, or part of each year,
82that such streaming entertainment operator is engaged in the sale of streaming entertainment
83services to individuals and businesses in the Commonwealth.
84 (c) A streaming entertainment operator shall file bi-annual financial statements reporting
85its gross revenues derived in such period from the sale of streaming entertainment services to
86individuals and businesses in the Commonwealth.
87 (1) Financial statements shall be filed with the Department of Revenue and shall not be
88classified as a public record pursuant to Section 1 of Chapter 66; 6 of 13
89 (2) financial statements shall contain a complete accounting and itemization of gross
90revenues derived from, or pertaining to, the sale or provision of streaming entertainment services
91to individuals and businesses in the Commonwealth;
92 (3) financial statements shall conform to Generally-Accepted Accounting Principles
93(GAAP) and shall be submitted in writing;
94 (4) for the period inclusive of January 1 through June 30, a streaming entertainment
95operator shall submit a financial statement on or before August 15. For the period inclusive of
96July 1 through December 31, a streaming entertainment operator shall submit a financial
97statement on or before February 15 of the following year;
98 (5) streaming entertainment operators that fail to submit financial statements within thirty
99(30) days of the aforestated deadlines shall be assessed a monetary penalty amount equal to one
100percent (1%) of the gross revenues derived from, or pertaining to, the sale or provision of
101streaming entertainment services to individuals and businesses residing in the Commonwealth
102during the applicable time period;
103 (6) streaming entertainment operators that fail to submit financial statements within sixty
104(60) days of the aforestated deadlines shall be assessed a monetary penalty amount equal to two
105percent (2%) of the gross revenues derived from, or pertaining to, the sale or provision of
106streaming entertainment services to individuals and businesses residing in the Commonwealth
107during the applicable time period;
108 (7) any monetary penalty assessed upon a streaming entertainment operator for failure to
109submit financial statements before the deadline shall be cumulative to the assessment of five
110percent (5%) of gross revenues. 7 of 13
111 (d) Subject to audit and revision pursuant to the Department of Revenue’s authority in
112Section 5, the Department of Revenue shall utilize the financial statement of a streaming
113entertainment operator to assess an amount equal to five percent (5%) of such streaming
114entertainment operator’s gross revenues derived in such period from the sale or provision of
115streaming entertainment service to individuals and businesses in the Commonwealth.
116 (e) Upon assessment by written notice of the Department of Revenue, a streaming
117entertainment operator must submit payment to the Commonwealth within thirty (30) days of
118such notice.
119 (1) Streaming entertainment operators that fail to submit payment within thirty (30) days
120of the aforestated deadline shall be assessed a monetary penalty amount equal to two percent
121(2%) of the gross revenues derived from, or pertaining to, the sale or provision of streaming
122entertainment services to individuals and businesses in the Commonwealth during the applicable
123time period;
124 (2) streaming entertainment operators that fail to submit remuneration of the assessment
125within sixty (60) days of the aforestated deadline shall be assessed a penalty equal to three
126percent (3%) of the gross revenues derived from, or pertaining to, the sale or provision of
127streaming entertainment service to individuals and businesses in the Commonwealth during the
128applicable time period;
129 (3) any monetary penalty assessed upon a streaming entertainment operator for failure to
130submit payment before the deadline shall be in addition to the assessment of five percent (5%) of
131gross revenues. 8 of 13
132 (f) In accordance with Section 7 of this Act, the Commonwealth, local governments, or
133instrumentalities thereof, may levy additional monetary and legal penalties upon any streaming
134entertainment operator that fails to timely provide written financial statements or remuneration of
135assessments.
136 Section 5. Right to audit financial records pertaining to assessable gross revenues.
137 (a) The Commonwealth shall have the right to conduct an audit or review of the records
138reasonably related to the sources, amounts and computation of assessable gross revenues derived
139from, or pertaining to, the sale or provision of streaming entertainment service to individuals and
140businesses residing in the Commonwealth within the previous three (3) years.
141 (b) Within thirty (30) days of a written request, a streaming entertainment operator shall
142provide the Department of Revenue with copies of financial records related to the review or audit
143of assessable gross revenues derived from, or pertaining to, the sale or provision of streaming
144entertainment services to individuals and businesses residing in the Commonwealth.
145 (c) In the event of an alleged underpayment, the Department of Revenue shall provide the
146streaming entertainment operator with a written statement indicating the basis for the alleged
147underpayment. The streaming entertainment operator shall have thirty (30) days from the receipt
148of a statement regarding an alleged underpayment to provide the Department of Revenue any
149written objection to the results of any assessable gross revenue review or audit, including any
150substantiating documentation. Based on this exchange of information, the Department of
151Revenue shall make a final determination of the underpayment(s), if any, within thirty (30) days
152of the streaming entertainment operator’s objection and shall provide the operator with written
153notice of the determination. 9 of 13
154 (d) Any additional assessments due to the Commonwealth as a result of the assessable
155gross revenue review or audit shall be paid to the Department of Revenue by the streaming
156entertainment operator within forty-five (45) days from the date of written notification of the
157final decision. If the assessable gross revenue review or audit shows that amounts have been
158underpaid, then the streaming entertainment operator shall pay the underpaid amount plus
159monetary fines equal to ten percent (10%) of the underpayment.
160 (e) A streaming entertainment operator adversely affected by any final action, or failure
161to act, of the Department of Revenue that is inconsistent with this section may, within thirty (30)
162days after such action or failure to act, commence an action in any court of competent
163jurisdiction within the Commonwealth. The court shall hear and decide such action on an
164expedited basis.
165 Section 6. Streaming Entertainment Fund
166 (a) There shall be a Streaming Entertainment Fund which shall consist of amounts
167credited to the fund in accordance with this section. The fund shall be administered by the state
168treasurer and held in trust exclusively for the purposes of this section. The state treasurer shall be
169treasurer-custodian of the fund and shall have the custody of its monies and securities.
170 (b) The Streaming Entertainment Fund shall consist of: (i) revenues collected from the
171assessment imposed by this Act; (ii) revenue from appropriations or other money specifically
172designated to be credited to the fund; (iii) interest earned on money in the fund; and (iv) funds
173from private sources including, but not limited to, gifts, grants and donations received by the
174Commonwealth that are specifically designated to be credited to the fund. Amounts credited to
175the fund shall not be subject to further appropriation and any money remaining in the fund at the 10 of 13
176end of a fiscal year shall not revert to the General Fund. The secretary of the Commonwealth
177shall annually, not later than December 31, report on the activity of the fund to the clerks of the
178Senate and House of Representatives and the Senate and House Committees on Ways and
179Means.
180 (c) The Streaming Entertainment Fund shall make bi-annual distributions on March 1and
181September 1 of each year. On those dates, the Streaming Entertainment Fund shall distribute,
182with no remainder left, all monies then held in the Fund according to the following formula:
183 (1) One-fifth (1/5) of the monies in the Streaming Entertainment Fund shall be distributed
184to the Commonwealth General Fund;
185 (2) Two-fifths (2/5) of the monies in the Streaming Entertainment Fund shall be
186distributed to municipalities and local governments in the Commonwealth and further allocated
187proportionally based upon population;
188 (3) Two-fifths (2/5) of the monies in the Streaming Entertainment Fund shall be
189distributed to community media centers in the Commonwealth and further allocated
190proportionally based upon population.
191 (d) The Department of Revenue shall use the most recent city and town population
192estimates of the United States Bureau of the Census in calculating distributions pursuant to(c)(2)
193and (c)(3) of this section.
194 (e) Distributions pursuant to (c)(2) of this section shall be listed upon each municipality’s
195cherry sheet for the upcoming fiscal year. 11 of 13
196 (f) The Commissioner of Revenue or any official responsible, shall, without further
197appropriation and upon certification of the Commissioner, distribute all sums allocated under (c)
198under this section.
199 (g) All sums distributed under (c)(1) of this section shall be deposited in the
200Commonwealth General Fund. All sums distributed under (c)(2) of this section shall be
201deposited in the general fund of the respective municipality. All sums distributed under (c)(3) of
202this section shall be deposited in accordance with Section 53F¾ of Chapter 44, as amended by
203Section 8 of this act.
204 (h) No expenditures from the Streaming Entertainment Fund shall be made except to
205provide funding for: (i) the operating expenses of the fund; (ii) legal and administrative expenses
206incurred in enforcing the provisions of this Act; and (iii) legal and administrative expenses
207incurred in collecting any assessment due under this act.
208 (i) All sums appropriated under this Act shall be expended in a manner reflecting and
209encouraging a policy of nondiscrimination and equal opportunity.
210 (j) All officials and employees of an agency, board, department, commission or division
211receiving monies under this Act shall take affirmative steps to ensure equality of opportunity and
212nondiscrimination in the internal affairs of state government, as well as in their relations with the
213public, including those persons and organizations doing business with the Commonwealth. Each
214agency, board, department, commission or division, in spending appropriated sums and
215discharging its statutory responsibilities, shall adopt measures to ensure equal opportunity and
216nondiscrimination in the areas of hiring, promotion, demotion or transfer, recruitment, layoff or 12 of 13
217termination, rates of compensation, in-service or apprenticeship training programs and all terms
218and conditions of employment.
219 Section 7. Judicial remedy.
220 (a) In accordance with Section 1 of Chapter 12, the Attorney General is authorized to
221enforce this Act. The Attorney General may, within seven (7) years, bring an action to recover
222any unpaid assessments and monetary penalties, or enjoin the operations of any non-compliant
223entity, in any court of competent jurisdiction.
224 (b) Any local government, or class thereof, or community media center adversely
225impacted by the action, or failure to act, of any streaming entertainment operator under this Act,
226may, within seven (7) years, bring an action to recover any unpaid assessments and monetary
227penalties, or enjoin the operations of any non-compliant entity, in any court of competent
228jurisdiction.
229 SECTION 2. Municipal streaming fund.
230 Section 53 F¾ of Chapter 44 of the General Laws shall be amended by adding at the end
231thereof the following new section: -
232 “Notwithstanding section 53 or any other general or special law to the contrary, a
233municipality that accepts this section may establish in the treasury a separate revenue account to
234be known as the PEG Access and Streaming Entertainment Funds, into which may be deposited
235funds received in connection with assessments derived from streaming entertainment providers.
236Monies in the fund shall only be appropriated to support public, educational or governmental
237access media centers.” 13 of 13
238 SECTION 3. Effective date.
239 This act shall take effect on January 1, 2024.