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Massachusetts House Bill H106

Massachusetts 2025-2026 Regular Session

Massachusetts House Bill H106 Compare Versions

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22 HOUSE DOCKET, NO. 2934 FILED ON: 1/16/2025
33 HOUSE . . . . . . . . . . . . . . . No. 106
44 The Commonwealth of Massachusetts
55 _________________
66 PRESENTED BY:
77 David T. Vieira
88 _________________
99 To the Honorable Senate and House of Representatives of the Commonwealth of Massachusetts in General
1010 Court assembled:
1111 The undersigned legislators and/or citizens respectfully petition for the adoption of the accompanying bill:
1212 An Act to modernize funding for community media programming.
1313 _______________
1414 PETITION OF:
1515 NAME:DISTRICT/ADDRESS :DATE ADDED:David T. Vieira3rd Barnstable1/16/2025 1 of 13
1616 HOUSE DOCKET, NO. 2934 FILED ON: 1/16/2025
1717 HOUSE . . . . . . . . . . . . . . . No. 106
1818 By Representative Vieira of Falmouth, a petition (accompanied by bill, House, No. 106) of
1919 David T. Vieira for legislation to establish a comprehensive statewide policy concerning
2020 streaming entertainment services and the recovery of municipal costs for the management and
2121 maintenance of digital infrastructure. Advanced Information Technology, the Internet and
2222 Cybersecurity.
2323 [SIMILAR MATTER FILED IN PREVIOUS SESSION
2424 SEE SENATE, NO. 34 OF 2023-2024.]
2525 The Commonwealth of Massachusetts
2626 _______________
2727 In the One Hundred and Ninety-Fourth General Court
2828 (2025-2026)
2929 _______________
3030 An Act to modernize funding for community media programming.
3131 Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority
3232 of the same, as follows:
3333 1 SECTION 1. The General Laws are hereby amended by inserting after chapter 166 the
3434 2following chapter:-
3535 3 Chapter 166B.
3636 4 Section 1. The purposes of this chapter are to:
3737 5 A. establish a comprehensive statewide policy concerning compensation for the use of
3838 6digital infrastructure in the public rights-of-way;
3939 7 B. establish legislative findings that digital infrastructure in the public rights-of-way is of
4040 8valuable economic and public interest; 2 of 13
4141 9 C. establish standards which encourage a competitive environment for growth and
4242 10development of streaming entertainment services and which assure that streaming entertainment
4343 11services are responsive to the needs and interests of the local community;
4444 12 D. establish guidelines for the exercise of Commonwealth and local authority with
4545 13respect to the regulation of the commercial use of the public rights-of-way by entities that
4646 14provide and deliver streaming entertainment services;
4747 15 E. assure that streaming entertainment operators are encouraged to provide the widest
4848 16possible diversity of information sources and services to the public;
4949 17 F. establish an orderly process for the Department of Revenue to assess and recover
5050 18payments from streaming entertainment operators;
5151 19 G. establish an orderly process to collect unpaid assessments and monetary fines from
5252 20non-compliant streaming entertainment operators operating in the Commonwealth;
5353 21 H. protect the substantial interest of the Commonwealth in preventing false and deceptive
5454 22business practices; and,
5555 23 I. promote competition among streaming entertainment service operators and minimize
5656 24regulation that would impose an undue economic burden on streaming entertainment operators.
5757 25 Section 2. DEFINITIONS
5858 26 For the purposes of this Act, the following words shall have the following meanings:
5959 27 A. “Commonwealth”, the Commonwealth of Massachusetts; 3 of 13
6060 28 B. “cable operator”, any entity that is providing cable services under a franchise
6161 29agreement with a city, town or district and remitting a franchise fee to such city, town or district
6262 30as permitted by the Cable Communications Policy Act of 1984, 47 U.S.C. § 522, et seq.;
6363 31 C. “gross revenues”, all revenue received directly or indirectly by a streaming
6464 32entertainment operator arising from, attributable to, or in any way derived from the sale of
6565 33streaming entertainment services in the Commonwealth. The term “gross revenues” shall not
6666 34include bad debts, investment income, refunded deposits, or any taxes on services furnished by
6767 35streaming entertainment providers and imposed directly upon any user by the local, state, federal
6868 36or other governmental unit;
6969 37 D. “person”, an individual, partnership, association, joint stock company, trust,
7070 38corporation, or governmental entity;
7171 39 E. “public, educational, or governmental access facilities”, facilities and equipment for
7272 40the use of channel capacity designated for public, educational, or governmental use;
7373 41 F. “streaming entertainment services”, any paid service that provides audio, video, or
7474 42computer-generated or computer-augmented entertainment and delivers such entertainment via
7575 43digital infrastructure to users and delivers such services through facilities located at least in part
7676 44in the public rights-of-way without regard to delivery technology, including internet protocol
7777 45technology or other intelligences. This definition does not include any cable service defined in
7878 4647 U.S.C. § 522(6) or any video programming provided by a commercial mobile service
7979 47provider defined in 47 U.S.C § 332(d) or provided solely as part of, and via, a service that
8080 48enables users to access content, information, electronic mail, or other services offered over the
8181 49public internet; 4 of 13
8282 50 G. “streaming entertainment operator”, any company, entity, or organization that
8383 51 1. provides streaming entertainment services and delivers such entertainment via digital
8484 52infrastructure provided through facilities located at least in part in the public rights-of-way with
8585 53regard to delivery technology, including internet technology or other intelligences, and
8686 54 2. earns more than two-hundred and fifty thousand dollars (USD $250,000.00) in gross
8787 55annual revenues from providing such services to users in the Commonwealth;
8888 56 H. “video programming”, programming provided by, or generally considered comparable
8989 57to programming provided by, a television broadcast station.
9090 58 Section 3. AUTHORITY OF THE COMMONWEALTH TO REGULATE
9191 59STREAMING ENTERTAINMENT SERVICES AND COLLECT COMPENSATION FOR
9292 60THE USE OF PUBLIC RIGHTS-OF-WAY
9393 61 A. Pursuant to the authority of the Commonwealth to regulate trade under Section 1 of
9494 62Chapter 93 and to promote economic competition under Section 4 of Chapter 93, and to regulate
9595 63business practices for consumer protection under Section 1 of Chapter 93A, the Commonwealth
9696 64shall regulate the commercial sale of streaming entertainment services to individuals and
9797 65businesses in the Commonwealth;
9898 66 B. pursuant to the authority of the Commonwealth to collect payments from commercial
9999 67operators doing business with individuals and businesses physically located in the
100100 68Commonwealth and to levy assessments under Section 1 of Chapter 58, the Commonwealth shall
101101 69collect payments from the private sector use of the public rights-of-way by imposing an
102102 70assessment upon streaming entertainment providers; 5 of 13
103103 71 C. nothing in this Act shall limit or affect the authority of the Commonwealth or local
104104 72government or instrumentality thereof regarding ownership and control of public property and
105105 73public rights-of-way;
106106 74 D. no agency of the Commonwealth or local government shall have any authority to
107107 75regulate the rates charged by any streaming entertainment operator.
108108 76 Section 4. IMPOSITION AND COLLECTION OF AN ASSESSMENT FOR THE USE
109109 77OF PUBLIC RIGHTS-OF-WAY
110110 78 A. A streaming entertainment operator shall pay an assessment equal to five percent (5%)
111111 79of such streaming entertainment operator’s gross annual revenues derived in from the sale or
112112 80provision of streaming entertainment services to individuals and businesses in the
113113 81Commonwealth.
114114 82 B. The assessment authorized in this section shall be for each year, or part of each year,
115115 83that such streaming entertainment operator is engaged in the sale of streaming entertainment
116116 84services to individuals and businesses in the Commonwealth.
117117 85 C. A streaming entertainment operator shall file bi-annual financial statements reporting
118118 86its gross revenues derived in such period from the sale of streaming entertainment services to
119119 87individuals and businesses in the Commonwealth.
120120 88 1. Financial statements shall be filed with the Department of Revenue and shall not be
121121 89classified as a public record pursuant to Section 1 of Chapter 66; 6 of 13
122122 90 2. financial statements shall contain a complete accounting and itemization of gross
123123 91revenues derived from, or pertaining to, the sale or provision of streaming entertainment services
124124 92to individuals and businesses in the Commonwealth;
125125 93 3. financial statements shall conform to Generally-Accepted Accounting Principles
126126 94(GAAP) and shall be submitted in writing;
127127 95 4. for the period inclusive of January 1 through June 30, a streaming entertainment
128128 96operator shall submit a financial statement on or before August 15. For the period inclusive of
129129 97July 1 through December 31, a streaming entertainment operator shall submit a financial
130130 98statement on or before February 15 of the following year;
131131 99 5. streaming entertainment operators that fail to submit financial statements within thirty
132132 100(30) days of the afore stated deadlines shall be assessed a monetary penalty amount equal to one
133133 101percent (1%) of the gross revenues derived from, or pertaining to, the sale or provision of
134134 102streaming entertainment services to individuals and businesses residing in the Commonwealth
135135 103during the applicable time period;
136136 104 6. streaming entertainment operators that fail to submit financial statements within sixty
137137 105(60) days of the afore stated deadlines shall be assessed a monetary penalty amount equal to two
138138 106percent (2%) of the gross revenues derived from, or pertaining to, the sale or provision of
139139 107streaming entertainment services to individuals and businesses residing in the Commonwealth
140140 108during the applicable time period;
141141 109 7. any monetary penalty assessed upon a streaming entertainment operator for failure to
142142 110submit financial statements before the deadline shall be cumulative to the assessment of five
143143 111percent (5%) of gross revenues. 7 of 13
144144 112 D. Subject to audit and revision pursuant to the Department of Revenue’s authority in
145145 113Section 5, the Department of Revenue shall utilize the financial statement of a streaming
146146 114entertainment operator to assess an amount equal to five percent (5%) of such streaming
147147 115entertainment operator’s gross revenues derived in such period from the sale or provision of
148148 116streaming entertainment service to individuals and businesses in the Commonwealth.
149149 117 E. Upon assessment by written notice of the Department of Revenue, a streaming
150150 118entertainment operator must submit payment to the Commonwealth within thirty (30) days of
151151 119such notice.
152152 120 1. Streaming entertainment operators that fail to submit payment within thirty (30) days
153153 121of the afore stated deadline shall be assessed a monetary penalty amount equal to two percent
154154 122(2%) of the gross revenues derived from, or pertaining to, the sale or provision of streaming
155155 123entertainment services to individuals and businesses in the Commonwealth during the applicable
156156 124time period;
157157 125 2. streaming entertainment operators that fail to submit remuneration of the assessment
158158 126within sixty (60) days of the afore stated deadline shall be assessed a penalty equal to three
159159 127percent (3%) of the gross revenues derived from, or pertaining to, the sale or provision of
160160 128streaming entertainment service to individuals and businesses in the Commonwealth during the
161161 129applicable time period;
162162 130 3. any monetary penalty assessed upon a streaming entertainment operator for failure to
163163 131submit payment before the deadline shall be in addition to the assessment of five percent (5%) of
164164 132gross revenues. 8 of 13
165165 133 F. In accordance with Section 7 of this Act, the Commonwealth, local governments, or
166166 134instrumentalities thereof, may levy additional monetary and legal penalties upon any streaming
167167 135entertainment operator that fails to timely provide written financial statements or remuneration of
168168 136assessments.
169169 137 Section 5. RIGHT TO AUDIT FINANCIAL RECORDS PERTAINING TO
170170 138ASSESSABLE GROSS REVENUES
171171 139 A. The Commonwealth shall have the right to conduct an audit or review of the
172172 140records reasonably related to the sources, amounts and computation of assessable gross revenues
173173 141derived from, or pertaining to, the sale or provision of streaming entertainment service to
174174 142individuals and businesses residing in the Commonwealth within the previous three (3) years.
175175 143 B. Within thirty (30) days of a written request, a streaming entertainment operator shall
176176 144provide the Department of Revenue with copies of financial records related to the review or audit
177177 145of assessable gross revenues derived from, or pertaining to, the sale or provision of streaming
178178 146entertainment services to individuals and businesses residing in the Commonwealth.
179179 147 C. In the event of an alleged underpayment, the Department of Revenue shall provide the
180180 148streaming entertainment operator with a written statement indicating the basis for the alleged
181181 149underpayment. The streaming entertainment operator shall have thirty (30) days from the receipt
182182 150of a statement regarding an alleged underpayment to provide the Department of Revenue any
183183 151written objection to the results of any assessable gross revenue review or audit, including any
184184 152substantiating documentation. Based on this exchange of information, the Department of
185185 153Revenue shall make a final determination of the underpayment(s), if any, within thirty (30) days 9 of 13
186186 154of the streaming entertainment operator’s objection and shall provide the operator with written
187187 155notice of the determination.
188188 156 D. Any additional assessments due to the Commonwealth as a result of the assessable
189189 157gross revenue review or audit shall be paid to the Department of Revenue by the streaming
190190 158entertainment operator within forty-five (45) days from the date of written notification of the
191191 159final decision. If the assessable gross revenue review or audit shows that amounts have been
192192 160underpaid, then the streaming entertainment operator shall pay the underpaid amount plus
193193 161monetary fines equal to ten percent (10%) of the underpayment.
194194 162 E. A streaming entertainment operator adversely affected by any final action, or failure to
195195 163act, of the Department of Revenue that is inconsistent with this section may, within thirty (30)
196196 164days after such action or failure to act, commence an action in any court of competent
197197 165jurisdiction within the Commonwealth. The court shall hear and decide such action on an
198198 166expedited basis.
199199 167 Section 6. STREAMING ENTERTAINMENT FUND
200200 168 A. There shall be a Streaming Entertainment Fund which shall consist of amounts
201201 169credited to the fund in accordance with this section. The fund shall be administered by the state
202202 170treasurer and held in trust exclusively for the purposes of this section. The state treasurer shall be
203203 171treasurer-custodian of the fund and shall have the custody of its monies and securities.
204204 172 B. The Streaming Entertainment Fund shall consist of: (i) revenues collected from the
205205 173assessment imposed by this Act; (ii) revenue from appropriations or other money specifically
206206 174designated to be credited to the fund; (iii) interest earned on money in the fund; and (iv) funds
207207 175from private sources including, but not limited to, gifts, grants and donations received by the 10 of 13
208208 176Commonwealth that are specifically designated to be credited to the fund. Amounts credited to
209209 177the fund shall not be subject to further appropriation and any money remaining in the fund at the
210210 178end of a fiscal year shall not revert to the General Fund. The secretary of the Commonwealth
211211 179shall annually, not later than December 31, report on the activity of the fund to the clerks of the
212212 180Senate and House of Representatives and the Senate and House Committees on Ways and
213213 181Means.
214214 182 C. The Streaming Entertainment Fund shall make bi-annual distributions on March 1and
215215 183September 1 of each year. On those dates, the Streaming Entertainment Fund shall distribute,
216216 184with no remainder left, all monies then held in the Fund according to the following formula:
217217 185 1. One-fifth (1/5) of the monies in the Streaming Entertainment Fund shall be distributed
218218 186to the Commonwealth General Fund;
219219 187 2. Two-fifths (2/5) of the monies in the Streaming Entertainment Fund shall be
220220 188distributed to municipalities and local governments in the Commonwealth and further allocated
221221 189proportionally based upon population;
222222 190 3. Two-fifths (2/5) of the monies in the Streaming Entertainment Fund shall be
223223 191distributed to community media centers in the Commonwealth and further allocated
224224 192proportionally based upon population.
225225 193 D. The Department of Revenue shall use the most recent city and town population
226226 194estimates of the United States Bureau of the Census in calculating distributions pursuant to(C)(2)
227227 195and (C)(3) of this section. 11 of 13
228228 196 E. Distributions pursuant to (C)(2) of this section shall be listed upon each municipality’s
229229 197cherry sheet for the upcoming fiscal year.
230230 198 F. The Commissioner of Revenue or any official responsible, shall, without further
231231 199appropriation and upon certification of the Commissioner, distribute all sums allocated under (C)
232232 200under this section.
233233 201 G. All sums distributed under (C)(1) of this section shall be deposited in the
234234 202Commonwealth General Fund. All sums distributed under (C)(2) of this section shall be
235235 203deposited in the general fund of the respective municipality. All sums distributed under (C)(3) of
236236 204this section shall be deposited in accordance with Section 53F¾ of Chapter 44, as amended by
237237 205Section 8 of this act.
238238 206 H. No expenditures from the Streaming Entertainment Fund shall be made except to
239239 207provide funding for: (i) the operating expenses of the fund; (ii) legal and administrative expenses
240240 208incurred in enforcing the provisions of this Act; and (iii) legal and administrative expenses
241241 209incurred in collecting any assessment due under this act.
242242 210 I. All sums appropriated under this Act shall be expended in a manner reflecting and
243243 211encouraging a policy of nondiscrimination and equal opportunity.
244244 212 J. All officials and employees of an agency, board, department, commission or division
245245 213receiving monies under this Act shall take affirmative steps to ensure equality of opportunity and
246246 214nondiscrimination in the internal affairs of state government, as well as in their relations with the
247247 215public, including those persons and organizations doing business with the Commonwealth. Each
248248 216agency, board, department, commission or division, in spending appropriated sums and
249249 217discharging its statutory responsibilities, shall adopt measures to ensure equal opportunity and 12 of 13
250250 218nondiscrimination in the areas of hiring, promotion, demotion or transfer, recruitment, layoff or
251251 219termination, rates of compensation, in-service or apprenticeship training programs and all terms
252252 220and conditions of employment.
253253 221 Section 7. JUDICIAL REMEDY
254254 222 A. In accordance with Section 1 of Chapter 12, the Attorney General is authorized to
255255 223enforce this Act. The Attorney General may, within seven (7) years, bring an action to recover
256256 224any unpaid assessments and monetary penalties, or enjoin the operations of any non-compliant
257257 225entity, in any court of competent jurisdiction.
258258 226 B. Any local government, or class thereof, or community media center adversely
259259 227impacted by the action, or failure to act, of any streaming entertainment operator under this Act,
260260 228may, within seven (7) years, bring an action to recover any unpaid assessments and monetary
261261 229penalties, or enjoin the operations of any non-compliant entity, in any court of competent
262262 230jurisdiction.
263263 231 SECTION 2. Municipal streaming fund.
264264 232 Section 53 F3/4 of Chapter 44 of the General Laws shall be amended by adding at the
265265 233end thereof the following new section: -
266266 234 “Notwithstanding section 53 or any other general or special law to the contrary, a
267267 235municipality that accepts this section may establish in the treasury a separate revenue account to
268268 236be known as the PEG Access and Streaming Entertainment Funds, into which may be deposited
269269 237funds received in connection with assessments derived from streaming entertainment providers. 13 of 13
270270 238Monies in the fund shall only be appropriated to support public, educational or governmental
271271 239access media centers.”
272272 240 SECTION 3. This act shall take effect on January 1, 2025.