Chairman Pai's response regarding franchise fee cap on PEG funding

On Nov 27, Federal Communications Commission Chairman Ajit Pai's responded to various Democratic Sens regarding the impact of statutory cap franchise fees on funding for Public, Educational or Government (PEG) channels. Responses were sent to Sens Ed Markey (D-MA), Tammy Baldwin (D-WI), Maggie Hassan (D-NH), Ben Cardin (D-MD), Jeff Merkley (D-OR), Bernie Sanders (I-VT), Gary Peters (D-MI), Ron Wyden (D-OR), Patrick Leahy (D-VT), Richard Blumenthal (D-CT), and Elizabeth Warren (D-MA).

Chairman Pai wrote that the FCC sought out to consider the scope of the congressionally-mandated statutory limit on franchise fees in its Second Further Notice of Proposed Rulemaking. "Among other things, the Commission observed that Congress broadly defined franchise fees: indeed, with respect to PEG channels, it only excluded support payments with respect to franchises granted prior to October 30, 1984 as well as capital costs required by franchises granted after that date," he wrote. "The record of this proceeding remains open, and I encourage all interested parties and stakeholders— including local franchising authorities—to provide us with relevant evidence regarding these issues so that the Commission can make the appropriate judgment about the path forward, consistent with federal law."