There is hereby established and imposed, a fee to support PEG channel facilities,
upon and payable by any holder of a state franchise to provide video services. The
fee shall be one percent of the holder's gross revenues, as determined pursuant to
the Act, if there is no incumbent cable operator. If there is one or more incumbent
cable operator, the fee shall be the greater of one percent of the holder's gross
revenues, as determined pursuant to the Act, or the higher of the per subscriber PEG
channel facility fee imposed upon the incumbent cable operators, not to exceed three
percent of gross revenues, as determined pursuant to the Act.
