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This section directs the FCC 10 submit a report to Congress oil the impact of state video service franchising laws since 2005 on PEG use of cable systems. The section also N(JUll'eS that In states that have enacted state-level fralichising laws since Nlay 31. 2005, PEG channels would continue to receive financial and infrastrLlcttire support and channel capacity based on the support historically provided by the cable provider. Specifically: • Financial support WOUld be calculated as the greater•of the support provided in the calendar year prior-to the state video service franchising law, or the average annual sul)port over the term of the franchise agreement. • infrastructure support would be the facilities required to continue to carry the PEG channels from their point of origin to subscribers without material degradation or loss of content. • Each operator-would provide at least the same amount of PEG channel capacity that it Nvas required to provide as of May 31. 2005. If there Nvere no PEG charulel capacity requirements in a particular-locality as of that date, the State law requirements xvould apply. [Possible addition: Support means all support, including in-kind support to the extent an operator is no longer providing in-kind support on the same basis It ,tixas being provided before the state-level franchising law went into effect.] The FCC would be responsible for settling clisputes over amounts otived. Franchise Fee DeLinitiorl Section 622(g)(2)(C) of the CUrn1 III Ullications Act of 1934 makes clear that cash paid to a franchising anti101•ity for PEG``capital costs"are not counted against the franchise fee. Oil December 201, 20061, the FCC issued a rule that found that cash paid by an operator and paid to a franchising authority to support the use of PEG facilities. such as staff salaries is counted against the franchise fee. . To prevent this limited interpretation for the use of financial support. this section overturns the FCC iliterpretatiorl, and makes clear that financial support provided for PEG is not to be counted, or offset, against the franchise fee, whether-used for PEG capital or operating costs. Cable Service Definition This section amends Section 602(6) of the Communications Act to clarify that the definition of cable service is technology and transmission-protocol neutral. As a result. it makes it clear that the requirements of the Cable Act apply to systems that use traditional cable transmission technologies, as Nvell as those that rise digital transmission protocols, including. but Ilot limited to, IP protocols, to deliver video progranimirlg or other programming services to subscribers.