MN SF3930

Local units of government must impose a 5 percent PEG (public, educational, governmental) programming fee on digital video service providers' gross revenues from digital entertainment services sold to Minnesota subscribers.

Digital video service providers must pay fees quarterly within 45 days after each calendar quarter closes and submit documentation of revenues used to calculate payments.

Providers failing to remit fees within 30 days face penalties starting at 2 percent of gross revenues, with additional 1 percent penalties per 30-day delay up to 5 percent total; fraudulent non-payment penalties can reach 100 percent.

Collected fees may be used for capital or operating expenses related to PEG programming and local community communications technology needs, with documentation required under Governmental Accounting Standards Board standards.

Exemption applies to providers earning less than $250,000 in Minnesota gross revenues during the previous calendar year; direct broadcast satellite providers are included in the definition of digital video service providers.