# Sec. 5A-111. Franchise fee

Codified through Bill No. CB-018-2026, adopted May 12, 2026, effective July 24, 2026. Source: Municode, Supplement 2026 Update 2. Editorial notes and legislative history omitted.

## Sec. 5A-111. Franchise fee

Prince George's County, Md., Code § 5A-111 (2026)

(a) The County finds that public rights-of-way of the County to be used by a franchisee for the operation of a cable system are valuable public property acquired and maintained by the County. The County further finds that the grant of a franchise to use public rights-of-way is a valuable property right without which a franchisee would be required to invest substantial capital.

(b) Each franchisee shall pay a franchise fee of five percent (5%) of gross revenues.

(c) The franchisee shall file with the County, within thirty (30) days after the expiration of each of the franchisee's fiscal quarters, a financial statement clearly showing the gross revenues received by the franchisee during the preceding quarter. The quarterly portion of the franchise fee shall be payable to the County at the time such statement is filed.

(d)

  (1) Payment of the franchise fee shall not be considered in the nature of a tax or in lieu of other taxes or fees of general applicability imposed by the County.

  (2) The franchise fee is in addition to all other taxes and payments that a franchisee may be required to pay under its franchise agreement or any Federal, State, or local law, and to any other tax, fee, or assessment imposed by utilities and cable operators for use of their services, facilities, or equipment, including any applicable amusement taxes, except to the extent that such fees, taxes, or assessments must be treated as a franchise fee under Section 642 of the Cable Act, 47 U.S.C. Section 522.

  (3) No franchisee may designate the franchise fee as a tax in any communication to a subscriber.

(e) In the event any franchise fee payment or recomputed amount is not made on or before the required date, the franchisee shall pay additional compensation and interest charges computed from such due date, at an annual rate equal to the commercial prime interest rate of the County's primary depository bank during the period such unpaid amount is owed, in addition to any applicable penalties or liquidated damages.

(f)

  (1) The County shall have the right to inspect records, to require a franchisee to provide copies of records at the franchisee's expense, and to audit and to recompute any amounts determined to be payable, whether the records are held by the franchisee, an affiliate, or any other entity that collects or receives funds related to the franchisee's operation in the County, including, by way of illustration and not limitation, any entity that sells advertising on the franchisee's behalf, for a period of five years from the date a payment was made or, if no payment was made, from the date the County believes payment was owed, after which time all payments are final.

  (2) A franchisee shall be responsible for providing to the County all records necessary to confirm the accurate payment of franchise fees, without regard to by whom they are held. Such records shall be made available pursuant to the requirements of this Subtitle. The franchisee shall maintain such records for the term of its franchise agreement, and any renewals or extensions thereof.

  (3) The County's audit expenses shall be borne by the County unless the audit discloses an underpayment of five percent (5%) or more of the amount due, in which case the costs of the audit shall be borne by the franchisee as a cost incidental to the enforcement of the franchise. Any additional amounts due to the County as a result of the audit shall be paid within thirty (30) days following written notice to the franchisee by the County of the underpayment, which notice shall include a copy of the audit report. If recomputation results in additional revenue to be paid to the County, such amount shall be subject to a ten percent (10%) interest charge.

(g) No acceptance of any payment by the County shall be construed as a release or an accord and satisfaction of any claim the County may have for further or additional sums due or for the performance of any other obligation of a franchisee, or as an acknowledgment that the amount paid is the correct amount due.

(h) This Subtitle shall not be applicable to municipally-controlled public ways. However, any municipality may be included in the County's cable system. Upon application of the franchisee accompanied by a resolution from the municipality authorizing the extension pursuant to the provisions of this Subtitle, the Commission may extend a service area to include the area of the municipality delineated in the aforementioned application. When so approved by the Commission, all the terms and provisions of this Subtitle shall apply to the area of the municipality so designated. The County shall pay each municipality participating in the County system a share of the franchise fee revenues which the County receives from the franchisee. Said share shall be an amount equivalent to two-and-a-half percent (2.5%) of the gross revenues attributable to outlets within the municipality.