§  76.42   In-kind contributions.

   (a) In-kind, cable-related contributions are “franchise fees” subject
   to the five percent cap set forth in 47 U.S.C. 542(b). Such
   contributions, which count toward the five percent cap at their fair
   market value, include any non-monetary contributions related to the
   provision of cable service by a cable operator as a condition or
   requirement of a local franchise, including but not limited to:

   (1) Costs attributable to the provision of free or discounted cable
   service to public buildings, including buildings leased by or under
   control of the franchising authority;

   (2) Costs in support of public, educational, or governmental access
   facilities, with the exception of capital costs; and

   (3) Costs attributable to the construction of institutional networks.

   (b) In-kind, cable-related contributions do not include the costs of
   complying with build-out and customer service requirements.

   [ 84 FR 44750 , Aug. 27, 2019]