HomeMy WebLinkAboutItem 6.1 CableTV&ConsumrProtectAct (2)
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CITY OF DUBLIN
AGENDA STATEMENT
CITY COUNCIL MEETING DATE:
SUBJECT: Public Hearing: Adopting Regulations in Compliance with the Cable
Television and Consumer Protection Act of 1992.
~ (Prepared by: Bo Barker, Management Assistant)
EXHIBITS ATTACHED: 1./ Draft Ordinance
2./ FCC Regulations
3. / General Information Handout on the Cable Act
RECOMMENDATION: 1.
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5.
Open Public Hearing
Accept Public Testimony
Close Public Hearing
Deliberate and Introduce the Ordinance
Notify Viacom Cablevision of these Regulations
FINANCIAL STATEMENT:
There will be a cost for review of the cable operator's rate application
which depends on the scope of the rate application and is therefore
unknown at this time. The cost will be split between the Cities of
Livermore, Pleasanton, San Ramon and Dublin.
DESCRIPTION: On October 5, 1992, Congress enacted the Cable Television Consumer Protection
and Competition Act of 1992. The Act allows cable systems not subject to effective competition to be
regulated. In accordance with regulations prescribed by the Federal Communications Commission
(FCC), franchising authorities, such as cities, may regulate basic cable service rates, charges for related
equipment and establish customer service standards that are consistent with the FCC regulations.
Rates for premium channels and pay-per-view channels are not regulated. Rates for all other cable
programming (i.e. Satellite Value package) are subject to regulation by the FCC.
In order to regulate, the City must be certified by the FCC. The City became certified on November 10,
1993. The City must now hold public hearings and adopt local regulations consistent with the FCC
regulation within 120 days of certification, or by March 10, 1994.
Adopting an Ordinance
The FCC has issued detailed regulations, and has required that franchising authorities that are
certified must adopt local regulations consistent with the FCC regulations. It is not necessary that the
City adopt different regulations from those already issued by the FCC. Although any franchising
authority could adopt stricter regulations, such actions may result in legal challenges from the Cable
company or increased costs that could be passed through to the cable customers.
The proposed ordinance amends Title 3, Chapter 20 of the Dublin Municipal Code - Cable Television
and Communication System. The attached resolution (Exhibit 1) adopts the detailed FCC regulations,
including customer service standards by reference. This methodology was developed and
recommended by NATOA (National Association of Telecommunications Officers and Advisors), a
national governmental telecommunications group.
Exhibit 2 is a copy of the FCC regulations which covers rate regulation and customer service standards.
Additionally, staff has included a brief description of the Cable Act (Exhibit 3) drafted in order to assist
the public with understanding how the City is impacted by this new law.
The City of Livermore has adopted the regulations while the Cities of Pleasanton and San Ramon are
hearing the issue concurrently. I
It is recommended the City Council introduce this ordinance that provides for the regulation of basic
cable service and customer service standards of the Cable Television System. The City is also required
to notify the cable operator of this action.
COPIES TO: Michal Houston, Viacom Cablevision
ITEMNO.~
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ORDINANCE NO. - 94
AN ORDINANCE OF THE CITY COUNCIL
OF THE CITY OF DUBLIN
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AMENDING MUNICIPAL CODE CHAPTER 3.20 (CABLE TELEVISION FRANCHISE)
TO PROVIDE FOR THE REGULATION OF BASIC SERVICE TIER RATES AND
RELATED EQUIPMENT, INSTALLATIONS AND SERVICE CHARGES AND
CUSTOMER SERVICE STANDARDS OF ANY CABLE TELEVISION SYSTEM
OPERATING IN THE CITY OF DUBLIN
WHEREAS, On November 12, 1985, the City adopted Ordinance No. 30-85, the City of Dublin
Cable Television Franchise Ordinance; and
WHEREAS, Effective January I, 1986, the City (as "Grantor") and Tele-Vue Systems, Inc.,
doing business as Viacom Cablevision, of Viacom International, Inc. ("Viacom") entered into an
agreement whereby the City granted to Viacom a non-exclusive franchise to operate a cable
television system in the City; and
WHEREAS, On October 5, 1992, the United States Congress enacted the Cable Television
Consumer Protection and Competition Act of 1992 which, among other things, provided that a
franchising authority may regulate basic service rates and charges and customer service standards in
accordance with Federal Communications Commission (FCC) regulations; and
WHEREAS, On April 1, 1993, the FCC prescribed such regulations, which are set forth at 47
CFR (Code of Federal Regulations) 76.900 - 76.985 and 76.309 (the "FCC Cable Regulations").
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Dublin does
hereby amended Title 3, Chapter 20, of the Dublin Municipal Code by adding a new Section to read
as follows:
Section 1 - FCC Cable Regulations
3.20.335 shall be added to the DMC to read as follows:
a. Incorporation of FCC Cable Regulations
Grantor hereby adopts and incorporates by reference the FCC Cable Regulations
implementing the Cable Television Consumer Protection and Competition Act of 1992 (47
U.S.c. 521 et seq.), including but not limited to those rules and regulations regarding rate
regulation as set forth in 47 CFR 76.900 t076.985 and regarding customer service standards as
set forth in 47 CFR 76.309. Amendments to FCC rules and regulations implementing the
Cable Act of 1992 made after the effective date of this section shall also be incorporated by
reference without further legislative action by the Grantor.
The FCC Cable Regulations supersede any different or inconsistent provisions in the Chapter
3.20 or in the franchise granted under it.
b. Implementation
Grantor shall implement the FCC Cable Regulations in the City with the existing Grantee and
any future franchisees. In implementing the Regulations, Grantor will ensure a reasonable
opportunity for consideration of the views of interested parties."
Exhibit 1
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Section 2 - Effective Date and Posting of Ordinance
This Ordinance shall take effect and be in force 30 days after its adoption. The City Clerk of the City
of Dublin shall cause this Ordinance to be posted in at least three (3) public places in the City of
Dublin in accordance with Section 36933 of the Government Code of the State of California.
PASSED, APPROVED AND ADOPTED this. . .. day of'
AYES:
NOES:
ABSENT:
, 1994.
Mayor
ATTEST:
City Clerk
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FCC CABLE REGULATIONS
on
Rate Regulation and Olstomer SeIVice Standards
Issued Pursuant to
CABLE TELEVISION CONSUMER PROTECTION
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AND COMPETITION ACT OF 1992
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FCC Cable Television Regulations Pursuant to 1992 Act
Table of Contents
Subpart N -- Cable Rate Regulation . . . . . . . . . . . . . . . . . . . . . . .. Page 1
fi76.900 Temporary rreeze of cable rates. . . . . . . . . . . . . . . . .. Page 1
fi76.901 Definitions. ................................ Page 1
(a) Basic service. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. Page 1
(b) Cable programming service. . . . . . . . . . . . . . . . . . . .. Page 1
(c) Small system. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. Page 2
fi76.905 Standards for identification of cable systems subject to
effective competition. . . . . . . . . . . . . . . . . . . . . . . . . .. Page 2
fi76.906 Presumption of no effective competition. . . . . . . . . . .. Page 4
~76.910 Franchising authority certification. . . . . . . . . . . . . . .. Page 4
fi76.911 Petition for reconsideration of certification. ........ Page S
fi76.912 Joint certification. ........................... Page 6 a
fi76.913 Assumption of jurisdiction by the Commlsslon. . . . . .. Page 7 ..
fi16.914 Revocation or certification. .. . . . . . . . . . . . . . . . . . .. Page 1
fi76.915 Change In status of cable operator. . . . . . . . . . . . . . . . Page 8
fi76.916 Petition for recertification. ..................... Page 9
fi76.920 Composition or the basic tier. . . . . . . . . . . . . . . . . . . . Page 9
fi76.921 Buy.tbrough of other tiers prohibited. . . . . . . . . . . .. Page 10
~76.922 Rates for the basic service tier and cable programming
services tiers. .............................. Page 10
(a) Basic and cable programming service tier rates. . . .. Page 10
(b) Initial pennitted per channel charge. ............ Page 11
(c) Subsequent permitted per channel charge. ........ Page 12
(d) Price cap requirements. . . . . . . . . . . . . . . . . . . . . .. Page 12
(1) IoDation adjustments. . . . . . . . . . . . . . . . . . . .. Page 12
(2) External costs. ......................... Page 12
fi76.923 Rates for equipment and installation wed to receIve the
basic service tier. .............. ~ . . . . . . . . . . .. Page 14
(a) Scope. ................................... Page 14 a
(b) Unbundllng. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. Page 14 ..
(c) Equipment basket. .......................... Page 14
(d) Hourly service charge. ....................... Page 14
(e) Installation charges. . . . . . . . . . . . . . . . . . . . . . . . .. Page 15
(f) Remote charges. .. . . . . . . . . . . . . . . . . . . . . . . . . .. Page 15
(g) Other equipment charges. .................... Page 15
(b) Additional connection charges. . . . . . . . . . . . . . . . .. Page 15
(I) Charges for equipment sold. ................ . .. Page 16
0) Promotions. ............................... Page 16
(k) Francbise fees. . . . . . . . . . . . . . . . . . . . . . . . . . . . .. Page 16
As of August, 1993
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FCC Cable Television Regulations Pursuant to 1992 Act
~76.924 Cost accounting and cost allocation requirements. . .. Page 16
(8) Applicability. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. Page 16
(b) GeneraUy accepted accounting principles. . . . . . . . .. Page 16
(c) Accounts required. ............ . . . . . . . . . . . . .. Page 17
(d) Accounting level. ........................... Page 17
(e) Cost aUocation requirements. . . . . . . . . . . . . . . . . .. Page 17
<0 Cob1D1on costs. .. . . . . . . . . . . . . . . . . . . . . . . . . . .. Page 18
(g) Unrelated expenses and revenues. . . . . . . . . . . . . . .. Page 18
(h) Part-time channels. ......................... Page 18
fi76.925 Costs or francblse requirements. . . . . . . . . . . . . . . .. Page 18
fi76.930 Initiation or review of basic cable service and equipment
rates. .................................... Page 19
fi76.931 Notification of basic tier availability. . . . . . . . . . . . .. Page 19
fi76.932 Notification or proposed rate increase. ........... Page 19
fi76.933 Franchising authority review of basic cable rates and
equipment costs. . . . . . . . . . . . . . . . . . . . . . . . . . . .. Page 19
~76.934 Small systems. ... . . . . . . . . . . . . . . . . . . . . . . . . .. Page 20
fi76.935 Participation of interested parties. .............. Page 21
'fi76.936 Written decision. ........................... Page 21
~76.937 Burden or proof. . . . . . . . . . . . . . . . . . . . . . . . . . . .. Page 21
~76.938 Proprietary information. . . . . . . . . . . . . . . . . . . . . .. Page 22
i76.940 Prospective rate reduction. .. . . . . . . . . . . . . . . . . .. Page 22
f76.941 Rate prescription. . . . . . . . . . . . . . . . . . . . . . . . . . .. Page 22
fi76.942 Refunds. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. Page 22
176.943 Fines. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. Page 23
f76.944 Commission review of rrancbising authority decisions on
rates for the basic service tier and associated equipmenP.age 23
fi76.945 Procedures for Commlssion on review of basic service
. rate. ..................................... Page 24
fi76.950 Complaints regarding cable programming service ratesPage 25
fi76.951 Standard complaint ronn; other riling requirements.. Page 25
fi76.952 Information to be provided by cable operator on monthly
subscriber bills. ... '. . . . . . . . . . . . . . . . . . . . . . . .. Page 27
~76.953 Umitation on fiUng a complaint. ............... Page 27
(8) Complaint regarding 8 rate in effect on June 21, 1993. Page 27
(b) Complaint recording a rate increase. ............ Page 27
i76.954 Initial review or complaint; minimum showing requirement;
dismissal of defective complaints. ............... Page 27
fi76.955 Additional opportunity to file corrected complaint. .. Page 28
i76.956 Cable operator response. ....:................ Page 28
fi76.957 Commission adjudication of the complaint. . . . . . . .. Page 30
i76.960 Prospective rate reductions. ................... Page 30
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FCC Cable Television Regulations Pursuant to 1992 Act
176.961 Refunds. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. Page 30
fi76.962 Implementation and certification of compllance. .... Page 31
(a) Implementation. . . . . . . . . . . . . . . . . . . . . . . . . . . .. Page 31
(b) Certification of compliance. ................... Page 31
f76.963 Fonelture. ................................ Page 31
f76.964 Advance written notification of rate Increases. . . . . .. Page 32
f76.970 Commercial leased access rates. ....... . . . . . . . .. Page 32
176.971 Commercial leased access terms and conditions. . . .. Page 33
176.975 Commercial leased access dispute resolution. ...... Page 34
fi76!J77 Minority and educational programming used In Ueu or
deregulated commercial leased access capacity. ..... Page 35
176.980 Charges for customer changes. ................. Page 36
176.981 Negative option billing. . . . . . . . . . . . . . . . . . . . . . .. Page 37
176.982 Continuation or rate agreements. ............... Page 37_
fi76.983 Discrimination. ............................ Page 3bW
f76.984 GeographicaUy uniform rate structure. . . . . . . . . . .. Page 38
f76.985 Subscriber bill itemization. . . . . . . . . . . . . . . . . . . .. Page 38
Subpart -" Consumer Protection and CUstomer Service ......... Page 40
fi76.309 Customer Service ObUgations . . . . . . . . . . . . . . . . .. Page 40
Subpart L - Cable Television Access ...................... Page 45
fi76.701 Leased Access Channels. ..................... Page 45
f76.702 Publlc, Educational and Governmental Access. ..... Page 46
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As of August, 1993
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FCC Cable Television Regulations Pursuant to 1992 Act
Part 76 CABLE TELEVISION SERVICE
Subpart N - Cable Rate Regulation
~76.900 Temporary freeze of cable rates.
(a) The average monthly subscriber bill for services provided by cable
operators subject to regulation under Section 623 of the Communications Act
shall not increase above the average monthly subscn"ber bill determined under
rates in effect on April 5, 1993, until November 15, 1993.
(b) The average monthly subscriber bill shall be calculated by determining for
a monthly billing cycle the sum of aU billed monthly charges for all cable a
seIVices subject to regulation under Section 623 of the Communications Act _
and dividing that sum by the number of subscribers receiving any of those
services. The average monthly subscriber bill determined under rates in effect
on April 5, 1993, shall be calculated based on customer charges for the most
recent monthly billing cycle ending prior to April 5, 1993.
~76.901 Definitions.
(a) Basic service. The basic seIVice tier shall, at a minimum, include all signals
of domestic television broadcast stations provided to any subscriber (except a
signal secondarily transmitted by satellite carrier beyond the local service area
of such station, regardless of how such signal is ultimately received by the
cable system) any public, educational, and governmental programming
required by the franchise to be carried on the basic tier, and any additional
video programming signals a service added to the basic tier by the cable
operator.
(b) Cable programming service. Cable programming service includes any video e
programming provided over a cable system regardless of service tier, including
installation or rental of equipment used for the receipt of such video
programming, other than:
(1) Video programming carried on the basic service tier as defmed in this
section;
(2) Video programming offered on a pay-per-channelor pay-per-program
basis; or
As of August, 1993
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FCC Cable Television Regulations Pursuant to 1992 Ad
(3) A combination of multiple channels of pay-per-channelor pay-per-
program video programming offered on a multiplexed or time-shifted
basis so long as the combined service:
(i) Consists of commonly-identified video programming; and
(il) is not bundled with any regulated tier of seIVice.
(c) Small system. A small system is a cable television system '.
that selVes fewer than 1,000 subscribers. The service area of a small system
shall be detennined by the number of subscribers that are selVed by a system's
principal headend. including any other headends or microwave receive sites
that are, technically integrated to the system's principal headend.
~76.90S Standards for identfficatlon of cable systems subject to effective
competition.
(a) Only the rates of cable systems that are not subject to effective
competition may be regulated.
(b) A cable system is subject to effective competition when anyone of the
following conditions is met:
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(1) Fewer than 30 percent of the households in its franchise, area
subscribe to the cable seIVice of a cable system.
(2) The franchise area is:
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(i) SelVed by ~t 'le~~t 1 tw~ unaffiliated multichannel video
programming distributors each of which offers comparable
programming to at least 50 percent of the households in the
franchise area; and
(il) The number of households subscribing to multich~nnel video
programming other than the largest multichannel video
programming distributor exceeds 15 percent of the households in the
franchise area.
(3) A multichannel video programming distributor, operated by the
franchising authority for that franchise area, offers video programming to
at least 50 percent of the households in the franchise area.
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FCC Cable Television Regulations Pursuant to 1992 Act
(c) Each separately billed or billable customer will count as a household
subscribing to or being offered video programming seIVices, with the exception
of multiple dwelling buildings billed as a single customer. Individual units of
multiple dwelling buildings will count as separate households.
(d) A multichannel video program distributor, for putposes of this section, is
an entity such as, but not limited to, a cable operator, a multichannel
multipoint distn"bution service, a direct broadcast satellite service, a television
receive-only satellite program distributor, a video dialtone seIVice provider, or
a satellite master antenna television seIVice provider that makes available for
purchase, by subscn"bers or customers, multiple channels of video
programming.
(e) Service of a multichannel video programming distributor will be deemed _
offered:, _
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(1) When the multichannel video programming distributor is physically
able to deliver seIVice to potential subscribers, with the addition of no or
only minimal additional investment by the distn"butor, in order for an
individual subscriber to receive seIVice; and
(2) When no regulatoty, technical or other impediments to households
taking seIVice exist, and potential subscribers in the franchise area are
reasonably aware, that they may purchase the services of the multichannel
, video prograriuning distributor.
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(I) For purposes of determining the number of households subscribing to the
seIVices of a multichannel video programming distributor other than the
largest multichannelvideo programming distributor, under paragraph (b )(2)(11)
of this section, the number of subscribers of all multichannel video
programming distributors 'that offer service to at least SO percent of the
households in the ~a~c~ area will be aggregated. e
(g) In 'order to offer comparable programming within the meaning of
paragraph (b)(2)(i) of this section, a competing multichannel video
programming distributor must offer at least 12 channels of video programming,
including at least one channel of nonbroadcast selVice programming.
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FCC Cable Television Regulations Pursuant to 1992 Act
~76.906 Presumption of no effective competition.
In the absence of a demonstration to the contrary, cable systems are presumed
not to be subject to effective competition.
~76.910 Franchising authority certification.
(a) A franchising authority must be certified by the Commission in order to
regulate the basic setvice tier and associated equipment of a cable system
within its jurisdiction.
(b) To be certified, tbe franchising authority must file with the Commission a
written certification that:
(1) The franchising authority will adopt and administer regulations with
respect to the rates for the basic setvice tier that are consistent with the
'regulations prescribed by the Commission for regulation of the basic
service tier;
(2) The franchising authority has the legal authority to adopt, and the
personnel to administer, such regulations;
(3) Procedural laws and regulations applicable to rate regulation
proceedings by such authority provide a reasonable opportunity for
consideration of the views of interested parties; and
(4) The cable system in question is not subject to effective competition.
Unless a franchising authority has actual knowledge to the contrary, the
franchising authority may rely on the presumption in g 76.906 that the
cable operator is not subject to effective competition.
(c) The written certification described in paragraph (b) of this section shall be
made by filing the FCC form designated for that purpose. The form must be
flled by
(1) Registered mail, return receipt requested. or
(2) Hand delivery to the Commission and a date-stamped copy obtained.
The date on the return receipt or on the date-stamped copy is the date
filed.
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FCC Cable Television Regulations Pursuant to 1992 Act
(d) A copy of the certification form described in paragraph (c) of this section
must be served on the cable operator before or on the same day it is ftled with
the Commission.
(e) Unless the Commission notifies the franchising authority otherwise~ the
certification will become effective 30 days after the date filed. provided,
however, that the franchising authority may not regulate the rates of a cable
system unless it:
(1) Adopts regulations:
(i) Consistent with the Commission's regulations governing the basic
tier; and e
(ll) Providing a reasonable opportunity for considerat~on of the
views of interested parties, within 120 days of the effective date of
certification; and
(2) Notifies the cable operator that the authority has been ce~ified ~nd
has adopted the regulations required by paragraph (e)(I) of this section.
(f) If the Commission denies a fra~chising aut~ority's certific~ti.on, the
Commission will notify the franchising authonty of any revulOns or
modifications necessary to obtain approval.
~76.911 Petition ror reconsideration or certification.
(a) A cable operato~ (or other interes~ed party) may ~haUe~e a franchis~g
authority's certificatIOn by filing a petition for reconslderahon. The petition
may allege either of the following: e
(1) The cable operator is not subject to rate regulation because effective
competition exists as derwed in ~ 76.905.
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(2) The franchising authority does not meet the certillcationstandards! I
forth in 47 U.S.C. ~ 543(a)(3).
(b) (1) The cable operator bears the burden of rebutting the presumpti~n
that effective competition does not exist with evidence that effectiVe
competition, as defined in ~ 76.905, exists in the franchise area.
As of August, 1993
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FCC Cable Television Regulations Pursuant to 1992 Act
FCC Cable Television Regulations Pursuant to 1992 Act
(2) For purposes of paragraph (a)(I) of this section, if the evidence
establishing effective competition is not otherwise available cable
operators may request from a competitor information regarding the
competitor's reach and number of subscribers. A competitor must
respond to such request within 15 days. Such responses may be limited
to numerical totals.
cable systems and regardless of whether the rates in each franchising area are
uniform.
(2) A petitioner filing pursuant to paragraph (a)(2) of this section may
request a stay of rate regulation.
fi76.913 Assumption of Jurisdiction by the Commission.
(a) Upon denial or revocation of the franchising authori~s certific~tion, the
Commission will regulate rates for cable servic~~ and assoctate~ equtpment?f
a cable system not subject to effective compettti?D; as d:fined ~ ~ 76.9?5, tn
a franchise area. Such regulation by the COPlD11Sston will contwue until the
franchising authority has obtained certification or recertification.
(b) A franchising authority unable to meet ce~cation stan~rds may pet~tion ..
the Commission to regulate the rates for baste cable semce and assoctated _
equipment of its franchisee when:
(1) The franchising authority lacks the resources to administe~ rate
regulation; provided, however, that tbe request must be accompa~:d by
a demonstration that franchise fees are insufficient to fund any additional
activities required to administer basic service rate regulation; or
(c) Stay of rate regulation.
(1) The filing of a petition for reconsideration pursuant to paragraph
(a)(I) of this section will automatically stay the imposition of rate
regulation pending the outcome of the reconsideration proceeding.
(3) In any case in which a stay of rate regulation has been granted, if the
petition for reconsideration is denied, the cable operator may be required
to refund any rates or portion of rates above the permined tier charge
which were collected from the date the petition was filed.
(d) The ftling of a petition for reconsideration alleging the presence of
effective competition based on frivolous grounds is prohibited, and may be
subject to forfeitures.
(e) If the Commission upholds a challenge to a certification rued pursuant to
paragraph (a)(2) of this section, the Commission will notify the franchising
authority of the revisions necessary to secure approval and provide the
authority an opportunity to amend its certification however necessary to secure
approval. provided, however, that pending approval of certification, the
Commission will assume jurisdiction over basic cable seIVice rates in that
franchise area.
(2) The franchising authority lacks the legal au~hority to regu~ate. ba~ic
service rates; provided, however, that the authonty ~ust su.bmlt WIth Its
request a statement detailing the nature of the legal infinmty.
(c) The Commission will regulate basic service rates pursuant to this Section
until the franchising authority qualifies to exercise jurisdiction pursuant to ~
76.916.
(a) Franchising authorities may apply for joint certification and may engage
in joint regulation, including but not limited to, joint hearings, data collection,
and ratemaking. Franchising authorities jointly certified to regulate their cable
system(s) may make independent rate decisions.
!i76.914 Revocation or certification. e
(a) A franchising authority's certification shall be revoked if:
(1) After the franchising authority has been given a reasonable
opportunity to comment, it is detennined that .sl?te ,and local laws ~nd
regulations do not conform to the CODlDllSslon s rate regulatiOns
governing cable rates, n 76.922 through 76.925.
(2) After being given an opportunity to cure the defect, a franchising
authority fails to fulfill one of the three conditions for certification, set
forth in 47 U.s.C. ~ 543(a)(3), or any of the provisions of ~~ 76.910(b).
fi76.9U Joint certification.
(b) Franchising authorities may apply for joint certification regardless of
whether the authorities are served by the same cable system or by different
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(b) In all cases of revocation, the Commission will assume jurisdiction over
basic service rates until an authority becomes recertified. The Commission will
also notify the franchising authority regarding the corrective action that may
be taken.
(c) A petition for revocation must be served on the franchising authority and
contain a statement that service was made. The franchising authority may file
an opposition within 30 days of filing of the petition. A reply may be rued
within 15 days of filing of the opposition.
(d) While a petition for revocation is pending, and absent grant of a stay, the
franchising authority may continue to regulate the basic service rates of its
franchisees.
~76.91S Change in status or cable operator.
(a) A cable operator that becomes subject to effective competition, may
petition the franchising authority for change in its regulatory status. The
operator bears the burden of proving the existence of effective competition.
Oppositions may be filed within 15 days of public notice of the filing of the
petition, and must be served on the operator. Cable operators may reply
within 7 days of filing of oppositions.
(b) Franchising authority decisions on petitions for change in status must be
made within 30 days after the pleading cycle set forth in paragraph (a) of this
section closes. Franchising authorities must notify the Commission within ten
days of any decision changing status. Unless the Commission receives an
opposition to such change in status, the decision will become final 30 days
after adoption by the franchising authority.
(c) After an initial determination of the franchising authority that effective
competition exists becomes final, the franchising authority will then cease
regulating basic cable seIVice rates, and the Commission's regulatory authority
over cable programming services for the system in the franchise area will also
cease.
(d) A cable operator and a franchising authority may submit a joint statement
that effective competition exists. The joint statement must stipulate which of
the three statutory tests for effective competition has been met and explain
how tbe test has been satisfied. These joint statements will become final
decisions within 30 days of filing with the Commission, unless challenged by
an interested party.
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(e) Cable operators denied a change in status by a franchising authority may
seek review of that finding at the Commission by filing a petition for
revocation.
(f) In cases where a local franchising authority has not been certified to
regulate rates, a cable operator may petition the Commission for change in its
regulatory status. The time periods in paragraph (a) of this section will apply
to oppositions and replies concerning these petitions.
~76.916 Petition for recertification.
(a) After its request for certification has been denied or its existing
certification has been revoked. a franchising authority wishing to assume"
jurisdiction to regulate basic service and associated equipment rates must me -
a "Petition for Recertification" accompanied by a copy of the earlier decision
denying or revoking certification.
(b) The petition must:
(1) Meetthe requirements set forth in 47 U.S.C. ~ 543(a)(3);
(2) State that the cable system is not subject to effective competition; and
(3) Contain a cleaT showing, supported by either objectively verifiable
data such as a state statUte, or by affidavit, that the reasons for the
earlier denial or revocation no longer pertain.
(c) The petition must be served on the cable operator and on any interested
party that participated in the proceeding denying or revoking the original
certification.
(d) Oppositions may be filed within 15 days after the petition is filed, anft
must be served on the petitiooer. Replies may be filed within seven days of
filing of oppositions, aod must be served on the opposing party(ies).
fi76.920 ComposUion or the basic tier.
Every subscriber of a cable system must subscribe to the basic tier in order to
subscribe to any other tier of video programming or to purchase any other
video programming.
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~76.921 Buy-through or other tiers prohibited.
(a) No cable system operator may require the subscription to any tier other
than the basic service tier as a condition of subscription to video programming
offered on a per channel or per program charge basis. A cable operator may,
however, require the subscription to one or more tiers of cable programming
sexvices as a condition of access lO one or more tiers of cable programming
services.
(b) A cable operator may not discriminate between subscribers to the basic
service tier and other subscribers with regard to the rates charged for video
programming offered on a per-channel or per-program charge basis.
(c) Prior to October 5,2002, the provisions of paragraph (a) of this section
shall not apply to any cable system that lacks the capacity lO offer basic
service and aU programming distributed on a per channel or per program basis
without also providing other intermediate tiers of seIVice:
(1) By controlling subscriber access to nonbasic channels of seIVice
through addressable equipment electronically controlled from a central
control point or
(2) Through the installation. noninstallation. or removal of frequcncy
filters (traps) at the premises of subscribers without other alteration in
system configuration or design and without causing degradation in the
technical quality of service provided.
(d) Any retiering of channels or services that is not undertaken in order to
accomplish legitimate regulatOIY, technical, or cuslOmer seIVice objectives and
that is intended to frustrate or has the effect of frustrating compliance with
paragraphs (a) through (c) of this section is prohibited.
~76.922 Rates for the basic service tier and cable programming services tiers.
(a) Basic and cable programming service tier rates. Basic sexvice tier and
cable programming seIVice rates shall be subject to regulation by the
Commission and by state and local authorities, as is appropriate, in order to
assure that they are in compliance with the requirements of 47 V.S.C. 543.
Rates that are demonstrated, in accordance with these rules, not to exceed the
"Initial Permitted Per Channel Charge" or the "Subsequent Pcrmitted Per
Channel Charge" as described below, or the equipment charges as specified in
~ 76.923, will be acceptcd as in compliancc. The maximum monthly charge per
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subscriber for a tier of regulated programming services offered by a cable
system shall consist of a permitted per channel charge multiplied by tbe
number of channels on the tier, plus a charge for franchise fees. The maximum
monthly charges for regulated programming services shall not include any
charges for equipment or installations. Charges for equipment and installations
are to be calculated separately pursuant to ~ 76.923 of these rules.
(b) Initial permitted per channel charge.
(I) The permitted per channel charge on the initial date of regulation
shall be, at the election of the cable operator, either: (1) a charge
determined pursuant to a cost-of-seIVice proceeding; or (2) the charge
specified in subsection (i), (ii), or (ill) below, as applicable;
(i) If the operator's per channel charge for regulated programminAt
seIVices and equipment in effect on the date of initial regulation is
equal to or below the benchmark per channel charge, as adjusted
forward for inflation from September 30, 1992 to the date of initial
regulation, then the permitted per channel charge shall be the per
cbannel charge in effect on the date of initial regulation adjusted for
equipment.
(ii) If (1) the operator's per channel charge for regulated
programming seIVices and equipment in effect on the date of initial
regulation is above the benchmark per channel charge, as adjusted
forward for inflation from September 30, 1992 to the date of initial
regulation. and (2) the operator's per channel charge for regulated
programming services and equipment in effect on September 3D,
1992 was above the benchmark per channel charge, then the
permitted per channel charge is nine-tenths of the per channel
charge in effect on September 30, 1992. but no lower than the
benchmark per channel charge, additionally adjusted for inflatioA
from September 30, 1992 to the initial date of regulation. f~
equipment, and for any changes in the number of channels offered
on all regulated tiers.
(ill) If (1) the operator's per channel charge for regulated
programming services and equipment in effect on the date of initial
regulation is above the benchmark per channel charge, as adjusted
forward for inflation from September 30, 1992 until the initial date
of regulation. and (2) the operator's per chawlel charge for
regulated programming seIVices and equipment in effect on
September 3D, 1992 was below the benchmark per channel charge,
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FCC Cable Television Regulations Pursuant to 1992 Act
then the permitted per channel charge is the benchmark rate per
channel adjusted for inflation from September30. 1992 to the initial
date of regulation. for equipment, and for any changes in the
number of channels offered on all regulated tiers.
(2) For purposes of this section. the initial date of regulation for the basic
service tier shall be the date on which local notice is given pursuant to ~
76.910 of our rules that the provision of the basic service tier is subject
to regulation. For a cable programming services tier. the initial date of
regulation shall be the first date on which a complaint on the appropriate
form is filed with the Commission concerning rates charged for the cable
programming services tier.
(3) For purposes of this section, rates in effect on the initial date of
regulation or on September 30. 1992 shall be the rates charged to
subscribers for service received on that date.
(c) Subsequent pernlitted per channel cbarge. After the initial date of
regulation, the permitted per channel charge for regulated programming
services shall be. at the election of the cable operator, either. (1) a per
channel rate determined pursuant to a cost-of service showing, or (2) the prior
permitted per channel charge previously approved by a regulatory authority.
adjusted for inflation and external costs in accordance with the price cap
requirements set forth in subsection (d) below.
(d) Price cap requirements.
(1) InDation adjustments. Permitted per channel charges for regulated
programming services may be adjusted periodically on account of
inflation. Adjustments to permitted per channel charges on account of
inflation shall be based on changes in the Gross National Product Price
Index published by the Bureau of Economic Analysis of the United States
Department of Commerce.
(2) External costs. Permitted per channel charges for regulated
programming services may also be adjusted for changes in external costs
measured on a per channel per subscriber basis. To the extent external
cost increases are greater or less than the GNPPI for the relevant period
the per-channel charge will be adjusted accordingly. Per channel charges
may not be increased if external costs increase at a rate less than
inflation. Permitted per channel charges also shall be decreased on
account of external costs to the extent such costs decrease from previous
levels.
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(I) Categories. External Costs shall consist of costs in the following
categories: (1) state and local taxes applicable to provision of cable
television service; (2) franchise fees; (3) costs of complying with
franchise requirements, including costs of providing public,
educational. and governmental access channels as required by the
franchising authority; (4) retransmission consent fees; and (5)
programming costs.
(ii) The permitted per channel charge for a tier of regulated
programming seIVices shall be adjusted on account of programming
costs and retransmission consent fees only for programming or
broadcast signals offered on that tier.
(ill) The permitted per channel charge shall not be adjusted for cosfj
of retransmission consent fees or changes in those fees incurred
prior to October 6. 1994.
(iv) The starting date for adjustments on account of external costs
for a tier of regulated programming service shall be the initial date
of regulation of the tier or 180 days from the effective date of these
rules, if the initial date of regulation occurs on or after 180 days
from the effective date of these rules.
(v) Changes in franchise fees shall not result in an adjustment to
permitted per channel charges. but rather shall be calculated
separately as part of the maximum monthly charge per subscriber for
a tier of regulated programming service.
(vi) Adjustments to permitted per channel charges on account of
increases in costs of programming obtained from affilia.
programmers, as defined in ~ 76.901 of the rules shall be the les
of actual increases or the previous permitted rate level increased by
the amount of inflation.
(vii) Adjustments to permitted per channel charges on account of
increases in costs of programming shall be further adjusted to reflect
any revenues received by the operator from the programmer.
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~76.923 Rates for equipment and installation used to receive the basic service
tier.
(a) Scope. Thc equipment regulated under this section consists of all
equipment in a subscriber's home that is used to receive the basic setvice tier,
regardless of whether such equipment is additionally used to receive othertiers
of regulated programming setvice and/or unregulated setvice. Such equipment
shall include, but is not limited to:
(1) converter boxes:
(2) remote control units:
(3) connections for additional television receivers; and
(4) other cable home wiring.
Subscriber charges for such equipment shall not exceed charges based on
actual costs in accordance with the requirements set forth below.
~ (b) Unbundling. A cable operator shall establish rates for remote control units,
converter boxes, other customer equipment, installation, and additional
connections separate from rates for basic tier setvice. In addition, the rates for
such equipment and installations shall be unbundled one from the other.
(c) Equipment basket. A cable operator shall establish an Equipment Basket,
which will include all costs associated with providing customer equipment and
installation under this section.
(1) Equipment Basket costs shall be limited to the direct and indirect
material and labor costs of providing, leasing, installing, repairing, and
seIVicing customer equipment, as determined, in accordance with the cost
accounting and cost allocation requirements of ~ 76.924. The Equipment
Basket shall not include general administrative overhead including general
marketing expenses. Tbe Equipment Basket shall include a reasonable
profit.
(d) Hourly service charge. A cable operator shall establish charges for
equipment and installation using the Hourly Setvice Charge (HSC)
methodology. The HSC shall equal the operator's annual Equipment Basket
costs, excluding the purchase cost of customer equipment, divided by the total
person hours involved in installing, repairing, and servicing customer
equipment during the same period. The HSC is calculated according to the
following formula:
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EB - CE
HSC=
H
Where, EB = annual Equipment Basket Costs: CE = annual purchase cost of
all customer equipment; and H = person hours involved in installing and
repairing equipment per year. The purchase cost of customer equipment shall
include the cable operator's invoice price plus all other costs incuITed with
respect to the equipment until the time it is provided to the customer.
(e) Installation charges. Installation charges shall be either:
(i) The HSC multiplied by the actual time spent on each individual
installation: or
e
(ii) TIle HSC multiplied by the average time spent on a specific type of
installation.
(0 Remote charges. Monthly charges for rental of a remote control unit shall
consist of the average annual unit purchase cost of the type of remote leased,
including acquisition price and incidental costs such as sales tax, financing and
storage up to the time it is provided to the customer, added to the product of
the HSC times the average number of hours annually repairing or setvicing a
remote, divided by 12 to determine the monthly lease rate for a remote
according to the following formula:
UCE + (HSC X HR)
Monthly Charge = -----------
12
Where, HR = average hours repair per year; and UCE = average'3nnual unit
cost of remote. Separate charges shall be established for each significantly
different type of remote control unit.
e
(g) Other equipment charges. The monthly charges for rental of converter
boxes and other-customer equipment shall be calculated in the same manner
as for remote control units. Sepaqtte charges shall be established for each
significantly different type of converter box and each significantly different
type of other customer equipment.
(h) Additlonal connection charges. The costs of installation and monthly use
of additional connections shall be recovered as charges associated with the
installation and equipment cost categories, and at rate levels determined by
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the actual cost methodology presented in the foregoing subsections (e), (f),
and (g) . An operator may recover additional programming costs and the costs
of signal boosters on the customers premises, if any, associated with the
additional connection as a separate monthly unbundled charge for additional
connections.
(i) Charges for equipment sold. A cable operator may sell customer premises
equipment to a subscriber. The equipment price shall recover the operator's
cost of the equipment, including costs associated with storing and preparing
the equipment for sale up to the time it is sold to the customer plus a
reasonable profit. An operator may sell service contracts for the maintenance
and repair of equipment sold to subscribers. The charge for a setvice contract
shall be the HSC times the estimated average number of hours for
maintenance and repair over the life of the equipment.
(j) Promotions. A cable operator may offer equipment or installation at
charges below those determined under subsections (e) - (g), above, as long as
-those offerings are reasonable in scope in relation to the operator's overall
offerings in the Equipment Basket and not unreasonably discriminatory.
Operators may not recover the cost of a promotional offering by increasing
charges for other Equipment Basket elements, or by increasing programming
seIVice rates above the maximum monthly charge per subscriber prescribed by
these rules, As part of a general cost-of-setvice showing, an operator may
include the cost of promotions in its general system overhead costs.
(k) Franchise fees. Equipment charges may include a properly allocated
portion of franchise fees.
~76.924 Cost accounting and cost allocation requirements.
(a) Applicability. The requirements of this section are applicable to c,a~le
operators for which the basic service tier is regulated by local franchis~g
authorities or the Commission, or, with respect to a cable programIIllIlg
services tier, for which a complaint has been filed with the Commis~ion. The
requirements of this section are applicable for purposes of rate adjustments
on account of external costs and for cost-of-service showings,
(b) Generally accepted accounting principles. Cable operators ~hall ~ai~tain
their accounts in accordance with generaUy accepted accountmg pnnclples,
except as otherwise directed by the Commission.
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FCC Cable Television Regulations Pursuant to 1992 Act
(c) Accounts required. Cable operators shall maintain accounts in a manner
that will enable identification of appropriate costs and application of the
Commission's cost assignment and allocation procedures, to cost categories
necessary for rate adjustments due to changes in external costs and for cost-of-
service showings. Such categories shall be sufficiently detaUed and supported
to permit verification and audit against the company's accounting records.
(d) Accounting level. Except to the extent indicated below, cable operators
shall aggregate expenses and revenues at, either the franchise, system, regional,
or company level in a manner consistent with practices of the .oper~tor as of
April 31'1992. However, in aU events cable operators shaUldentify at the
franchise level their costs of franchise requirements, franchise fees, local taxes,
and local programming,
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(e) Cost allocation requirements.
(1) For purposes of establishing expenses at the franchise level, cable
operators shall allocate expenses and revenues aggregated at higher levels
to the franchise level based on the ratio of the total number of
subscribers served at the franchise level to the total number of subscribers
served at the higher level.
(2) Except to the extent indicated below, aU categories of costs allocate,d
to, or identified at, the franchise level shall be allocated to the baSIC
setvice tier based on the ratio of channels in the basic tier to the total
number of channels offered in the franchise area, including nonregulated
and leased commercial access channels. These costs shall be aUocated to
each tier of cable programming services based on the ratio of channels
in that tier to the total number of channels offered in the franchise area.
(3) Costs of programming and retransmission consent fees, however, shall
be allocated only to the tier on which the programming or broadcast
signal at issue is offered.
(4) Costs of franchise fees shall be allocated among equipment an,d
installations, program service tiers and subscribers in a ma~er that 18
most consistent with the methodology of assessment of franchise fees by
local authorities.
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(5) Costs of public, educational, and go~ernmental acc,:ss .channels
carried on the basic tier shaU be directly aSSigned to the baSIC her where
possible.
As of August. 1993
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FCC Cable Television Regulations Pursuant to 1992 Act
(f) Common costs. Expenses which cannot be assigned to any single expense
or setvice category shall be described as common costs. Common costs shall
be allocated to expense categories as follows:
(I) Wherever possible, common costs are to be allocated to service cost
categories based on direct analysis of the origin of the costs themselves.
(2) When direct analysis is not possible, common costs shall, if possible,
be allocated to setvice cost categories based on an indirect. cost-causative
linkage to other costs directly assigned or allocated to the setvice cost
category.
(3) When neither direct nor indirect measures of cost allocation can be
found, common costs shall be allocated to each setvice cost categoJ)'
based on the ratio of aU costs directly assigned and anributed to a service
cost category over total costs directly assignable and attributable.
(g) Unrelated expenses and revenues. Cable operators shall exclude from cost
categories used to, develop rates for the provision of regulated cable service,
equipment, and leased commercial access, any direct or indirect expenses and
revenues not related to the provision of such services. Common costs of
providing regulated cable service, equipment. and leased commercial access
and unrelated activities shall be allocated between them in accordance with
subsection (t).
(h) Part-time channels. In situations where a single channel is divided on a
part-time basis and is used to deliver service associated with different tiers or
with pay per channel or pay per view service, a reasonable and documented
allocation of that channel between services shall be required along with the
associated revenues and costs.
fi76.925 Costs of francWse requirements.
(a) The costs of satisfying franchise requirements to support public,
educational, and governmental channels shall consist of the sum of: (1) all per
channel costs for the number of channels used to meet franchise requirements
for public, educational, and governmental channels; (2) any direct costs of
meeting such franchise requirements; and (3) a reasonable allocation of
general and administrative overhead.
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(b) The costs of satisfying any other requirement under the franchise shall
consist of the direct and indirect costs including a reasonable allocation of
general and administrative overhead.
~76.930 Initiation or review of basic cable service and equipment rates.
(a) A cable operator shall file its schedule of rates for the basic service tier
and associated equipment with a franchising authority within 30 days of
receiving written notification from the franchising authority that the
franchising authority has been certified by the Commission to regulate rates
for the basic setvice tier.
~76.931 Notification of basic tier availability.
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A cable operator shall provide written notification to subscribers of the
availability of basic tier service by September 19, 1993, or three billing cycles
from June 21, 1993, and to new subscribers at the time of installation. This
notification shall include the following infonnation:
(1) That basic tier service is available;
(2) The cost per month for basic tier service;
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(3) A list of all seIVices included in the basic setvice tier.
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fi76.932 NotLfication of proposed rate Increase.
A cable operator shall provide written notice to a subscriber of any increase
in the price to be charged for the basic seIVice tier or associated equipment
at least 30 days before any proposed increase is effective. The notice should
include the name and address of the local franchising authority.
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~76.933 Franchising authority review of basic cable rates and equipment costs.
(a) After a cable operator has submitted for review its existing rates for the
basic service tier and associated equipment costs or a proposed increase in
these rates (including increases in the baseline channel change that results
from reductions in the number of channels in a tier), the existing rates will
remain in effect or the proposed rates will become effective after 30 days from
As of Augusl,1993
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FCC Cable Television Regulations Pursuant to U92 Ad
the date of submission; provided, however, that the franchising authority may
toU this 30-day deadline for an additional time by issuing a brief written order
as described in paragraph (b) within 30 days of the rate submission explaining
that it needs additional time to review the rates.
(b) If the franchising authority is unable to determine, based upon the material
submitted by the cable operator, that the existing or proposed rates are within
the Commission's permitted basic service tier charge or actual cost of
equipment as defined in U 76.922 and 76.923, or if a cable operator has
submitted a cost-of-service showing pursuant to ~~ 76.937(c) and 76.924,
seeking to justify a rate above the Commission's basic selVice tier charge as
defined in ~~ 76.922 and 76.923, the franchising authority may toll the 30-day
deadline in paragraph (a) of this section to request and/or consider additional
information or to consider the comments from interested parties as foUows:
(1) For an additional 90 days in cases not involving cost-of service
showings; or
(2) For an additional 150 days in cases involving cost-()f-service showings.
(c) If a franchising authority has availed itself of the additiona190 or 150 days
permitted in paragraph (b) of this section. and has taken no action within
these additional time periods, then the proposed rates will go into effect at the
end of the 90 or 150 day periods, or existing rates will remain in effect at such
times subject to refunds if the franchising authority subsequently issues a
written decision disapproving any portion of such rates,provided, however, that
in order to order refunds, a franchising authority must have issued a brief
written order to the cable operator by the end of the 90 or 150-day period
permitted in paragraph (b) of this section directing the operator to keep an
accurate account of aU amounts received by reason of the rate in issue and on
whose behalf such amounts were paid.
~76.934 Small systems.
A franchising authority that has been certified. pursuant to ~ 76.910 to
regulate rates for basic service and associated equipment may permit a smaU
system as derwed in section 76.901 to certify that the smaU system's rates for
basic service and associated equipment comply with ~ 76.922, the
Commission's substantive rate regulations.
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~76.935 Participation of Interested parties.
In order to regulate basic tier rates or associated equipment costs, a
franchising authority must have procedural laws or regulations applicable to
rate regulation proceedings that provide a reasonable opportunity for
consideration of the views of interested parties. Such roles must take into
account the 30. 120. or lSD-day time periods that franchising authorities have
to review rates under ~ 76.933.
~76.936 Written decision.
(a) A franchising authority must issue a written decision in a ratemaking
procceding whenever it disapproves an initial rate for the basic service tier or
associated equipment in whole or in part, disapproves a request for a rate
increase in whole or in part, or approves a request for an increase in whole or
in part over the objections of interested parties. A franchising authority is not
required to issue a written decision that approves an unopposed existing or
proposed rate for the basic service tier or associated equipment.
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(b) Public notice must be given of any written decision required in paragraph
(a). including releasing the text of any written decision to the public.
~76.937 Burden of proor.
(a) A cable operator has the burden of proving that its existing or proposed
rates for basic selVice and associated equipment comply with 47 U.S.c. ~ 543,
and U 76.922 and 76.923.
(b) For an existing or a proposed rate for basic tier service or associated
equipment that is within the permitted tier charge and actual cost of
equipment as set forth in ~~ 76.922 and 76.923, the cable operator must submit
the appropriate FCC form.
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(c) For an existing or a proposed rate for basic tier seIVice that exceeds the
permitted tier charge as set forth in U 76.922 and 76.923. the cable operator
must submit a cost-of.service showing to justify the proposed rate.
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i76.938 Proprietary information.
A franchising authority may require the production of proprietary information
to make a rate determination and in such cases must apply procedures
analogous to those set forth in ~ 0.459 regarding requests for confidentiality.
~76.940 Prospective rate reduction.
A franchising authority may order a cable operator to implement a reduction
in basic service tier or associated equipment rates where necessary to bring
rates into compliance with the standards set forth in ~~ 76.922 and 76.923.
~76.941 Rate prescription.
A franchising authority may prescribe a reasonable rate for the basic service
tier or associated equipment after it determines that a proposed rate is
unreasonable.
~76.942 Refunds.
(a) A franchising authority may order a cableoperatorto refund to subscribers
that portion of previously paid rates determined to be in excess of the
permitted tier charge or above the actual cost of equipment, unless the
operator has submitted a cost-of.service showing which justifies the rate
charged as reasonable. Before ordering a cable operator to refund previously
paid rates to subscribers, a franchising authority must give the operator notice
and opportunity to comment.
(b) An operator's liability for refunds is limited to a one-year period. except
that an operator that fails to comply with a valid rate order issued by a
franchising authority or the Commission shall be liable for refunds
commencing from the effective date of such order until such time as it
complies with such order.
(c) The refund period shall ron as follows:
(1) from the date the operator implements a prospective rate reduction
back in time to June 21, 1993, or one year, whichever is shorter.
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(2) From the date a franchising authority issues an accounting order
pursuant to ~ 76.933(c), and ending on the date the operator implements
a prospective rate reduction ordered by a franchising authority or one
year, whichever is shorter.
(d) The cable operator. in its discretion, may implement a refund in the
following wanner:
(1) By rettuning overcharges to those subscribers who actually paid the
overcharges. either through direct payment or as a specifically identified
credit to those subscribers' bills; or
(2) By means of a prospective percentage reduction in the rates for the
basic seIVice tier or associated equipment to cover the cumulative
overcharge. This shall be reflected as a specifically identified, one-time
credit on prospective bills to the class of subscribers that currently
subscribe to the cable system.
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(e) Refunds shall include interest computed at applicable rates published by
the Internal Revenue Service for tax refunds and additional tax payments.
~76.943 Fines.
(a) A franchising authority may impose fines or monetary forfeitures on a
cable operator that does not comply with a rate decision or refund order
directed specifically at the cable operator, provided the franchising authority
has such power under state or local laws.
(b) A cable operator shall not be subject to forfeiture because its rate for basic
service or equipment is determined to be unreasonable.
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~76.944 Commission review or franchising authority decisions on rates ror the
~asic service tier and associated equipment.
(a) The Commission shall be the sole forum for appeals of decisions by
franchising authorities on rates for the basic service tier or associated
equipment involving whether or not a franchising authority has acted
consistently with the Cable Act or ~~ 76.922 and 76.923. Appeals of
ratemaking decisions by franchising authorities that do not dcpend upon
determining whcther a franchising authority has acted consistently with the
Cable Act or ~~ 76.922 and 76.923, may be heard in state or local courts.
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FCC Cable Television Regulations Pursuant to 1991 Act
(b) Ally participant at the franchising authority level in a ratemaking
proceeding may file an appeal of the franchising authority's decision with the
Commission within 30 days of release of the text of the franchising authority's
decision as computed under ~ 1.4(b) of this chapter. Oppositions may be filed
within 15 days after the appeal is filed. and must be served on the party(ies)
appealing the rate decision. Replies may be filed 7 days after the last day for
oppositions and shall be served on the parties to the proceeding.
~76.94S Procedures Cor Commission on review oC basic service rate.
(a) Upon assumption of rate regulation authority, the Commission will notify
the cable operator and require the cable operator to file its basic rate schedule
with the Commission within 30 days, with a copy to the local franchising
authority.
'(b) Basic seIVice and equipment rate schedule filings for existing rates or
proposed rate increases (including increases in the baseline channel change
that results from reductions in the number of channels in a tier) must use the
appropriate FCC forms. Cable operators with existing or proposed rates above
the permitted tier rate must submit a cost-of-service showing sufficient to
support a fInding that the rates are reasonable.
(c) Filings proposing annual adjustments or rates within the rate regulation
standards in fifi 76.922 and 76.923, must be made 30 days prior to the
proposed effective date and can become effective on the proposed effective
date uuless the Commission issues an order defening the effective date or
denying the rate proposal. Petitions opposing such filings must be rued within
15 days of public notice of the filing by the cable operator and be
accompanied by a certificate that service was, made on the cable operato~ ~nd
the local franchising authority. The cable operator may flIe an opposttion
within five days of filing of the petition, certifying to service on both the
petitioner and the local franchising authority.
(d) Filings proposing a rate not within the rate regulation standards of fi~
76.922 and 76.923, must be made 90 days before the requested effective date.
Petitions opposing such filings must be filed within 30 days of public notice of
the filing, and be accompanied by a certificate that service was made on the
cable operator and the local franchising authority. The cable operator may file
an opposition within 10 days of the filing of the petition, and cert~g that
service was made on the petitioner and the local franchising authonty.
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~76.9S0 Complaints regarding cable programming service rates.
Ally subscriber, franchising authority, or other relevant state or local
government entity may ftle with the Commission a complaint challenging the
reasonableness,ofa cable operator's rate for cable programming seIVice, or the
reasonableness of a cable operator's charges for installation or rental of
equipment used for the receipt of cable programming service.
~76.9S1 Standard complaint Corm; other filing requirements.
(a) Any complaint regarding a cable operator's rate for cable programming
service or associated equipment must be filed using standard complaint form,
FCC 329. The cable operator must provide a copy of the standard complaint
form to any subscriber upon request.
(b) The following information must be provided ou the standard complaint
form:
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(1) The complainant's name, mailing address, and daytime telephone
number;
(2) The name, mailing address, and FCC community unit identifier of the
relevant cable operator (Note: Pursuant to ~ 76.952, the cable operator
must provide its FCC community unit identifier on monthly bills to
subscribers);
(3) The name and address of the relevant franchising authority (Note:
pursuant to ~ 76.952, the cable operator must provide this information on
monthly bills to subscribers);
(4) An indication whether the complainaut is challenging the
reasonableness of:
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(i) A rate concerning cable programming service or associated
equipment in effect on June 21, 1993; or
(il) A rate increase for cable programming service or associated
equipment;
(5) For subscriber complaints regarding a rate increase, the date the
complainant first received a bill from the cable operator reflecting the
increased rate;
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FCC Cable Television Regulations Pursuant to 1992 Ad
(6) A description of the cable programming service or associated
equipment involved and, if applicable, how the service or associated
equipment has changed;
(7) The current rate for the cable programming service or associated
equipment at issue and, if the complainant is challenging the
reasonableness of a rate increase, the most recent rate for the service or
associated equipment immediately prior to the rate increase;
(8) An indication whether the complainant is filing:
(i) a complaint regarding this specific rate for the first time: or
(il) a corrected complaint regarding this specifie rate to cure a defect
in a prior complaint that was dismissed without prejudice:
(9) If the complainant is filing a corrected complaint, an indication of the
date the complainant flled the' prior complaint and the date the
complainant received notification from the Commission tbat tbe prior
complaint was defective;
(10) A certification that a copy of the complaint, including all
attachments, is being served contemporaneously via first class mail on the
cable operator and, if the complainant is a subscriber, on the relevant
franchising authority;
(11) An allegation that the rate in question is unreasonable because it
violates the Commission's rate regulations; and
(12) A certification that, to the best of the complainant's knowledge, the
information provided on the form is true and correct.
(c) The complainant must attach to the standard complaint form a copy of the
most recent bill reflecting the disputed rate or rate increase.
(d) A complaining subscriber may, but is not required to, attach to the
standard complaint form a statement front the relevant franchising authority
presenting its views on the reasonableness of the rate in question.
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FCC Cable Television Regulations Pursuant to 1992 Act
fi76.952 Information to be provided by cable operator on monthly subscriber
bills.
All cable operators must provide the following information to subscribers on
monthly bills:
(a) The name and mailing address of the relevant franchising authority: and
(b) The FCC community unit identifier for the cable system.
fi76.953 Limitation on filing a complaint.
(a) Complaint regarding a rate in effed on June 21, 1993. Notwithstanding
paragraph (b) of this section. a complaint regarding a rate for cable
programming service or associated equipment in effect on June 21, 1993 must
be filed by December20, 1993.
(b) Complaint recording a rate increase. Except as provided in paragraph (a)
of this section, a complaint alleging an unreasonable rate for cable
programming seIVice or associated equipment may be filed against a cable
operator only in the event of a rate increase. A complaint regarding a rate
increase for cable programming seIVice or associated equipment must be filed
with the Commission within 45 days from the date the complainant receives
a bill from the cable operator that reflects the increased rate.
(c) Late-rued complaints will be dismissed with prejudice.
fi76.954 Initial review of complaint; minimum showing requirement; dismissal
of defective complaints.
( a) The Commission will conduct an initial review of a complaint to determine
if it meets the minimum showing required to allow the complaint to go
fOlWard. The minimum showing shall be satisfied if the complaint is flled using
the standard complaint form described in f 76.951 and includes all information
and attachments required by tbat form. A complainant will not be required,
as part of tbe minimum Showing. to provide tbe underlying infonnation and
calculations necessary to judge the cable programming service rate in question
against the Commission's rate standards.
(b) A complaint that does not meet tbe minimum showing requirement
described in paragrapb (a) of this section will be considered defective. A
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FCC Cable Television Regulations Pursuant to 1992 Act
defective complaint will be dismissed without prejudice to filing a corrected .
complaint as provided by A 76.955. The Commission will notify the
complainant by mail of the dismissal. The filing of a complaint on the
applicable fonn, but which is otheIWise defective, will toll the limitation period
established by ~ 76.953.
A76.955 Additional opportunity to me corrected complaint.
(a) If the Commission dismisses an initial complaint without prejudice
pursuant to ~ 76.954, the complainant shall have one additional opportunity
to cure the defect and me a corrected complaint.
(b) For a complaint filed on the applicable form but is otheIWise defective, the
complainant must cure the defect and file a corrected complaint with the
Commission within 30 days from the date of the Commission's dismissal
notice. Failure to cure the defect and file a corrected complaint within this
time period will result in dismissal of the complaint with prejudice.
i76.956 Cable operator response.
(a) Unless the Commission notifies a cable operator to the contrary, the cable
operator must file with the Commission a response to a complaint filed on the
applicable fonn within 30 days of the date of seIVice of the complaint. The
response shall indicate when service occurred. Service by mail is complete
upon mailing. See ~ 1.47 (t). The response shall include the information
required by the appropriate FCC form. The cable operator must serve its
response on the complainant (and, if the complainant is a subscriber, the
relevant franchising authority) via first class mail.
(b) The burden shall be on the cable operator to prove that the service rate
or equipment charge in question is not unreasonable. The cable operator may
carry its burden in the following manner:
(1) For a service rate at or below the permitted level, by providing
information and calculations that demonstrate that the rate in question
falls at or below the permitted level;
(2) For a service rate that exceeds the permitted level;
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FCC Cable Television Regulations Pursuant to 1992 Act
(i) By providing proof that the cable system has reduced the rate for
the cable programming service at issue to a level at or below the
permitted level; or
(ii) By providing detailed cost.based information that demonstrates
that the rate in question is reasonable despite the fact that it
exceeds the permitted level.
(3) For a charge for equipment installation or rental. by providing
information that demonstrates that the charge is bascd on the cable
operator's actual cost.
(c) In addition to responding to the merits of a complaint, the cable operator
may also move for dismissal of the complaint for failure to meet the minimum
showing requirement. AJ1y such motion for dismissal must state with
particularity the reasons the cable operator believes the complaint is defective
and shall not relieve the cable operator of its obligation to respond to the
merits of the complaint.
(d) A cable operator may file a consolidated response to multiple complaints
regarding the identical rate or rate increase. A consolidated response must be
med within 30 days from the date of service of the first complaint received,
unless the Commission notifies the cable operator to the contrary. A cable
operator may amend a consolidated response to address new issues raised by
complaints received after the cable operator's initial response.
(e) A cable operator that fails to me and selVe a response to a valid complaint
may be deemed in default. If the Commission deems a cable operator in
default, the Commission may enter an order against the cable operator finding
the rate to be umeasonable and mandating appropriate relief.
(f) A cable operator need not respond to any complaint that is:
(I) Not f1!ed on the applicable form; or
(2) That the Commission has determined is defective and has so notified
the cable operator.
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~76.9S7 Commission adjudication or the complaint.
The Commission will consider the complaint and the cable operator's response
and then determine by written decision whether the rate for the cable
programming setvice or associated equipment is unreasonable or not. If it
determines that the rate in question is unreasonable, the Commission will
grant the complaint and may order appropriate relief, including, but not
limited to, prospective rate reductions and refunds. If it determines that the
rate in question is reasonable, the Commission will deny the complaint.
~76.960 Prospective rate reductions.
Upon a rmding that a rate for cable programming seIVice or associated
equipment is unreasonable, the Commission may order the cable operator to
implement a prospective rate reduction to the class of customers subscribing
, to the cable programming seIVice at issue. The Commission's decision
regarding a prospective rate reduction shall remain binding on the cable
operator for one year unless the Commission specifies otherwise.
~76.961 Refunds.
(a) Upon a finding that a rate for cable programming setvice or associated
equipment is unreasonable, the Commission may order the cable operator to
refund to subscribers that portion of previously paid rates which is deemed
unreasonable.
(b) The cumulative refund due subscribers shall be calculated from the date
a valid complaint is filed until the date a cable operator implements a
prospective rate reduction as ordered by the Commission pursuant to A 76.960.
(c) The cable operator, in its discretion, may implement a refund in the
following manner:
(i) By returning overcharges to those subscribers who ~ctuallf pai~ the
overcharges, either through direct payment or as a specifically ldentified,
one-time credit to those subscribers' bills; or
(ii) By means of a prospective percentage reduction in the unreasonable
cable programming service rate or equipment charge to cover the
cumulative overcharge. This shall be reflected as a specifically identified, .
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FCC Cable Television Regulations Pursuant to 1992 Act
one-time credit on prospective bills to the class of subscribers that
currently subscnbe to the cable programming seIVice or associated
equipment at issue.
(d) Refunds shall include interest computed at applicable rates published by
the Internal Revenue SeIVice for tax refunds and additional tax payments.
Interest shall accrue from the date a valid complaint is filed until the refund
issues.
~76.962 Implementation and certification of compliance.
(a) Implementation. A cable operator must implement remedial requirements,
including prospective rate reductions and refunds, within 60 days from the date
the Commission releases an order mandating a remedy.
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(b) Certification of compliance. A cable operator must certify to the
Commission its compliance with any Commission order mandating remedial
requirements. Such certification shall:
(1) Be filed with the Commission within 90 days from the date the
Commission releases an order mandating a remedy:
(2) Reference the applicable Commission order;
(3) State that the cable operator has complied fully with all provisions of
the Commission's order,
(4) Include a description of the precise measures the cable operator has
taken to implement the remedies ordered by the Commission; and
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(5) Be signed by an authorized representative of the cable operator.
~76.963 Forfeiture.
(a) If any cable operator willfully fails to comply with the terms of any
Commission order, including an order mandating remedial requirements after
a rmding of unreasonable cable programming service or equipment rates, or
any Commission rule, the Commission may, in addition to other remedies,
impose a forfeiture pursuant to Section 503(b) of the Communications Act of
1934, as amended, 47 U.S.C. ~ 503(b).
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FCC Cable Television Regulations Pursuant to 1992 Act
(b) A cable operator shall not be subject to forfeiture because its rate for
cable programming service or equipment is determined to be unreasonable.
~76.964 Advance written notification of rate Increases.
In addition to the requirementof Section 76.309(c)(3)(i)(B) regarding advance
notification to customers of any changes in rates, programming services or
channel positions, a cable operator shall give the relevant franchising authority
a minimum of 30 days advance written notification of any changes in rates for
cable programming selVice or associated equipment.
~76.970 Commercial leased access rates.
(a) Cable operators shaU designate ch.annel capacity ~or commer~ial use by
.. persons unaffiliated with the operator m accordance Wlth the requtrement of
47 U.S.C. ~ 532.
(b) The maximum cODlIDercialleased access rates that a c~ble operator may
charge is the highest implicit net fee charged any nonaffiliated programmer
(excluding leased access programmers) within the same program category.
(c) The implicit fee charged an unaffiliated programmer shaU be calculated by
determining the monthly price per subscriber that the ~perator pays to ca?y
the programming of nonaffiliated providers and deductm~ the mon.thlY pn~
subscribers pay to view tbe programming of tbe nonaffiliated provtder. This
difference is multiplied by the percentage of subscribers able to receive t~e
nonaffiliated provider's programming. The implicit fee for a contracted se~ce
may not include fees, stated or implied, for seIVices other than t~e pro~lon
of channel capacity (e.g., billing and collection, marketing, or studio semces).
(d) For each of the three program categories as defmed in ?aragrap~ (f) ~f
this section, the highest implicit net fee charged any nonaffiliated proVlde.r III
each category shall be the maximum monthly leased access rate per sub~nber
tbat tbe operator could cbarge a commercial leased access program~er ID th?t
category. The highest implicit net fee shall be based on contract~ ID effect ID
the previous calendar year. Maximum rates for shorter penods can be
calculated by prorating the monthly maximum rate.
(e) Upon request, a schedule of commerciallcased access rates sh~" ~
provided to prospective leased access programmers. Operato~ shall.ma~tam,
for Commission inspection, sufficient supporting documentatIOn to Justify the
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FCC Cable Television Regulations Pursuant to 1992 Act
scheduled rates, including supporting contracts, calculations of the net implicit
fees, and justifications for all adjustments.
(f) For purposes of paragraph (b) of this section there are three program
categories:
(1) Programming for which a per-event or per channel charge is made;
(2) Programming more than fifty percent of the capacity of which is used
to sell products directly to customers; and
(3) All other programming.
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~76.971 Commercial leased access terms and conditions.
(a) (1) The cable operator and unaffiliated commercial leased access user
may negotiate channel placement and tier access for Jeased programming,
taking into account:
(i) The nature of the service (payor general distribution channel,
complete channel or individual program);
(ii) The relationship between the charge imposed and the desirability
of the channel; and
(ill) The need to provide competition in program delivery and to
afford users a genuine outlet for their programming.
(2) Where demand for commercial leased access capacity exceeds
available supply, each lessee will be allowed to lease up to one channel's
capacity.
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(b) Cable operators may not apply programming production standards to
leased access that are any higher than those applied to public, educational and
governmental access channels.
(c) Cable operators are required to provide unafftliated leased access users the
minimal level of technical support necessary for users to present their material
on the air, and may not umeasonably refuse to cooperate with a leased access
user in order to prevent that provider from obtaining channel capacity,
provided however, that leased access providers must reimburse operators for
the reasonable cost of any technical support that operators actually provide.
As of August, 1993
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FCC Cable Television Regulations Pursuant to 1992 Act
(d) Cable operators may require reasonable security deposits or other
assurances from users who are unable to prepay in full for access to leased
commercial channels.
(e) Cable operators may not set terms and conditions for commercialleascd
access use based on content, except:
(1) To the limited extent necessary to establish a reasonable price for the
commercial use of designated channel capacity by an unaffiliated person;
or
(2) To comply with 47 U.S.C. fi 532(h), (i) and fi 76.701.
(f) (1) A cable operator shall provide billing and collection seIVices for
commercial leased access cable users, unless the operator demonstrates
the existence of third party billing and collection services which in terms
of cost and accessibility, offer leased access users an alternative
substantially equivalent to that offered comparable non-leased
programmers.
(2) If an operator can make the showing required in paragraph (1)(1) of
this section, it must, to the extent technically feasible, make available data
necessary to enable a third party to bill and collect for the leased access
user.
fi76.975 Commercial leased access dispute resolution.
(a) Any person aggrieved by the failure or refusal of a cable operator to make
commercial channel capacity available in accordance with the provisions of
Title VI of the Communications Act may bring an action in the district court
of the United States for the judicial district in which the cable system is
located to compel that such capacity be made available.
(b) Any person aggrieved by the failure or refusal of a cable operator to make
commercial channel capacity available or to charge rates for such capacity in
accordance with the provisions of Title VI of the Communications Act, or our
implementing regulations, ~~ 76.970 and 76.971, may file a petition for relief
with the Commission.
(c) A petition must contain a concise statement of the facts constituting a
violation of the statute or the Commission's Rules, the specific statute(s) or
rule(s) violated, and certify that the petition was served on the cable operator.
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FCC Cable Television Regulations Pursuant to 1992 Act
(d) A petition must be filed within 60 days of the alleged violation.
(e) The cable operator or other respondent will have 30 days from the filing
of the petition in which to file a response. If a leased access rate is disputed,
the response must show that the rate charged is not higher than the highest
implicit fee the operator charges for a comparable category of service, and
submit the affidavit of a responsible company official in support. If, after a
response is submitted, the staff finds a prima facie violation of our rules, the
staff may require a respondent to produce additional information, or specify
other procedures necessary for resolution of the proceeding.
(f) The Commission, after consideration of the pleadings, may grant the relief
requested, in whole or in part, including, but not limited to ordering refunds,
injunctive measures, or fodeitures pursuant 47 V.S.C. ~ 503, denying the
petition, or issuing a ruling on the petition or dispute.
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(g) To be afforded relief, the petitioner must show by clear and convincing
evidence that the cable operator has violated the Commission's leased access
provisions in 47 U.S.C. ~ 532 or fi~ 76.970 and 76.971, or otherwise acted
unreasonably or in bad faith in failing or refusing to make capacity available
or to charge lawful rates for such capacity to an unaffiliated leased access
programmer.
(h) During the pendency of a dispute, a party seeking to lease channel capacity
for commercial purposes, shall comply with the rates, tenns and conditions
prescribed by the cable operator, subject to refund or other appropriate
remedy.
676.977 Minority and educational programming used in lieu or deregulated
commercial leased access capacity.
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(a) A cable operator required by this section to designate channel capacity for
commercial use pursuant to 47 D.S.C. 6 532, may use any such channel
capacity for the provision of programming from a qualified minority
programming source or from any qualified educational programming source,
whether or not such source is affiliated with cable operator. The channel
capacity used to provide programming from a qualified minority programming
source or from any qualified educational programming source pursuant to this
Section may not exceed 33 percent of the channel capacity designated
pursuant to 47 D.S.C. ~ 532.
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(b) For purposes of this section, a qualified minority programming source is
a programming source that devotes substantially all of its programming to
coverage of minority viewpoints, or to programming directed at members of
minority groups, and which is over 50 percent minority..owned.
(c) For purposes of this section, a qualified educational programming source
is a programming source that devotes substantially all of its programming to
educational or instructional programming that promotes public understanding
of mathematics, the sciences, the humanities, or the arts and has a
documented annual expenditure on programming exceeding $15 million. The
annual expenditure on programming means all annual costs incurred by the
programming source to produce or acquire programs which are scheduled to
be televised, and specifically excludes marketing, promotion, satellite
transmission and operational costs, and general administrative costs.
(d) For purposes of paragraphs (b) and (c) of this section, "substantially all"
means that 90% or more of the programming offered, must be devoted to
- minority or educational purposes, as defined in paragraphs (b) and (c) of this
section respectively.
(e) For purposes of subsection (b), "minority" is defined as in 47 D.S.C. 309(i)
(3) (c) (ll) to include Blacks, Hispanics, American Indians, Alaska Natives,
Asians and Pacific Islanders.
~76.980 Charges ror customer changes.
(a) This Section shall govern charges for any changes in service tiers or
equipment provided to the subscriber that are initiated at the request of a
subscriber after initial service installation.
(b) The charge for customefchanges in seIVice tiers effected solely by coded
entry on a computer terminal or by other similarly simple methods shall be a
nominal anlOunt, not exceeding actual costs, as defined in subsection (c)
below.
(c) The charge for customer changes in service tiers or equipment that involve
more than coded entry on a computer or other similarly simple method shall
be based on actual cost. The actual cost charge shall be either the HSC, as
defined in Section 76.923 of the rules multiplied by the number of person
hours needed to implement the change, or the HSC multiplied by the average
number of person hours involved in implementing customer changes.
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FCC Cable Television Regulations Pursuant to 1992 Act
(d) A cable operator may establish a higher charge for changes effected solely
by coded entry on a computer terminal or by other similarly simple methods,
subject to approval by the franchising authority, for a subscriber changing
service tiers more than two times in a twelve month period, except for such
changes ordered in response to a change in price or channel line-up. If a cable
system adopts such an increased charge, the cable system must notify all
subscribers in writing that they may be subject to such a charge for changing
service tiers more than the specified number of times in any twelve month
period.
(e) Downgrade charges that are the same as, or lower than, upgrade charges
are evidence of the reasonableness of such downgrade charges.
(1) For 30 days after notice of retiering or rate increases, a customer may
obtain changes in service tiers at no additional charge.
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~76.981 Negative option billing.
A cable operator shall not charge a subscriber for any seIVice or equipment
that the subscriber has not affirmatively requested by name. This provision,
however, shall not preclude the addition or deletion of a specific program
from a service offering, the addition or deletion of specific channels from an
existing tier of service, or the restructuring or division of existing tiers of
service that do not result in a fundamental change in the nature of an existing
service or tier of service provided that such change is otherwise consistent with
applicable regulations. A subscriber's failure to refuse a cable operator's
proposal to provide such service or equipment is not an affirmative request for
service or equipment. A subscriber's affirmative request for seIVice or
equipment may be made orally or in writing.
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~76.982 Continuation of rate agreements.
During the tenn of an agreement executed before July 1, 1990. by a
franchising authority and a cable operator providing for the regulation of basic
cable service rates where there was not effective competition under
Commission rules in effect on that date, the franchising authority may regulate
basic cable rates without following Section 623 of the 1992 Cable Act or ~~
76.910 through 76.942. A franchising authority regulating basic cable rates
pursuant to such a rate agreement is not required to file for certification
during the remaining term of the agreement but shall notify the Commission
of its intent to continue rcgulating basic cable rates.
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~76.983 Discrimination.
(a) No Federal agency, state, or local franchising authority may prohibit a
cable operator from offering reasonable discounts to senior citizens or to
economically disadvantaged groups.
(1) Such discounts must be offered equally to all subscribers in the
franchise area who qualify as members of these categories, or any
reasonable subcategory thereof.
(2) For purposes of this section, members of economically disadvantaged
groups are those individuals who receive federal, state or local welfare
assistance.
(b) Nothing herein shall preclude any Federal agency, state, or local
franchising authority from requiring and regulating the reception of cable
, service by hearing impaired individuals.
~76.984 Geographically uniform rate structure.
(a) The rates charged by cable operators subject to ~~ 76.922 and 76.923 shall
be provided pursuant to a rate strucrure that is uniform throughout each
franchise area in which cable service is provided.
(b) This section does not prohibit the establishment by cable operators of
reasonable categories of setvice and customers with separate rates and terms
and conditions of seIVice, within a franchise area.
fi76.985 Subscriber bill itemization.
(a) Cable operators may identify as a separate line item of each regular
subscriber bill the following:
(1) The amount of the total bill assessed as a fra~c~ fee and the
identity of the franchising authority to which the fee lS paid.
(2) The amount of the total bill assessed to satisfy any requirements
imposed on the cable operator by the franchise agreement to support
public, educational, or governmental channels or the use of such
channels.
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FCC Cable Television Regulations Pursuant to 1992 Aet
(3) The amount of any other fee, tax, assessment, or charge of any kind
imposed by any governmental authority on the transaction between the
operator and the subscriber. In order for a governmental fee or
assessment to be separately identified under this subsection, it must be
directly imposed by a governmental body on a transaction between a
subscriber and an operator.
(b) The charge identified on the subscriber b~ as. the total charge f~r
cable service should include all fees and costs ltenuzed pursuant to this
Section.
(c) Local franchising authorities may adopt regulations consistent with this
section.
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Subpart - Consumer Protection and CUstomer Service
~76.309 Customer Service Obllgations
(a) A cable franchise authority may enforce the customer service standards
set forth in section (c) of this rule against cable operators. The franchise
authority must provide affected cable operators ninety (90) days written notice
of its intent to enforce the standards.
(b) Nothing in this rule should be construed to prevent or prohibit:
(1) A franchising authority and a cable operator from agreeing to
customer service requirements that exceed the standards set forth in
section (c) of this rule;
(2) A franchising authority from enforcing, through the end of the
franchise term, pre-existing customer service requirements that exceed the
standards set forth in section (c) of this rule and are contained in current
franchise agreements;
(3) Any State or any franchising authority from enacting or enforcing any
consumer protection law, to tbe extent not specifically preempted herein;
or
(4) The establishment or enforcement of any State or municipal law or
regulation concerning customer service that imposes customer service
requirements that exceed, or address matters not addressed by, the
standards set forth in section (c) of this rule.
(c) Effective July 1, 1993, a cable operator shall be subject to the following
customer seIVice standards:
(1) Cable system office hours and telephone availability~
(A) The cable operator will maintain a local, toll-~ee or co~ect call
telephone access line which will be available to Its subscnbers 24
hours a day, seven days a week.
(i) Trained company representatives will be available to respond to
customer telephone inquiries during nonnal business hours.
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FCC Cable Television Regulations Pursuant to 1992 Act
(ii) After normal business bours, the access line may be answered by
a setvice or an automated response system, including an answering
machine. Inquiries received after normal business hours must be
responded to by a trained company representative on the next
business day.
(B) Under normal operating conditions, telephone answer time by
a customer representative, including wait time, shall not exceed
thirty (30) seconds when the connection is made. If the call needs
to be transferred, transfer time shall not exceed thirty (30) seconds.
These standards shall be met no less than ninety (90) percent of the
time under normal operating conditions, measured on a quarterly
basis.
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(C) The operator will not be required to acquire equipment or
perform sulVeys to measure compliance with the telephone
answering standards above unless an historical record of complaints
indicates a clear failure to comply.
(D) Under normal operating conditions, the customer will receive
a busy signal less than three (3) percent of the time.
(E) CUstomer service center and bill payment locations will be open
at least during normal business hours and will be conveniently
located.
(2) Installations, outages and service calls- Under normal operating
conditions, each of the following four standards will be met not less than
ninety five (95) percent of the time measured on a quarterly basis:
(A) Standard installations will be performed within seven (7) ..
business days after an order has been placed. "Standard""
installations are those that are located up to 125 feet from the
existing distribution system.
(B) Excluding conditions beyond the control of the operator, the
cable operator will begin working on "setvice interruptions" promptly
and in no event later than 24 hours after the interruption becomes
known. The cable operator must begin actions to correct other
service problems that next business day after notification of the
service problem.
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FCC Cable Television Regulations Pursuant to 1992 Act
(C) The "appointment window" alternatives for installations, setvice
calls, and other installation activities will be either a specific time or,
at maximum, a four-hour time block during normal business hours.
(The operator may schedule service calls and other installation
activities outside of normal business hours for the express
convenience of the customer.)
(D) An operator may not cancel an appointment with a customer
after the close of business on the business day prior to the scheduled
appointment.
(E) If a cable operator representative is running late for an
appointment with a customer and will be able to keep the
appointment as scheduled. the customer will be contacted. The
appointment will be rescheduled. as necessary, at a time which is
convenient for the customer.
(3) Communications between cable operators and cable subscribers-
(A) Notifications to subscribers-
(1) The cable operator shall provide written information on
each of the following areas at the time of installation of service,
at least annually to all subscribers, and at any time upon
request:
(i) Products and service offered;
(il) Prices and options for programming services and
conditions of subscription to programming and other
services;
(ill) Installation and service maintenance policies;
(iv) Instructions on how to use the cable service;
(v) Channel positions of programming carried on the
system; and,
(vi) Billing and complaint procedures, including the
address and telephone number of the local franchise
authorities cable office.
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(2) Customers will be notified of any changes in rates, programming
services or channel positions as soon as possible through announcements
on the cable system and in writing. Notice must be given to subscribers
a minimum of thirty (30) days in advance of such changes if the change
is within the control of the cable operator. In addition, the cable
operator shall notify subscribers thirty (30) days in advance of any
significant changes in the other information required by the preceding
paragraph.
(B) Billing-
(i) Bills will be clear, concise and understandable. Bills must
be fully itemized. with itemizations including, but not limited to, ..
basic and premium service charges and equipment charges. ..,
Bills will also clearly delineate all activity during the billing
period, including optional charges, rebates and credits.
(il) In case of a billing dispute, the cable operator must respond
to a written complaint from a subscriber within thirty (30) days.
(C) Refunds. Refund checks will be issued promptly, but no later
than either.
(i) The customer's next billing cycle following resolution of the
request or thirty (30) days, whichever is earlier, or
(ii) The return of the equipment supplied by the cable operator
if service is terminated.
(D) Credits. Credits for service will be issued no later than the
customer's next billing cycle following the determination tbat a credite
is warranted.
(4) DefInitions.
(A) Normal Business Hours. Tbe term "normal business hours"
means those hours during which most similar businesses in the
community are open to serve customers. In all cases, "normal
business hours" must include some evening hours at least one night
per week and/or some weekend hours.
(D) Normal Operating Conditions. The term "normal operating
conditions" means those selVice conditions which are within the
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FCC Cable Television Regulations Pursuant to 1992 Act
control of the cable operator. Those conditions which are not within
the control of the cable operator include, but are not limited to,
natural disasters, civil disturbances, power outages, telephone
network outages, and severe or unusual weather conditions. Those
conditions which are ordinarily within the control of the cable
operatorinclude, but are not limited to, special promotions, pay-per-
view events, rate increases, regular peak or seasonal demand
periods, and maintenance or upgrade of the cable system.
(C) Setvice Interruption. The term "setvice interruption" means the
loss of picture or sound on one or more cable channels.
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FCC Cable Television Regulations pursUAnt to 1992 Act
Subpart L w_ Cable Television Access
~76.701 Leased Access Channels.
(a) Notwithstanding 47 V.S.C. i 532 (b) (2) (Communications Act of 1934, as
amended, Section 612), a cable operator, in accordance with 47 D.S.C. i 532
(h) (Cable Consumer Protection and Competition Act of 1992, il0 (a)), may
adopt and enforce prospectively a written and published policy of prohibiting
programming which, it reasonably believes, describes or depicts sexual or
excretory activities or organs in a patently offensive manner as measured by
contemporary community standards.
(b) A cable operator that does not prohibit the distribution of progra~
in accordance with paragraph ( a) shall place any leased access programming
identified by program providers as indecent on one or more channels that are
available to subscribers only with their prior written consent as provided in
paragraph (c).
(c) A cable operator shall make such programming available to a subscriber
within 30 days of receipt of a wriUen request for access to the programming
that includes a statement that the requesting subscriber is at least eighteen
years old; a cable operator shall terminate a subscriber's access to such
programming within 30 days from receipt of a subscriber's request.
(d) A program provided requesting access on a leased access channel shall
identify for a cable operator any programming that is indecent as defined in
paragraph (g). Such identification shall be in writing and include the full
name, address, and telephone number of the program provider and a
statement that the program provider is responsible for the content of the
programming. A cable operator may require that such identification ..
provided up to 30 days prior to the requested date for carriage. A prograll'
provider requesting carriage of "live programming" on a leased access channel
that is not identified as indecent must exercise reasonable efforts to insure that
indecent programming will not be presented. A cable operator will not be in
violation of paragraph (b) if it fails to block indecent programming that is not
identified by it program provide as required in paragraph (d).
(e) A cable operator shall not be required to provide leased access to a
program provided if:
(1) The program provider refuses to identify whether programming is
indecent as required under paragraph (d); or
As of August, 1993
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FCC Cable Television Regulations Pursuant to 1992 Act
(2) The program provider refuses or fails to certify, if requested by the
cable operator under paragraph (e), that the programming is not obscene
programming or indecent programming subject to the requirement of
paragraph (b); or
(3) The program provider refuses or fails to certify, if requested by the
cable operator under paragraph (e), that reasonable efforts will be made
to ensure that any "live programming" is not obscene programming or
indecent programming subject to the requirement of paragraph (b); or
(4) The program provider has failed to provide up to thirty days prior
notice, if requested by the cable operator, that the programming is
indecent.
(g) For purposes of paragraphs (b) - (f), "indecent programming" is any
programming that describes or depicts sexual or excretory activities or organs
jn a patently offensive manner as measured by contemporary community
standards for the cable medium.
(h) Cable operators shall retain records sufficient to verify their compliance
with paragraph (b) of this section and make such records available to the
public. Such records must be retained for a period sufficient to cover the
limitations period specified in 47 V.S.C. ~ 503 (b) (6) (B).
i76.702 Public, Educational and Governmental Access.
Any cable operator may prohibit the use on its system of any channel capacity
of any public, educational, or governmental access facility for any
programming which contains obscene material. indecent material as defined
in section 76.701(g}, or material soliciting or promoting unlawful conduct. For
purposes of this section. "material soliciting or promoting unlawful conduct"
shall meaD material that is otherwise prescribed by law. A cable operator may
require any access user, or access manager or administrator agreeing to
assume the responsibility of certifying, to certify that its programming does not
contain any of the materials described above and that reasonable efforts will
be used to ensure that live programming does not contain such material.
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LOCAL CABLE REGULATION INFORMATION
What is the 1992 Cable Act?
On October 5, 1992, Congress enacted the Cable Television Consumer Protection and Competition Act
of 1992, The Federal Communications Commission is responsible for establishing the rules to
implement this law,
This legislation affects local government by allowing local franchising authorities, like cities, to
regulate rates for the basic cable service tier and to regulate customer service standards, The FCC
regulates the satellite value package tier while rates for premium and pay per view channels are
unregulated,
How will the City regulate basic rates
Initially, Viacom, the city's cable operator, will submit documentation to the City demonstrating that
their rates comply with FCC regulations, In future years, Viacom must file an application with the
City for a rate adjustment. The FCC allows rate increase based on specific criteria such as number of
cable channels and satellite distributed programming, Since the cities of San Ramon, Dublin,
Pleasanton and Livermore operate under similar franchises with Viacom, they will jointly review
Viacom's rate application,
What is Basic Service Tier. Satellite Tier and Premium Service
The basic service tier(Viacom calls it Limited Service) includes public and local broadcast stations, and
public access channels, Broadcast stations for Viacom include channels 2, 4, 5,6,7,9, etc., Channel30
(CTV) is currently the only public access channel on Viacom's system,
The Satellite Tier includes all other channels not included in the basic service tier or which is not a
premium or pay per view channel. These stations include ESPN, CNN, A & E, TNT, etc,
Premium Channels include Showtime, HBO, Disney, etc, This service requires the rental of an
addressable cable box in order to receive the satellite transmission,
Why Did Viacom Change its Channel Schedule
One of the provisions of the Cable Act of 1992 requires that Viacom "Must Carry" on its cable system,
any TV station in the local market that meets the criteria outlined by the FCC, even if it means
dropping other channels from their schedule.
Who to Call for Customer Service
In general, Viacom's customer service policies exceed the minimum standards established by the FCC.
Ideally, all customer service issues should be handled by Viacom, For 24-hour general customer
service call 800-945-2288. For 24-hour Customer Service Repair call 828-2000.
If a customer perceives a possible violation of FCC regulations for Basic Service Rates or customer
service standards, they should call 833-6650.
Exhibit 3