Goto Section: 76.930 | 76.934 | Table of Contents
FCC 76.933
Revised as of October 1, 2008
Goto Year:2007 |
2009
Sec. 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) under the
quarterly rate adjustment system pursuant to Section 76.922(d), the existing
rates will remain in effect or the proposed rates will become effective
after 30 days from the date of submission; Provided, however, that the
franchising authority may toll 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 under the quarterly adjustment system pursuant to Section 76.922(d),
are within the Commission's permitted basic service tier charge or actual
cost of equipment as defined in Sec. Sec. 76.922 and 76.923, or if a cable operator
has submitted a cost-of-service showing pursuant Sec. Sec. 76.937(c) and 76.924,
seeking to justify a rate above the Commission's basic service tier charge
as defined in Sec. Sec. 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 follows:
(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-of-service showings.
(c) If a franchising authority has availed itself of the additional 90 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 all amounts
received by reason of the rate in issue and on whose behalf such amounts
were paid.
(d) A franchising authority may request, pursuant to a petition for special
relief under Sec. 76.7, that the Commission examine a cable operator's
cost-of-service showing, submitted to the franchising authority as
justification of basic tier rates, within 30 days of receipt of a
cost-of-service showing. In its petition, the franchising authority shall
document its reasons for seeking Commission assistance. The franchising
authority shall issue an order stating that it is seeking Commission
assistance and serve a copy before the 30-day deadline on the cable operator
submitting the cost showing. The cable operator shall deliver a copy of the
cost showing, together with all relevant attachments, to the Commission
within 15 days of receipt of the local authority's notice to seek Commission
assistance. The Commission shall notify the local franchising authority and
the cable operator of its ruling and of the basic tier rate, as established
by the Commission. The rate shall take effect upon implementation by the
franchising authority of such ruling and refund liability shall be governed
thereon. The Commission's ruling shall be binding on the franchising
authority and the cable operator. A cable operator or franchising authority
may seek reconsideration of the ruling pursuant to Sec. 1.106(a)(1) of this
chapter or review by the Commission pursuant to Sec. 1.115(a) of this chapter.
(e) Notwithstanding paragraphs (a) through (d) of this section, when the
franchising authority is regulating basic service tier rates, a cable
operator that sets its rates pursuant to the quarterly rate adjustment
system pursuant to Sec. 76.922(d) may increase its rates for basic service to
reflect the imposition of, or increase in, franchise fees or Commission
cable television system regulatory fees imposed pursuant to 47 U.S.C. 159.
For the purposes of paragraphs (a) through (c) of this section, the
increased rate attributable to Commission regulatory fees or franchise fees
shall be treated as an “existing rate”, subject to subsequent review and
refund if the franchising authority determines that the increase in basic
tier rates exceeds the increase in regulatory fees or in franchise fees
allocable to the basic tier. This determination shall be appealable to the
Commission pursuant to Sec. 76.944. When the Commission is regulating basic
service tier rates pursuant to Sec. 76.945 or cable programming service rates
pursuant to Sec. 76.960, an increase in those rates resulting from franchise
fees or Commission regulatory fees shall be reviewed by the Commission
pursuant to the mechanisms set forth in Sec. 76.945. A cable operator must
adjust its rates to reflect decreases in franchise fees or Commission
regulatory fees within the periods set forth in Sec. 76.922(d)(3)(i),(iii).
(f) For an operator that sets its rates pursuant to the quarterly rate
adjustment system pursuant to Section 76.922(d), cable television system
regulatory fees assessed by the Commission pursuant to 47 U.S.C. Sec. 159 shall
be recovered in monthly installments during the fiscal year following the
year for which the payment was imposed. Payments shall be collected in equal
monthly installments, except that for so many months as may be necessary to
avoid fractional payments, an additional $0.01 payment per month may be
collected. All such additional payments shall be collected in the last month
or months of the fiscal year, so that once collections of such payments
begin there shall be no month remaining in the year in which the operator is
not entitled to such an additional payment. Operators may not assess
interest. Operators may provide notice of the entire fiscal year's
regulatory fee pass-through in a single notice.
(g) A cable operator that submits for review a proposed change in its
existing rates for the basic service tier and associated equipment costs
using the annual filing system pursuant to Section 76.922(e) shall do so no
later than 90 days from the effective date of the proposed rates. The
franchising authority will have 90 days from the date of the filing to
review it. However, if the franchising authority or its designee concludes
that the operator has submitted a facially incomplete filing, the
franchising authority's deadline for issuing a decision, the date on which
rates may go into effect if no decision is issued, and the period for which
refunds are payable will be tolled while the franchising authority is
waiting for this information, provided that, in order to toll these
effective dates, the franchising authority or its designee must notify the
operator of the incomplete filing within 45 days of the date the filing is
made.
(1) If there is a material change in an operator's circumstances during the
90-day review period and the change affects the operator's rate change
filing, the operator may file an amendment to its Form 1240 prior to the end
of the 90-day review period. If the operator files such an amendment, the
franchising authority will have at least 30 days to review the filing.
Therefore, if the amendment is filed more than 60 days after the operator
made its initial filing, the operator's proposed rate change may not go into
effect any earlier than 30 days after the filing of its amendment. However,
if the operator files its amended application on or prior to the sixtieth
day of the 90-day review period, the operator may implement its proposed
rate adjustment, as modified by the amendment, 90 days after its initial
filing.
(2) If a franchising authority has taken no action within the 90-day review
period, then the proposed rates may go into effect at the end of the review
period, subject to a prospective rate reduction and refund if the
franchising authority subsequently issues a written decision disapproving
any portion of such rates, provided, however, that in order to order a
prospective rate reduction and refund, if an operator inquires as to whether
the franchising authority intends to issue a rate order after the initial
review period, the franchising authority or its designee must notify the
operator of its intent in this regard within 15 days of the operator's
inquiry. If a proposed rate goes into effect before the franchising
authority issues its rate order, the franchising authority will have 12
months from the date the operator filed for the rate adjustment to issue its
rate order. In the event that the franchising authority does not act within
this 12-month period, it may not at a later date order a refund or a
prospective rate reduction with respect to the rate filing.
(3) At the time an operator files its rates with the franchising authority,
the operator may give customers notice of the proposed rate changes. Such
notice should state that the proposed rate change is subject to approval by
the franchising authority. If the operator is only permitted a smaller
increase than was provided for in the notice, the operator must provide an
explanation to subscribers on the bill in which the rate adjustment is
implemented. If the operator is not permitted to implement any of the rate
increase that was provided for in the notice, the operator must provide an
explanation to subscribers within 60 days of the date of the franchising
authority's decision. Additional advance notice is only required in the
unlikely event that the rate exceeds the previously noticed rate.
(4) If an operator files for a rate adjustment under Section
76.922(e)(2)(iii)(B) for the addition of required channels to the basic
service tier that the operator is required by federal or local law to carry,
or, if a single-tier operator files for a rate adjustment based on a
mid-year channel addition allowed under Section 76.922(e)(2)(iii)(C), the
franchising authority has 60 days to review the requested rate. The proposed
rate shall take effect at the end of this 60-day period unless the
franchising authority rejects the proposed rate as unreasonable. In order to
order refunds and prospective rate reductions, the franchising authority
shall be subject to the requirements described in paragraph (g)(1) of this
section.
(5) Notwithstanding paragraphs (a) through (f) of this section, when the
franchising authority is regulating basic service tier rates, a cable
operator may increase its rates for basic service to reflect the imposition
of, or increase in, franchise fees. The increased rate attributable to
Commission regulatory fees or franchise fees shall be subject to subsequent
review and refund if the franchising authority determines that the increase
in basic tier rates exceeds the increase in regulatory fees or in franchise
fees allocable to the basic tier. This determination shall be appealable to
the Commission pursuant to Sec. 76.944. When the Commission is regulating basic
service tier rates pursuant to Sec. 76.945 or cable programming service rates
pursuant to Sec. 76.960, an increase in those rates resulting from franchise
fees or Commission regulatory fees shall be reviewed by the Commission
pursuant to the mechanisms set forth in Sec. 76.945.
(h) If an operator files an FCC Form 1205 for the purpose of setting the
rate for a new type of equipment under Section 76.923(o), the franchising
authority has 60 days to review the requested rate. The proposed rate shall
take effect at the end of this 60-day period unless the franchising
authority rejects the proposed rate as unreasonable.
(1) If the operator's most recent rate filing was based on the system that
enables them to file up to once per quarter found at Section 76.922(d), the
franchising authority must issue an accounting order before the end of the
60-day period in order to order refunds and prospective rate reductions.
(2) If the operator's most recent rate filing was based on the annual rate
system at Section 76.922(e), in order to order refunds and prospective rate
reductions, the franchising authority shall be subject to the requirements
described in paragraph (g)(1) of this section.
[ 58 FR 29753 , May 21, 1993, as amended at 59 FR 17973 , Apr. 15, 1994; 59 FR 53115 , Oct. 21, 1994; 60 FR 52119 , Oct. 5, 1995; 61 FR 18978 , Apr. 30, 1996]
Effective Date Note: At 60 FR 52119 , Oct. 5, 1995, in Sec. 76.933, paragraphs
(a), (b), (e), and (f) were revised; (g) and (h) were added. This amendment
contains information collection and recordkeeping requirements and will not
become effective until 30 days after approval has been given by the Office
of Management and Budget.
Goto Section: 76.930 | 76.934
Goto Year: 2007 |
2009
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