Goto Section: 76.941 | 76.943 | Table of Contents
FCC 76.942
Revised as of October 1, 2008
Goto Year:2007 |
2009
Sec. 76.942 Refunds.
(a) A franchising authority (or the Commission, pursuant to Sec. 76.945) may
order a cable operator to 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. An
operator's liability for refunds shall be based on the difference between
the old bundled rates and the sum of the new unbundled program service
charge(s) and the new unbundled equipment charge(s). Where an operator was
charging separately for program services and equipment but the rates were
not in compliance with the Commission's rules, the operator's refund
liability shall be based on the difference between the sum of the old
charges and the sum of the new, unbundled program service and equipment
charges. Before ordering a cable operator to refund previously paid rates to
subscribers, a franchising authority (or the Commission) must give the
operator notice and opportunity to comment.
(b) An operator's liability for refunds in 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 run as follows:
(1) From the date the operator implements a prospective rate reduction back
in time to September 1, 1993, or one year, whichever is shorter.
(2) From the date a franchising authority issues an accounting order
pursuant to Sec. 76.933(c), to the date a prospective rate reduction is issued,
then back in time from the date of the accounting order to the effective
date of the rules; however, the total refund period shall not exceed one
year from the date of the accounting order.
(3) Refund liability shall be calculated on the reasonableness of the rates
as determined by the rules in effect during the period under review by the
franchising authority or the Commission.
(d) The cable operator, in its discretion, may implement a refund in the
following manner:
(1) By returning 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 service 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.
(e) Refunds shall include interest computed at applicable rates published by
the Internal Revenue Service for tax refunds and additional tax payments.
(f) Once an operator has implemented a rate refund to subscribers in
accordance with a refund order by the franchising authority (or the
Commission, pursuant to paragraph (a) of this section), the franchising
authority must return to the cable operator an amount equal to that portion
of the franchise fee that was paid on the total amount of the refund to
subscribers. The franchising authority must promptly return the franchise
fee overcharge either in an immediate lump sum payment, or the cable
operator may deduct it from the cable system's future franchise fee
payments. The franchising authority has the discretion to determine a
reasonable repayment period, but interest shall accrue on any outstanding
portion of the franchise fee starting on the date the operator has completed
implementation of the refund order. In determining the amount of the refund,
the franchise fee overcharge should be offset against franchise fees the
operator holds on behalf of the franchising authority for lump sum payment.
The interest rate on any refund owed to the operator presumptively shall be
11.25%.
[ 58 FR 29753 , May 21, 1993, as amended at 58 FR 46736 , Sept. 2, 1993; 59 FR 17974 , Apr. 15, 1994; 60 FR 52120 , Oct. 5, 1995]
Effective Date Note: At 60 FR 52120 , Oct. 5, 1995, in Sec. 76.942, paragraph
(f) was revised. This paragraph 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: 76.941 | 76.943
Goto Year: 2007 |
2009
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