§ 76.504   Limits on carriage of vertically integrated programming.

   (a) Except as otherwise provided in this section no cable operator
   shall devote more than 40 percent of its activated channels to the
   carriage of national video programming services owned by the cable
   operator or in which the cable operator has an attributable interest.

   (b) The channel occupancy limits set forth in paragraph (a) of this
   section shall apply only to channel capacity up to 75 channels.

   (c) A cable operator may devote two additional channels or up to 45
   percent of its channel capacity, whichever is greater, to the carriage
   of video programming services owned by the cable operator or in which
   the cable operator has an attributable interest provided such video
   programming services are minority-controlled.

   (d) Cable operators carrying video programming services owned by the
   cable operator or in which the cable operator holds an attributable
   interest in excess of limits set forth in paragraph (a) of this section
   as of December 4, 1992, shall not be precluded by the restrictions in
   this section.

   (e) Minority-controlled means more than 50 percent owned by one or more
   members of a minority group.

   (f) Minority means Black, Hispanic, American Indian, Alaska Native,
   Asian and Pacific Islander.

   Note 1: Attributable interest shall be defined by reference to the
   criteria set forth in Notes 1 through 5 to § 76.501 provided however,
   that:

   (a) Notes 2(f) and 2(g) to § 76.501 to shall not apply;

   (b)(1) Subject to Note 2(i) to § 76.501, a limited partnership interest
   shall be attributed to a limited partner unless that partner is not
   materially involved, directly or indirectly, in the management or
   operation of the video programming-related activities of the
   partnership and the relevant entity so certifies. An interest in a
   Limited Liability Company (“LLC”) or Registered Limited Liability
   Partnership (“RLLP”) shall be attributed to the interest holder unless
   that interest holder is not materially involved, directly or
   indirectly, in the management or operation of the video
   programming-related activities of the partnership and the relevant
   entity so certifies.

   (2) In the case of a limited partnership, in order for an entity to
   make the certification set forth in paragraph (b)(1) of this section,
   it must verify that the partnership agreement or certificate of limited
   partnership, with respect to the particular limited partner exempt from
   attribution, establishes that the exempt limited partner has no
   material involvement, directly or indirectly, in the management or
   operation of the video programming activities of the partnership. In
   the case of an LLC or RLLP, in order for an entity to make the
   certification set forth in paragraph (g)(1) of this section, it must
   verify that the organizational document, with respect to the particular
   interest holder exempt from attribution, establishes that the exempt
   interest holder has no material involvement, directly or indirectly, in
   the management or operation of the video programming activities of the
   LLC or RLLP. The criteria which would assume adequate insulation for
   purposes of these certifications are described in the Report and Order,
   FCC No. 99-288, CS Docket No. 98-82 (released October 20, 1999). In
   order for the Commission to accept the certification, the certification
   must be accompanied by facts, e.g. in the form of documents, affidavits
   or declarations, that demonstrate that these insulation criteria are
   met. Irrespective of the terms of the certificate of limited
   partnership or partnership agreement, or other organizational document
   in the case of an LLC or RLLP, however, no such certification shall be
   made if the individual or entity making the certification has actual
   knowledge of any material involvement of the limited partners, or other
   interest holders in the case of an LLC or RLLP, in the management or
   operation of the video-programming activities of the partnership or LLC
   or RLLP.

   (3) In the case of an LLC or RLLP, the entity seeking insulation shall
   certify, in addition, that the relevant state statute authorizing LLCs
   permits an LLC member to insulate itself as required by our criteria.

   (c) Officers and directors of an entity covered by this rule are
   considered to have a cognizable interest in the entity with which they
   are so associated. If any such entity engages in activities other than
   video-programming activities, it may request the Commission to waive
   attribution for any officer or director whose duties and
   responsibilities are wholly unrelated to the entity's video-programming
   activities. In the case of common or appointed directors and officers,
   if common or appointed directors or officers have duties and
   responsibilities that are wholly unrelated to video-programming
   activities for both entities, the relevant entity may request the
   Commission to waive attribution of the director or officer. The
   officers and directors of a parent company of a video-programming
   business, with an attributable interest in any such subsidiary entity,
   shall be deemed to have a cognizable interest in the subsidiary unless
   the duties and responsibilities of the officer or director involved are
   wholly unrelated to the video-programming subsidiary, and a
   certification properly documenting this fact is submitted to the
   Commission. The officers and directors of a sister corporation of a
   cable system shall not be attributed with ownership of that entity by
   virtue of such status.

   Note 2 to § 76.504: Section 76.1710 contains recordkeeping requirements
   for cable operators with regard to attributable interests.

   [ 58 FR 60141 , Nov. 15, 1993, as amended at  64 FR 67196 , Dec. 1, 1999;
    65 FR 53615 , Sept. 5, 2000]

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