WPC& 2BJZ Courier#|x 'px6X@KX@HP LaserJet 4 PostScriptHPLA4POS.PRSx  @hhhh' CX@2%6[Lk Z x  @UQp #|x '"S^2CRddCCCdq2C28dddddddddd88qqqYzoCNzoozzC8C^dCYdYdYCdd88d8ddddCN8ddddY`(`lC2CC!CCCCCCCCCCd8YYYYYYzYzYzYzYC8C8C8C8ddddddddddYdddddodYYYYYYdzYzYzYzYdddddddCdCdCCCdNCdz8zCzCzCz8dddddCCCoNoNoNoNzCzCzCdddddzYzYNF2[dCYddddd7>d<d<$YYdCCddooCYd<d<+oodCCddddCo-should, therefore, be addressed separately.@!># Y&-ԍId.@  "'!0*((("Ԍ Y- B. Discussion  Y- 3 11. ` ` Cable system regulatory fees are mandated by Congress, collected by the  d(#<Commission, and are intended to reimburse the Commission for administering its regulatory  Y- d(#responsibilities under the Communications Act of 1934. As such, they are exceptional, newly  d(#ximposed, governmentallyassessed fees that further the purposes of the Communications Act.  d(#These fees are also beyond the control of the cable operator. Furthermore, the fees are easily  d(#measurable in amount. Consistent with the Commission's prior decision to determine on a case YI- d(#bycase basis whether categories of costs should be accorded external cost treatment,Dp "I Y -ԍSee Implementation of Sections of the Cable Television Consumer Protection and  Y -Competition Act of 1992: Rate Regulation, MM Docket No. 92266, First Order on Reconsideration, Second Report and Order, and Third Notice of Proposed Rulemaking,  Y -9 FCC Rcd 1164 (1993) (First Rates Reconsideration Order) at 12111212, paras. 8990. we  d(#determine that Commission regulatory fees should be accorded external cost treatment under our  Y -price cap rules governing cable service rates.Dp  #L : Y-ԍThe Regulatory Fees Order,  implementing regulatory fees on cable television systems, also provided that, for fiscal year 1994, each Cable Television Antenna Relay Service (CARS) licensee would be assessed a regulatory fee of $220 per license by the  Y-Commission. Regulatory Fees Order at Appendix B, para. 30, 59 Fed. Reg. at 31007. We decline to provide for the external cost treatment of CARS regulatory fees. CARS license regulatory fees are assessed on a flat fee basis of $220 per license and should not represent significant amounts to most operators. We will consider the need to permit external cost treatment of CARS regulatory fees for small systems upon completion of our cost studies.   Y - ?12.` ` We further determine that cable system regulatory fees should be directly assigned  d(#to the basic service tier. Direct assignment to the basic service tier is appropriate because the  d(#cable system regulatory fees are assessed on a per subscriber basis and all subscribers receive  Y - d(#ythe basic service tier. The Commission's regulatory fees order defines a "subscriber" in a  d(#manner consistent with this method of assignment as "a member of the general public who  Yz- d(#receives broadcast programming distributed by a cable television system...." (emphasis added).$zN  Yy- Regulatory Fees Order at Appendix B, n.4, 59 Fed. Reg. at 31007. ā  Ye- d(#,Broadcast programming is required to be offered on the basic service tier. d%e Y!-ԍ47 U.S.C.  543(b)(7); 47 C.F.R.  76.901(a).d In addition, if we  d(#were to permit cable systems to assign all of the regulatory fee to the CPS tiers, then basiconly  d(#isubscribers would not pay any of the regulatory fee even though the fee is assessed on a per  d(#subscriber basis and is intended to reimburse the agency for more than CPS tier regulation.  d(#And, if we were to allow cable systems to allocate the fee among basic and CPS tiers on a  d(#weighted or other basis, then some subscribers would pay more than three cents a month and  d(#other subscribers would pay less. Assignment to the basic service tier is also consistent with the  d(#fact that regulatory fees are intended to reimburse the Commission for the costs of regulating" %0*(("  d(#-cable service, including Commission oversight of the basic service tier and other regulatory  d(#;activities such as rulemaking, the direct regulation of some systems' basic tier rates and review  d(#of local franchising authorities' decisions. We find, therefore, that the most equitable means of  d(#<permitting cable systems to pass through to subscribers regulatory fees is by requiring cable systems to directly assign the fee entirely to the basic service tier.  Yv- 13.` ` We believe that cable operators should be permitted to adjust rates on account of  d(#;the regulatory fees without prior regulatory approval, subject to our requirements for 30 days'  YH- d(#advance notice.r&H Y -ԍSee 47 C.F.R.  76.945(c), 76.958, 76.964(b).r Thus, operators may adjust rates to reflect the newly imposed regulatory fees,  Y1- d(#and any subsequent increases in the fees, in the same manner that rates may be adjusted for  Y - d(# increases in franchise fees, as discussed above. Decreases in Commission regulatory fees will  d(#Kcontinue to be treated as external cost decreases under our existing rules and must be passed  Y -through to subscribers in accordance with those rules.i' { Y-ԍSee 47 C.F.R.  76.922(d)(3)(i), (iii). i  Y - A14.` ` Operators shall recover the annual regulatory fee according to the following  d(#xschedule. Regulatory fees of $0.37 per subscriber that were due on August 12, 1994 and/or  d(#September 9, 1994 for fiscal year 1994 (October 1, 1993 September 30, 1994) shall be  Yy- d(#recovered from subscribers over a ten month period beginning in December of 1994 and ending  d(#Kin September of 1995. For the first three months of this ten month period (December 1994  d(#<February 1995), operators shall recover $0.03 per month per subscriber. For the remaining  d(#seven months (March 1995 September 1995), operators shall recover $0.04 per month per  d(#subscriber. Operators may provide notice of the entire fiscal year's regulatory fee passthrough  d(#in a single notice so long as that notice states that the fee passthrough will increase from $0.03  d(#Kin February 1995 to $0.04 in March 1995. Regulatory fees that are assessed for subsequent  Y- d(#fiscal years shall be recovered in twelve monthly installments during the fiscal year following  d(#the fiscal year for which the payment was imposed. For example, operators may begin  d(#recovering regulatory fees paid for fiscal year 1995 during the 12 month period from October  d(#1995 through September 1996. Payments shall be collected in equal monthly installments,  d(#wexcept that for so many months as may be necessary to avoid fractional payments, an additional  d(#;$0.01 payment per month may be collected. All such additional payments shall be collected in  d(#the last month or months of the fiscal year, so that once collections of such payments begin there  d(#shall be no month remaining in the year in which the operator is not entitled to such an  d(#additional payment. Recovery of regulatory fees paid for fiscal year 1995 and subsequent fiscal  Y - d(#years is, of course, subject to the notice requirements contained in this Order. We recognize  d(#jthat operators will not recover the regulatory fee until after they have paid it. However,  Y- d(#ioperators may not assess interest on the amount charged to subscribers for regulatory fees in  d(#order to avoid the substantial administrative burdens on operators and regulators in determining  Y!-and reviewing interest calculations.  Y"- "" .'0*((#"Ԍ Y- IV. Regulatory Flexibility Act Analysis  Y-  Y- Final Analysis for the Fourth Order on Reconsideration   Y-  15.` ` Pursuant to the Regulatory Flexibility Act of 1980, 5 U.S.C.  601612, the  Y-Commission's final analysis with respect to the Fourth Order on Reconsideration is as follows:  Yd-   16.` ` Need and purpose of this action. The Commission, in compliance with  3 of the  d(#Cable Television Consumer Protection and Competition Act of 1992, 47 U.S.C.  543 (1992)  d(#pertaining to rate regulation, adopts revised rules and procedures intended to ensure cable  d(#subscribers of reasonable rates for cable services with minimum regulatory and administrative burden on cable entities.  Y -  17.` ` Summary of issues raised by the public in response to the Initial Regulatory  Y - d(#Flexibility Analysis. There were no comments submitted in response to the Initial Regulatory  d(#Flexibility Analysis. The Chief Counsel for Advocacy of the United States Small Business  d(#Administration (SBA) filed comments in the original rulemaking order. The Commission  Y~-addressed the concerns raised by the Office of Advocacy in the Rate Order.l(~ Y-ԍ Rate Order at 59785983, paras. 566574.l  YR-   18.` ` Significant alternatives considered and rejected. Petitioners representing cable  Y;- d(#interests and franchising authorities submitted several alternatives aimed at minimizing  d(#administrative burdens. The Commission responded to these comments in previous Orders in  Y - d(#this docket. Although the Commission is issuing this Order on its own motion, the Commission  d(#has attempted to accommodate commenters' concerns and to reduce administrative burdens by providing an expedited method to pass through franchise fees and Commission regulatory fees.  Y-  X-  Yq$- "q$ {(0*((%"Ԍ Y-V. Ordering Clause s  Y- 19.` ` Accordingly, IT IS ORDERED that, pursuant to Sections 4(i), 303(r), and 623  d(#of the Communications Act of 1934, as amended, 47 U.S.C.  154(i), 303(r), and 543, that,  d(#Sections 76.922, 76.924, and 76.933 of the Commission's rules, 47 C.F.R. Sections 76.922,  Y-76.924, and 76.933 ARE AMENDED as set forth in the attached Appendix.  Y`- 20.` ` IT IS FURTHER ORDERED that, this Fourth Order on Reconsideration IS EFFECTIVE 30 days after the date of publication in the Federal Register. ` `  hhCFEDERAL COMMUNICATIONS COMMISSION  Y -  hhCWilliam F. Caton(#h ` `  hhCActing Secretary"  (0*(("  X- b APPENDIX ă Part 76 of Chapter I of Title 47 of the Code of Federal Regulations is amended as follows: PART 76 CABLE TELEVISION SERVICE  Y_-1.The authority citation for Part 76 continues to read as follows:  v Authority: Secs. 2, 3, 4, 301, 303, 307, 308, 309, 48 Stat., as amended, 1064, 1065,  d(#1066, 1081, 1082, 1083, 1084, 1085, 1101; 47 U.S.C. Secs. 152, 153, 154, 301, 303, 307, 308, 309, 532, 533, 535, 542, 543, 552, as amended, 106 Stat. 1460.  Y -2.Section 76.922(d)(3)(iv) is amended to add section (F) to read as follows:   76.922 Rates for the basic service tier and cable programming services tiers. d      (d)(3)(iv) External costs shall consist of costs in the following categories: ` ` (A) State and local taxes applicable to the provision of cable television service; ` ` (B) Franchise fees;  ` ` (C) Costs of complying with franchise requirements, including costs of providing  v public, educational, and governmental access channels as required by the franchising authority;  ` ` (D) Retransmission consent fees and copyright fees incurred for the carriage of broadcast signals; ` ` (E) Other programming costs; and  ` ` (F) Commission cable television system regulatory fees imposed pursuant to 47  YN-U.S.C  159. d      Y- v !3.Section 76.924 is amended to add a new paragraph (f)(5) to read as follows and to redesignate existing paragraphs (5) and (6) as paragraphs (6) and (7):  76.924 Cost accounting and cost allocation requirements. d      v (f)(5) Commission cable television system regulatory fees imposed pursuant to 47 U.S.C.  Y;&- 159 shall be directly assigned to the basic service tier. "$' (0*((P("Ԍd      Y-4.Section 76.933 is amended to add paragraphs (e) and (f) to read as follows:   76.933 Franchising authority review of basic cable rates and equipment costs. :l     ` `  Y1- (e)` ` Notwithstanding the foregoing, when the franchising authority is regulating basic  d(#kservice tier rates, a cable operator may increase its rates for basic service to reflect the  d(#imposition of, or increase in, franchise fees or Commission cable television system regulatory  d(#zfees imposed pursuant to 47 U.S.C.  159, upon 30 days' notice to subscribers and the  d(#yfranchising authority and, where required by Section 76.958, to the Commission. For the  d(#purposes of paragraphs (a) (c) of this Section 76.933, the increased rate attributable to  d(#Commission regulatory fees or franchise fees shall be treated as an "existing rate," subject to  d(#subsequent review and refund if the franchising authority determines that the increase in basic  d(#tier rates exceeds the increase in regulatory fees or in franchise fees allocable to the basic tier.  d(#This determination shall be appealable to the Commission pursuant to Section 76.944 of these  d(#rules. When the Commission is regulating basic service tier rates pursuant to Section 76.945  d(#of these rules or cable programming service rates pursuant to Section 76.960 of these rules, an  d(#increase in those rates resulting from franchise fees or Commission regulatory fees shall be  d(#reviewed by the Commission pursuant to the mechanisms set forth in Section 76.945 of these  d(#rules. A cable operator must adjust its rates to reflect decreases in franchise fees or Commission regulatory fees within the periods set forth in Section 76.922(d)(3)(i),(iii) of these rules.  Y- "(f)` ` Cable television system regulatory fees assessed by the Commission pursuant to  d(#47 U.S.C.  159 shall be recovered in monthly installments during the fiscal year following the  d(#fiscal year for which the payment was imposed. Payments shall be collected in equal monthly  d(#Jinstallments, except that for so many months as may be necessary to avoid fractional payments,  d(#an additional $0.01 payment per month may be collected. All such additional payments shall  d(#be collected in the last month or months of the fiscal year, so that once collections of such  d(#payments begin there shall be no month remaining in the year in which the operator is not  d(#[entitled to such an additional payment. Operators may not assess interest. Operators may  Y-provide notice of the entire fiscal year's regulatory fee passthrough in a single notice.  Y-