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A.  a7DocumentgDocument Style StyleyXX` ` (#` 2t/ = BibliogrphyBibliography:X (# a1Right ParRight-Aligned Paragraph Numbers:`S@ I.  X(# a2Right ParRight-Aligned Paragraph Numbers C @` A. ` ` (#` a3DocumentgDocument Style Style B b  ?  1.  2  e a3Right ParRight-Aligned Paragraph Numbers L! ` ` @P 1. ` `  (# a4Right ParRight-Aligned Paragraph Numbers Uj` `  @ a. ` (# a5Right ParRight-Aligned Paragraph Numbers _o` `  @h(1)  hh#(#h a6Right ParRight-Aligned Paragraph Numbersh` `  hh#@$(a) hh#((# 2L||a7Right ParRight-Aligned Paragraph NumberspfJ` `  hh#(@*i) (h-(# a8Right ParRight-Aligned Paragraph NumbersyW"3!` `  hh#(-@p/a) -pp2(#p Tech InitInitialize Technical Style. k I. A. 1. a.(1)(a) i) a) 1 .1 .1 .1 .1 .1 .1 .1 Technicala1DocumentgDocument Style Style\s0  zN8F I. ׃  2~:a5TechnicalTechnical Document Style)WD (1) . a6TechnicalTechnical Document Style)D (a) . a2TechnicalTechnical Document Style<6  ?  A.   a3TechnicalTechnical Document Style9Wg  2  1.   2!{ !a4TechnicalTechnical Document Style8bv{ 2  a.   a1TechnicalTechnical Document StyleF!<  ?  I.   a7TechnicalTechnical Document Style(@D i) . a8TechnicalTechnical Document Style(D a) . 2'3!"e&U'Doc InitInitialize Document Stylez   0*0*0*  I. A. 1. a.(1)(a) i) a) I. 1. A. a.(1)(a) i) a)DocumentgPleadingHeader for Numbered Pleading PaperE!n    X X` hp x (#%'0*,.8135@8:ddzzzzzzzzzzCCCCozdddddddYYYYY8888dddddddndddddYd2A5> X2|؃>#Xj\  P6G;XP#  X2`)(# DA 991252  Xv2`M(# CSBILR 992  X_2`(# Released: June 25, 1999 ă  X12XX` ` X ,XhXhhXXXppXXX   (#  City of Bowie, Maryland c/o David Deutsch City Manager 2614 Kenhill Drive Bowie, Maryland 20715 Dear Mr. Deutsch: On May 18, 1999, I responded to a December 7, 1998 letter from the City of Bowie regarding the proper regulatory treatment of a proposed public, educational, and governmental ("PEG") access fee.  X2A number of parties have requested that I clarify my response. See, e.g., ex parte letter  X2of May 24, 1999 from Nicholas P. Miller; ex parte letter of May 27, 1999 from John W.  X2Pestle; ex parte letter of May 27, 1999 from Lee Ruck, Executive Director, National Association of Telecommunications Officers and Advisors. I believe it would be useful to do so and would accordingly would ask that you substitute the following response to Question 4 for that contained in my May 18 letter.  X=2&` F  &`    &` 4)XIs the 3% PEG access fee permitted under the law or is it considered to be a franchise fee in excess of the 5% cap?ƅ  XUnder the Cable Communications Policy Act of 1984, a franchise fee is "any tax, fee, or assessment of any kind imposed by a franchising authority or other governmental entity on a cable operator or cable subscriber, or both, solely because of their status." 47 U.S.C. 542(g)(1). However, for franchises granted after October 31, 1984, a franchise fee does not include "capital costs which are required by the franchise to be incurred by the cable operator for public, educational, or governmental access facilities." 47 U.S.C. 542(g)(2)(C).ƅ   F XxThe legislative history explains that "Subsection 622(g)(2)(C) establishes a specific provision for PEG access in new franchises. In general, this section defines as a franchise fee only monetary payments made by the cable operator, and does not include as a "fee" any franchise requirements for the provision of services, facilities"(0*0*(&" or equipment. As regards PEG access in new franchises, payment for capital costs required by the franchise to be made by the cable operator are not defined as fees under the provision. These requirements may be established by the franchising authority under Section 611(b) or Section 624(b)(1). In addition, any payments which a cable operator makes voluntarily relating to support of public, educational and governmental access and which are not required by the franchise would not be  Xv2subject to the 5 percent franchise fee cap." See  H.R. Rep. No. 98934 at 65 (1984)  Xa2reprinted in 1984 U.S.C.C.A.N. 4702; see also 1984 U.S.C.C.A.N. at 4753 (Colloquy between Rep. Wirth and Rep. Bliley). ƒ"  X 2  I hope this is helpful. Please do not hesitate to contact me if you require further assistance. ` `  ,hhhSincerely, ` `  ,hhhDeborah A. Lathen ` `  ,hhhChief, Cable Services Bureau  X2cc:Denise Mahoney John W. Pestle Nicholas P. Miller Lee Ruck Ken Fellman