PUBLIC NOTICE
FEDERAL COMMUNICATIONS COMMISSION
1919 M STREET, N.W.
WASHINGTON, D.C. 20554
     
News media information 202/418-0500  Recorded listing of releases and texts 202/632-0002.
                                                                DA 95- 1366
                                                                             
                                        
 Report CS 95-8                    CABLE SERVICES ACTION                     June 19, 1995

COMMISSION APPLIES "PERMIT BUT DISCLOSE" EX PARTE RULES TO
RECONSIDERATION OF UNITED ARTISTS CABLE OF BALTIMORE (DA 95-737)


     In United Artists Cable of Baltimore, DA 95-737 (Cab. Serv. Bur., released April 6,
1995), the Cable Services Bureau resolved an appeal filed by United Artists Cable of Baltimore of
a cable rate order adopted by the City of Baltimore, Maryland.   In reaching its decision, the
Bureau concluded that franchise fees are a tax and that the term "gross revenues," in Section 622
of the Communications Act, 47 U.S.C. 542, excludes the amount a cable operator collects from
subscribers that is attributable to franchise fees imposed by the local franchising authority. 
Petitions for reconsideration have been filed in this proceeding and raise important concerns
regarding the impact of these conclusions on the proper calculation of franchise fees throughout the
country.
 
     In general, appeals of local rate decisions are treated, for ex parte purposes, as "restricted"
proceedings under Section 1.1208 of the Commission's Rules,  47 C.F.R.  1.1208.  See Third
Order on Reconsideration (MM Docket Nos. 92-266 & 92-262), 9 FCC Rcd 4316, 4342 n.38
(1994).  Resolution of the issues in this proceeding, however, could have a significant impact on a
large number of persons who have not previously participated as parties to this proceeding.  For
this reason, the public interest would be served by modifying the ex parte rules to permit a broader
range of views and participation on these issues and to provide for a fuller record upon which a
final decision may be made.   Therefore,  in accordance with Section 1.1200(a) of the
Commission's Rules, 47 C.F.R. 1.1200(a), this rate appeal proceeding will be treated, for ex
parte purposes, as a "non-restricted" proceeding and subject to the "permit but disclose"
requirements under Section 1.1206 of the Rules, 47 C.F.R. 1.1206.  Any ex parte presentations
that are made subsequent to the release of this notice will be permissible but must be disclosed in
accordance with the requirements of Section 1.1206(a).  47 C.F.R. 1.1206(a).  
Action by the Chief, Cable Services Bureau.

     Cable Services Bureau contact: David Roberts at (202) 416-0936.
     News Media contact: Morgan Broman (202) 416-0852

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