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A. a.(1)(a) i) a)DocumentgPleadingHeader for Numbered Pleading PaperE!n    X X` hp x (#%'0*,.8135@8:/@5Bullet ListIndented Bullet List*M0 Y XX` ` (#` "5@^2Coddȧ8CCdr2C28ddddddddddCCrrrdzNdzoȐC8CtdCdoYoYCdo8Co8odooYNCodddYO,Oh2CC!CCPRCdodddddȐYYYYYN8N8N8N8oddddooooddoddddzodddYYYYYYddddooPoNoNCNodo8RoodȐYYoNoNNF2ldCddddddhGvPtG5,qGkYYvGkPtGtb\PbPPeGtGkbtY|bbbtev5PtttbGbbbbu55PPPPtvPPPtttb5\PG5ؐJppZ`]mmVVjjvvsp}vvJv]VV3J3Jʀ}}}}}}}}M=f}Times New Roman (TT)Courier New (TT)Times New Roman (Bold) (TT)Times New Roman (Italic) (TT)PYGYG8PY,5Y,YPYYG>5YPtPPGPPPP*PPPPP5PPPPPPPPY,tPtPtPtPtPttGkGkGkGkG>,>,>,>,tY|P|P|P|PtYtYtYtYtPtPtZ|P|PtPtP`YsPtPsPsFsFtPtPsmjFkPkPjF}P|P|P|P|P|Y|Y=,PYPP>Y\PP|Yj-j@kPk>k,sZsZtY}P|PvsFsFtPZ=Y>Z=YPj@j6kPtYsZtYtYsZtYttPjFkGjFtYkPtYYPkPtPm5PP555WxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxNtttPPP5PDDPPPPPP8PPPP855\\P))PPbbyPPtPeYY5\P8"ttPt\ttP厎.P55tbtttttttttt5PtPYPtkP5PtGP\t|nttttttttttMttttttkb|tD_tttttttPtttttttPttttPtttttttttttttttttttttttttttttttttttttttttttt5ttt5ttt5ttt5ttttttttttttttbkYbYkGk>kG|GtG>,|GkYYtGkP|GtbbPbPPkGtGkbtY|bbbtk|>P|ttbGbbbbu55PPPPt|PPPtttb5bPG5ؐJppZ`]mmVVjjvvsp}vvJv]VV3J3Jʀ}}}}}}}}M=f}"5@^2CTdd+CCd2C28ddddddddddCCdzzzzCYozzdozzooN8NTdCddYdY8dd88Y8ddddNN8dYYYNP7Pl2CC!CCPRCddzdzdzdzdzdYzYzYzYzYC8C8C8C8dddddddddoYzddddoYdzdzdzdzdYYYzYzYzYddddddPdCdCCCdYYo8oRdddzNzRdNdNNF2idNdddddd7>d<d<CCoodCCddCoCddzzzzzzzzzzCCCCozdddddddYYYYY8888dddddddndddddYdxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxNdddCdUUddddddFddddFCCssd44ddzzddd~ooCsdF"dsd9dCCzCddoddCdYds`zUvdddCCCCzozoYNYYYN8YooYdYzzdzddYYzozzzNdzYzzzzCCdddddddzCzdYC\   pxtll\tll@\@\`L2a@@ZLf Q^*]"5@^(1<K,H6X@`7h@2b`a 1}CG TimesCourierCourier BoldCG Times BoldCG Times ItalicCG Times Bold ItalicCourier Italic2Lb X-#Xw PE37 DXP#FOR FCC RECORD ONLY $//Fourth 0rder on Reconsideration, Cable Rate Regulations, FC 94254//$ $//Amendment of Part 76, Subpart N, Cable Rate Regulation//$  FH $/76.922 Rates for the basic service tier and cable programming/$ $/76.924 Cost accounting and cost allocation requirements/$ $/76.933 Franchising authority review of basic cable rates/$  FH $///FCC 94254 10694///$ ///newjob/// FH   Xy-   *fBefore the V FEDERAL COMMUNICATIONS COMMISSION`(#gFCC 94254  XK-  9Washington, D.C. 20554 ă  X-In the Matter of ` XhhCXq )pp (#  X- ` XhhCXq ) (#  X-Implementation of Sections of hhCXq ) (#  X-the Cable Television Consumer hhCXq ) pp MM Docket No. 92266(#p  X-Protection and Competition Act hhCXq )(#  X-of 1992: Rate Regulation` XhhCXq )(# XX` ` X XXhhCXq (#  X7-  FOURTH ORDER ON RECONSIDERATION ă  X - Adopted: September 30, 1994 qXReleased: October 5, 1994(# By the Commission:  X!- I. Introduction  X#-1.` ` In this Fourth Order on Reconsideration, we consider whether to amend our price cap rules governing regulated cable service rates to permit cable operators to revise rates  XS%-for regulated cable services to reflect changes in franchise fees without receiving prior franchising authority or Commission approval. We also consider whether to amend our rules to permit external cost treatment of Commission regulatory fees applicable to cable operators  X(-and to permit these fees to be passed through to subscribers under the same procedures as"(0*0*0*&"  X-changes in franchise fees.P Xy-ԍWe take these actions on reconsideration on our own motion in order to establish a more complete implementation of Section 623 of the Cable Television Consumer Protection  XK-and Competition Act of 1992, 47 U.S.C.  543. Petitions for reconsideration in Docket MM 92266 addressing other aspects of our rate rules remain pending and will be addressed in  X-subsequent Orders.    X- II. Franchise Fees  X- A. Background  Y-2. ` ` Under the Commission's price cap rules, a cable operator is permitted to adjust its maximum monthly charge for regulated service tiers to reflect changes in certain  Yv-categories of external costs, including franchise fees.vC Y-ԍ47 C.F.R.  76.922(d)(3)(i), (iv), and (viii). Cable systems are franchised by state or local governments or by a combination thereof or, in certain circumstances, by other governmental entities such as federal military installations. The payment of fees under the terms of any franchise is authorized by Section 622(a) of the Communications Act, is limited as to amount by Section 622(b), and such fees are to be accounted for in the establishment of rates under Section 623(b)(2)(c)(V). A separate federal (FCC) regulatory fee obligation was enacted as part of the Omnibus Budget Reconciliation Act of 1993. Pub. L. No. 10366,  YN-Title VI,  6003(a), 107 Stat. 397 (approved August 10, 1993). We established the categories of external costs, which include franchise fees, following notice and comment, in  Y -our Report and Order and Further Notice of Proposed Rulemaking, 8 FCC Rcd 5631 (1993)  Y -(Rate Order) at 57835790, paras. 241254. The Rate Order also provided that franchise fees should be allocated between tiers in a manner reflective of the way in which they are  Y-assessed. Rate Order at 5790, para. 254. Consistent with the rules adopted in the Rate  Y-Order, our action herein with respect to the passthrough of both franchise and regulatory fees applies only to the extent there are net increases in the costs imposed on the system operator. Fees may not be passed through to the extent there are other fee changes that  Y-offset the increase. Ĕ If an operator's basic service tier is  Y_-being regulated in a particular franchise area by the franchising authority_C Y!-ԍAn operator becomes subject to regulation by the franchising authority after the franchising authority has become certified by the FCC to regulate basic rates, has adopted the appropriate regulations, and has notified the operator that it has been certified to regulate.  Y-See 47 C.F.R.  76.910 and 76.930. or by the  YH-Commission,fHC Yx-ԍSee 47 C.F.R.  76.913.hhCf the operator generally is not allowed under our rules to increase its rates for  Y1-the basic service tier or related equipment and installations without first submitting the proposed increase to the franchising authority or the Commission, as the case may be, for  Y -review.e 2C Y"-ԍ 47 C.F.R.  76.933 and 76.945; see also Questions and Answers on Cable Television Rate Regulation, Answer No. 4 (released by the Cable Services Bureau on July 27, 1994) (concluding that prior regulatory approval of new rates under Commission's revised rate regulations was not required where regulations required new rates to be implemented before rate justification forms were due). The Commission established the  Yu'-mechanisms for allowing regulatory review of proposed rate increases in the Rate Order  Y`(-following notice and comment.  See Rate Order at 57095710, paras. 118119.  Under our rules, a franchising authority reviewing a proposed increase in basic" _0*0*0*} "  Y-rates has an initial 30 day period to make its decision.HC Yy-ԍ47 C.F.R.  76.933.H The franchising authority may extend  Y-this period for an additional 90 days in a noncostofservice case or 150 days in a costof Y-service case.:yC Y-ԍId.: During this period, the operator's proposed increase is not in effect. When the Commission is regulating basic rates, filings regarding rate increases must be made 30  Y-days prior to the proposed effective date and such rate increases are effective on the date proposed unless the Commission issues an order deferring the effective date or denying the  Yv-rate proposal.Hv,C YS -ԍ47 C.F.R.  76.945.H With respect to cable programming service (CPS) rates, an operator must file rate increases for prior review by the Commission if the Commission has ordered the operator to reduce its CPS rates within the prior 12 months or some other period specified by  Y1-the Commission in a particular case. 1C Y-ԍ47 C.F.R.  76.960; see also e.g., FCC Form 393 at page 2, general instruction 1. In addition, when a CPS complaint against the operator is pending before the Commission, an operator must give the Commission 30 days' notice of changes in any rates, including increases in rates attributable to increases in  Y -franchise fees.T C Y--ԍ47 C.F.R.  76.958.T  Y - B. Discussion  Y-3.` ` On reconsideration, we determine that we should permit adjustments to  Yz-capped rates to reflect increases in franchise fees without prior regulatory approval. czA C Yl-ԍThis decision supersedes Answer No. 5 in the Questions and Answers released by the Cable Services Bureau on May 18, 1994 which interpreted the Commission's price cap rules as requiring prior approval before franchise fee increases could be passed through. The  Y'-Commission received requests to reconsider that Answer. See Petition for Correction and Revision filed by TKR Cable Company and Cable Telecommunications Association on June 3, 1994; and Letter from Cole, Raywid & Braverman (dated May 26, 1994) . These  Y-requests are rendered moot by this Order. ę These fees are generally set by the franchising authority itself. Thus, the fees are set by a government entity which is aware of and sensitive to the fees' impact upon consumers. Since it is the franchising authority which has set the franchise fee, prior regulatory review appears less necessary from a consumer protection standpoint than it is for other categories of external costs.  Y- 4.` ` Accordingly, as of the effective date of this Order, where the franchising  Y-authority is regulating basic rates, increases in basic rates attributable to increases in franchise fees will not be subject to the prior approval requirements for proposed rate  Y-increases set forth in Section 76.933(a)(c) of our rules. However, operators will continue to"l 0*0*0*" be required to give subscribers  d(#xand the franchising authority 30 days' advance notice of any rate change, as required by our" 0*(("  Y- d(#rules.  Yy-ԍSee 47 C.F.R.  76.964(b). This notice requirement applies whether or not a franchising authority is regulating basic service tier rates. In addition, operators will continue to be required to provide 30 days' notice to the Commission if a cable services tier  Y6-complaint is pending. See 47 C.F.R.  76.958. When the operator provides the 30 days' notice to the franchising authority, it must also  Y- d(#provide documentation that demonstrates that the rate increase has been properly calculated. 8 Y-ԍWe find it unnecessary to prescribe the precise form of this documentation. The operator need not use FCC Form 1210 since Form 1210 was not specifically designed for use in calculating rate adjustments that reflect changes in franchise fees. To the extent that Answer No. 5, in the Questions and Answers released by the Cable Services Bureau on May 18, 1994, is inconsistent on this point, it is superseded.  Y- 5.` ` As under existing rules, where the Commission is regulating basic service tier  Y- d(#[rates,W  Y-ԍSee 47 C.F.R.  76.945.W operators must give the Commission 30 days' advance notice of any such increase  Y- d(#attributable to franchise fee increases.T@  Y~-ԍSee 47 C.F.R.  76.945(c).T Operators must also give subscribers and franchising  Yv- d(#authorities 30 days' advance notice of changes in basic rates attributable to increases in franchise  Y_- d(#fees as required by our rules.T_  Y-ԍSee 47 C.F.R.  76.964(b).T In addition, where the Commission is regulating basic service  YH- d(#rates , the operator should submit with its filing to the Commission the same documentation  Y1- d(#which it would need to submit if the franchising authority were regulating basic service rates as  d(#outlined above in paragraph 4. The Commission will review such filings according to its  Y -existing rules.Q  YZ-ԍSee 47 C.F.R.  76.945.Q  Y - 6.` ` The franchising authority or the Commission, as appropriate, may then review the  Y - d(#passthrough of increases in franchise fees1x Y Y-ԍThe procedures set forth in Section 76.933 of our rules will apply to franchising authority review of rate increases resulting from franchise fee passthroughs, except that the increased rate attributable to the increased franchise fee will be treated as an "existing rate" for the purposes of Section 76.933. Thus, franchising authorities will have an initial 30day period, beginning on the date the operator provides notice and supporting documentation, whichever is later, to review the rates. The rate increase will go into effect at the end of this 30day period. The franchising authority may extend the period for reviewing rates for an additional 90 days in a noncostofservice case or 150 days in a costofservice case by issuing a tolling order within the initial 30 day period. It may further extend its period for"'0*((W'" review by issuing an accounting order prior to the expiration of the 90 or 150 day additional  Yy-period. See 47 C.F.R.  76.933(a)(c). However, during these periods the increased rate is  Yd-in effect. #x6X@`7iX@# #Xw PE37XP# #Xw PE37XP#Consistent with Section 76.933, we will not impose an obligation on franchising authorities to affirmatively approve such an increase. They will not have to take any action unless they wish to disapprove the increase. The procedures set forth in Section 76.945 will  Y<apply to Commission review of rate increases resulting from franchise fee passthroughs. #x6X@`7iX@#  and may order a prospective rate reduction and" 0*((z "  d(#irefunds in accordance with our rules in the event the operator has increased its basic service  Y- d(#rates by more than the increase in franchise fees properly allocable to the basic tier.c Y -ԍSee 47 C.F.R.  76.942, 76.945.c The  d(#burden of demonstrating that any such increases are proper shall remain on the operator as with  Y-any other rate adjustments.W Y' -ԍSee 47 C.F.R.  76.937.W  Y- 7.` ` Operators that have had cable programming service rates deemed unreasonable  d(#within the prior 12 months, or some other period specified by the Commission in a particular  d(#case, must submit increases in CPS rates attributable to an increase in franchise fees to the  YH- d(# Commission for its review .Hn  Yg-ԍSee 47 C.F.R.  76.960. Franchise fees will continue to be allocated in a manner  YR-that is most consistent with the assessment methodology used by franchising authorities.  See 47 C.F.R. 76.924(f). Under that rule, a portion of franchise fee increases may, in some circumstances, be allocated to cable programming service tiers. Rate justifications relating to franchise feerelated increases in CPS  d(#+ tier rates will be reviewed by the Commission according to existing rules for Commission review  Y -of basic service tier rates.Q  Y-ԍSee 47 C.F.R.  76.945.Q  Y - 8.` ` These rule revisions do not change our rules governing rate adjustments Dp   Y - d(#Y Dp attributable to decreases in external costs, including franchise fees. Decreases in franchise fees  d(#Kallocable to either the basic service or a CPS tier will continue to be treated as external cost  d(#decreases under our existing rules. Such decreases must be passed through to subscribers within  Y- d(#the periods set forth in our rules for passing through decreases in external costs.g Y -ԍSee 47 C.F.R.  76.922(d)(3)(i), (iii).g The operator  d(#must provide 30 days' notice to subscribers, the local franchising authority and the Commission,  Yb- d(#as appropriate.ubD YW$-ԍSee 47 C.F.R.  76.945(c), 76.958, 76.964(b).ppu As with franchise fee increases, operators must provide documentation for the  YK-amount of the decrease . SK Y&-ԍSee supra n. 13.S"K0*((*"Ԍ X-ԙ III. Regulatory Fees  X- A. Background  Y- 9.` ` Section 9 of the Communications Act of 1934, as amended, requires the  d(#Commission to collect cable system regulatory fees of $370 per 1,000 subscribers from cable  Yv- d(#ztelevision systems on an annual basis.v Y-ԍ47 U.S.C.  159. The statute also permits the Commission to adjust the amount of  Y-the regulatory fees in subsequent years. 47 U.S.C.  159(b).  The purpose of requiring cable systems to pay  d(#Yregulatory fees to the Commission is to permit the Commission to recover the annual cost of its  YH- d(#various regulatory activities.VHb Y[ -ԍ47 U.S.C.  159.V In a Report and Order released June 8, 1994, in MD Docket No.  d(#9419, the Commission adopted implementing rules providing for the payment of regulatory fees  Y - d(#in fiscal year 1994 and thereafter.W  Y-ԍImplementation of Section 9 of the Communications Act: Assessment and Collection  Y-of Regulatory Fees for the 1994 Fiscal Year, MD Docket No. 9419, Report and Order, 59  Y-Fed. Reg. 30984 (June 16, 1994) (Regulatory Fees Order).W In that Report and Order, we decided to assess the cable  Y - d(#Ksystem regulatory fee on an exact per subscriber basis (i.e., $0.37 per subscriber per year or  Y - d(#Japproximately $0.03 per subscriber per month).  Y=-ԍRegulatory Fees Order at paras. 99100, 59 Fed. Reg. at 3099530996. We provided that regulatory fees be paid on  d(#Nthis basis so that cable systems serving less than 1,000 subscribers would not pay a  Y - d(#disproportionately high regulatory fee.B M  Y-ԍId. B The first cable system regulatory fee payments for  Y -fiscal year 1994 were due on August 12, 1994.  Y^-ԍ Public Notice: Cable Television System Regulatory Fees (June 20, 1994). Fiscal year 1994 runs from October 1, 1993 through September 30, 1994. Systems owing regulatory fees greater than $18,500 were permitted to pay half the amount owed on August 12, 1994  Y-and the remainder no later than September 9, 1994. Id. at 3.  Y- m10.` ` Cable operators in MD Docket No. 9419 urged the Commission to permit cable  Yh- d(#Zsystems to pass regulatory fees through to subscribers as external costs.m hp Y"-ԍRegulatory Fees Order at n.41, 59 Fed. Reg. at 30996.m In that Report and  YS- d(#ZOrder, we concluded that the passthrough issue was not within the scope of the docket and  Y>-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-