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>7jC:,Xj\  P6G;XP ?y.X80,QwX\  P6G;P @2a=5,r&a\  P6G;&P A2e=5,d[&e4  pG;& B0_=5,%]&_*f9 xr G;&X CP:% ,J:\  P6G;JP D{,W80,%~UW*f9 xr G;X @|ND,C|\  P6G;P f&J/),QJ\  P6G;Py.\80, c\4  pG;20 S' X  S'X` hp x (#%'0*,.8135@8:LEC/cable operators. The language of sentence one [of Section 653(a)(1)] is  SH ' Gx=straightforward: "A local exchange carrier may provide cable service to its cable service  Gxsubscribers in its telephone area through an open video system that complies with this  Gxsection." The [Commission] recognized the unequivocal nature of this provision when  S ' Gxit stated, "[T]he first sentence of Section 653(a)(1) allows LECs, without qualification, to  S 'operate open video systems within their telephone service areas . . . .")Tfootnote reference)#footnote reference#+h po" S' |$D " footnote text` hp x (#` hp x (##2( footnote reference##&J\  P6Qr&P# Í)E)2( footnote reference)#C\  P6QQwP#City of Dallas, 165 F.3d at 353, citing Communications Act  653(a)(1), 47 U.S.C.  573(a)(1); Second Report and Order, 11 FCC Rcd at 18242 (citations omitted, emphasis original).    S\'  k14. ` ` The Commission codified the cable operator effective competition requirement at Section 76.1501 of its rules, which, in pertinent part, provides:  GxXlAny person may obtain a certification to operate an open video system pursuant to Section  Gxd653(a)(1) of the Communications Act, 47 U.S.C. 573(a)(1), except that an operator of a  S' Gx cable system, regardless of any other service that the cable operator may provide, may  GxJnot obtain such certification within its cable service area unless it is subject to "effective  Gxcompetition" as defined in Section 623(l)(1) of the Communications Act, 47 U.S.C.  S'543(l)(1).)footnote reference)#footnote reference#L,o S' footnote text` hp x (#` hp x (##&0 footnote reference##&J\  P6Qr&P# Í)91&0 footnote reference)#C\  P6QQwP#47 C.F.R.  76.1501 (emphasis added). L   |$&In accordance with the Fifth Circuit's decision, we hereby amend Section 76.1501 to provide that the  |$effective competition requirement does not apply to a LEC cable operator that seeks open video system  S~'certification within its cable service area.)[footnote reference)#footnote reference#G-~x o S#' footnote text` hp x (#` hp x (##&0 footnote reference##&J\  P6Qr&P# Í)91&0 footnote reference)#C\  P6QQwP#See Appendix A,  76.1501. G "V -,&&''"Ԍ S' ÙD.` ` Open Video System Operator Discretion  S'  k15. ` ` In the Second Report and Order, the Commission, while generally prohibiting competing,  |$Dinregion cable operators or their affiliates from becoming programmers on open video systems operating  |$in their franchise areas, granted open video system operators discretion to permit carriage of such cable  S8' |$operators' programming.)\footnote reference)#footnote reference#Q.8o SW' footnote text` hp x (#` hp x (##&8 footnote reference##&J\  P6Qr&P# Í)99&8 footnote reference)#C\  P6QQwP#Second Report and Order, 11 FCC Rcd at 18259. Q In granting open video system operators this discretion, the Commission  |$reasoned that ". . . at least in some instances, the open video system operator will find it in its interest to  |$allow the competing, inregion cable operator to obtain capacity on the open video system (e.g., where  |$lthe operator believes that the programming offered by the competing, inregion cable system or  S' |$programming affiliate is necessary to the success of the open video system operation).")[footnote reference)#footnote reference#:/0o SW ' footnote text` hp x (#` hp x (##&8 footnote reference##&J\  P6Qr&P# Í)99&8 footnote reference)#C\  P6QQwP#Id. at 1825960. : The Commission affirmed this conclusion on reconsideration stating:  Gx(Xl[A]n open video system operator may determine that the viability of its system is  Gx enhanced by carriage of video programming that is offered by the competing, inregion  Gxqcable operator. We believe that it is not appropriate for the Commission to deny an open  Gxvideo system operator the independent business discretion to decide that a cable operator's  Gxdpresence on its system may be beneficial. This business discretion may prove critical to  GxNthe success of the open video system, and we believe that because such success will foster  GxBcompetition in the video delivery marketplace, this exception will serve the public  S'interest.)Zfootnote reference)#footnote reference#S0o Sg' footnote text` hp x (#` hp x (##&@ footnote reference##&J\  P6Qr&P# Í)9A&@ footnote reference)#C\  P6QQwP#Third Report and Order, 11 FCC Rcd at 2025253. S  Accordingly, the Commission adopted Section 76.1503(c)(2)(v) of its rules which provides:  GxXlNotwithstanding the general prohibition on an open video system operator's discrimination  GxOamong video programming providers contained in paragraph (a) of this section, a  Gx competing, inregion cable operator or its affiliate(s) that offer cable service to subscribers  Gxlocated in the service area of an open video system shall not be entitled to obtain capacity on such open video system, except:   Gx0Xl(A) Where the operator of an open video system determines that granting access to the competing, inregion cable operator is in its interests; or   GxXl(B) Where a showing is made that facilitiesbased competition will not be significantly  S('impeded.)footnote reference)#footnote reference#1(po S'!' footnote text` hp x (#` hp x (##&H footnote reference##&J\  P6Qr&P# Í)9I&H footnote reference)#C\  P6QQwP#47 C.F.R.  76.1503(c)(2)(v).#&J\  P6Qr&P# #C\  P6QQwP#    S'  kz16. ` ` The Fifth Circuit invalidated the Commission's rule permitting an open video system  |$7operator discretion to permit carriage of a competing, inregion cable operator's programming. The Fifth  |$Circuit held that the rule violated the plain language of Section 653(b)(1)(A) of the Communications Act" 1,&&''"  |$which requires the Commission to "prohibit an operator of an open video system from discriminating  S' |$among video programming providers with regard to carriage on its open video system.")footnote reference)#footnote reference#2o S' footnote text` hp x (#` hp x (##&P footnote reference##&J\  P6Qr&P# Í)9Q&P footnote reference)#C\  P6QQwP#City of Dallas, 165 F.3d at 357, quoting Communications Act  653(b)(1)(A), 47 U.S.C.  573(b)(1)(A).  The Fifth Circuit determined that:  GxXlBecause this regulation is contrary to the plain language of [Section] 653(b)(1)(A) . . . we  Gxinvalidate these rules and remand for further consideration. On remand, the agency must  Gxforbid discrimination among video programming providers, as [Section] 653(b)(1)(A) requires.   S'` `  Ghh}***  GxXlIf the Commission is declaring cable operators ineligible to the extent [open video system]  Sp' Gxoperators want them to be ineligible, then it is permitting discrimination by [open video  Gx0system] operators among video programming providers. Section 653(b)(1)(A) requires  Gxthe agency not to do that. Alternatively, the Commission is impermissibly delegating to  Gxthe [open video system] operators its authority to determine "the extent" to which cable  S 'operator carriage promotes the public interest.)footnote reference)T3 0 S' footnote text` hp x (#` hp x (##&X footnote reference##&J\  P6Qr&P# Í)9Y&X footnote reference)#C\  P6QQwP#Id. (footnote omitted, emphasis original). T   S '  k17. ` ` We believe that the most efficient and expeditious method of discharging the Fifth  |$Circuit's remand is simply deleting subsection 76.1503(c)(2)(v)(A) of the Commission's rules which grants  |$discretion to open video system operators with regard to carriage of the programming of competing, in S ' |$region cable operators and their affiliates.P4  S' footnote text` hp x (#` hp x (##&X footnote reference##&J\  P6Qr&P# Í)9Y&X footnote reference)#C\  P6QQwP#See Appendix A,  76.1503(c)(2)(v). P In this way, competing, inregion cable operators and their  |$affiliates would continue to be permitted, in limited instances, to obtain capacity on open video systems  |$/that operate in their franchise area where such cable operator can demonstrate that facilitiesbased  |$competition will not be significantly impeded. In any event, the discretion whether to grant or deny  |$carriage would rest with the Commission to be exercised consistent with the statutory mandate prohibiting discrimination by an open video system operator among video programming providers.  S' G6!Xl IV.REGULATORY FLEXIBILITY ANALYSIS AND INITIAL PAPERWORK REDUCTION  S'ACT OF 1995 ANALYSIS (#  Sz'  k18. ` ` A supplemental final regulatory flexibility analysis is attached to this Order as Appendix  ST' |$B. This Order contains rule amendments that have been analyzed with respect to the Paperwork  |$tReduction Act of 1995 and found to impose no new or modified information collection requirement on the public. " p4,&&''"Ԍ S' V. #footnote reference# ORDERING CLAUSES  S'  k19. ` ` IT IS ORDERED that, pursuant to authority found in Sections 4(i), 303(r) and 653 of  |$the Communications Act of 1934, as amended, 47 U.S.C.  154(i), 303(r), and 573, the Commission's rules are hereby amended as set forth in Appendix A.   S'  kW20. ` ` IT IS FURTHER ORDERED that the rules as amended in Appendix A shall become effective upon approval by the Office of Management and Budget.  S'  k21. ` ` IT IS FURTHER ORDERED that the Commission's Office of Public Affairs, Reference  |$Operations Division, shall send a copy of this Order on Remand including the Supplemental Final  |$Regulatory Flexibility Analysis, to the Chief Counsel for Advocacy of Small Business Administration, in  |$accordance with paragraph 603(a) of this regulatory Flexibility Act. Pub. L. No. 96354, 94 Stat. 1164,  S '5 U.S.C.  601 et seq. (1981).  S ' ` `  Ghh} FEDERAL COMMUNICATIONS COMMISSION  ` `  Ghh}Magalie Roman Salas ` `  Ghh}Secretary " 4,&&''"  S'  Appendix A l Part 76 of Title 47 of the Code of Federal Regulations is amended as follows: PART 76 MULTICHANNEL VIDEO AND CABLE TELEVISION SERVICE  S'1.` ` The authority citation for Part 76 continues to read as follows:  |$AUTHORITY: 47 U.S.C. 151, 152, 153, 154, 301, 302, 303, 303a, 307, 308, 309, 312, 315, 317, 325,  |$503, 521, 522, 531, 532, 533, 534, 535, 536, 537, 543, 544, 544a, 545, 548, 549, 552, 554, 556, 558, 560, 561, 571, 572, 573.  S '1.` ` Section 76.1501 is amended as follows:  S '  76.1501 Qualifications to be an open video system operator.  G6!Any person may obtain a certification to operate an open video system pursuant to Section  |$653(a)(1) of the Communications Act, 47 U.S.C. 573(a)(1), except that an operator of a cable system may  |$not obtain such certification within its cable service area unless it is subject to "effective competition" as  |$defined in Section 623(l)(1) of the Communications Act, 47 U.S.C. 543(l)(1). The effective competition  |$requirement of the preceding sentence does not apply to a local exchange carrier that is also a cable  |$operator that seeks open video system certification within its cable service area. A cable operator that is  |$not subject to effective competition within its cable service area may file a petition with the Commission,  |$}seeking a finding that particular circumstances exist that make it consistent with the public interest,  |$@convenience, and necessity to allow the operator to convert its cable system to an open video system.  |$Nothing herein shall be construed to affect the terms of any franchising agreement or other contractual agreement.  SP'2.` ` Section 76.1502(a) is amended as follows:  S'  76.1502 Certification.  G6!(a) An operator of an open video system must certify to the Commission that it will comply with  |$Dthe Commission's regulations in 47 CFR 76.1503, 76.1504, 76.1506(m), 76.1508, 76.1509, and 76.1513.  |$The Commission must approve such certification prior to the commencement of service at such a point  |$Iin time that would allow the applicant sufficient time to comply with the Commission's notification requirements. " 4,&&''"Ԍ S' 3.` ` Section 76.1503(c)(2)(v) is amended as follows:  S'  76.1503 Carriage of video programming providers on open video systems.  S`'(c)` ` *****  S'(2)` ` *****  S'  k(v)` ` Notwithstanding the general prohibition on an open video system operator's discrimination  |$tamong video programming providers contained in paragraph (a) of this section, a competing, inregion  |$cable operator or its affiliate(s) that offer cable service to subscribers located in the service area of an open  |$*video system shall not be entitled to obtain capacity on such open video system, except where a showing is made that facilitiesbased competition will not be significantly impeded.)footnote reference)  " 4,&&''= "  S'   APPENDIX B l  S'<  REGULATORY FLEXIBILITY ANALYSIS l  S`' #footnote reference# Supplementary Final Regulatory Flexibility Act Analysis  S8'  S'  k1.` ` As required by the Regulatory Flexibility4 Act of 1980 ("RFA"),)T1footnote reference)#footnote reference#=o S/' footnote text` hp x (#` hp x (##&x footnote reference##&J\  P6Qr&P# Í)9y&x footnote reference)#C\  P6QQwP#5 U.S.C. 601612. = the Commission has  |$@prepared a Final Regulatory Flexibility Analysis ("FRFA") of the expected significant economic impact  S' |$on small entities by the open video system policies and rules.0 fG ' #|\  P6G;CP#Second Report and Order, 11 FCC Rcd. at 1834950; Third Report and Order, 11 FCC Rcd at #|\  P6G;CP#2032535. #&a\  P6G;r&P# The Fifth Circuit's decision in City of  S' |$^Dallas, Texas v. FCC reversed and remanded several of these rules.jo" S ' |$ " footnote text` hp x (#` hp x (##2 footnote reference##&J\  P6Qr&P# Í)E2 footnote reference)#C\  P6QQwP#City of Dallas, Texas v. FCC, 165 F.3d 341 (5th Cir. 1999) (Nos. 9660502, 9660581, 9660844) reh'g and  {O 'suggestion for reh'g en banc denied (May 28, 1999).  This FRFA addresses the impact on  |$small entities of the rules changes required by the Fifth Circuit's decision. The Commission's Office of  SH ' |$*Public Affairs, Reference Operations Division shall send a copy of this Order, including the FRFA, to the Chief Counsel for Advocacy of the Small Business Administration ("SBA") in accordance with the RFA.  S '  k2.` ` Need for Action and Objectives of the Proposed Rule. In 1996, the Commission adopted  |$its rules pursuant to Section 653 of the Communications Act implementing the open video system  |$provisions thereof. Those rules were affirmed in part, reversed in part, and remanded in part by the United  S\' |$States Court of Appeals for the Fifth Circuit in City of Dallas v. FCC.)2footnote reference)#footnote reference#,\Go S2' footnote text` hp x (#` hp x (##& footnote reference##&J\  P6Qr&P# Í)9& footnote reference)#C\  P6QQwP#Id., In this Order, we amend our rules in accordance with the reversed and remanded portions of the Fifth Circuit's decision.  S'  k3.` ` Legal Basis. The authority for the action proposed for this rulemaking is contained in  S'Sections 4(i), 303(r), and 653 of the Communications Act.)h>footnote reference)#footnote reference#Go Sn' footnote text` hp x (#` hp x (##& footnote reference##&J\  P6Qr&P# Í)9& footnote reference)#C\  P6QQwP#47 U.S.C 4(i), 303(r), 573. G  Sp'  k 4.` ` Summary of Significant Issues Raised by Public Comments. Because the rules changes  SJ' |$@adopted in this Order are required by the Fifth Circuit's decision, no comments were solicited or filed.  |$We have, however, considered the economic impact on small entities of the rule changes adopted herein  S'and conclude that the Order will not negatively impact small entities.  S'  k5.` ` Description and Estimate of the Number of Small Entities Impacted. The RFA directs the  |$Commission to provide a description of and, where feasible, an estimate of the number of small entities  |$that will be affected by the proposed rules. The RFA defines the term "small entity" as having the same  |$meaning as the terms "small business," "small organization," and "small business concern" under Section  S' |$3 of the Small Business Act.)rBfootnote reference)#footnote reference#hXo" S^$' |$ " footnote text` hp x (#` hp x (##2 footnote reference##&J\  P6Qr&P# Í)E2 footnote reference)#C\  P6QQwP#5 U.S.C. 601(3) (1980) (incorporating by reference the definition of "small business concern" in 15 U.S.C.  |$ 632). Pursuant to 5 U.S.C. 601(3), the statutory definition of small business applies "unless an agency after  |$ consultation with the Office of Advocacy of the Small Business Administration and after an opportunity for public"%,&&%"  |$ comment, establishes one or more definitions of such term which are appropriate to the activities of the agency and publishes definitions in the Federal Register.  Under the Small Business Act, a small business concern is one which: (1)",&&''u"  |$Mis independently owned and operated; (2) is not dominant in its field of operation; and (3)satisfies any  S'additional criteria established by the SBA.)sIfootnote reference)#footnote reference#Ko SO' footnote text` hp x (#` hp x (##& footnote reference##&J\  P6Qr&P# Í)9& footnote reference)#C\  P6QQwP#Small Business Act, 15 U.S.C.  632. K  S'  k# 6.` ` Small MVPDs: The SBA has developed a definition of small entities for cable and other  |$pay television services, which includes all such companies generating $11 million or less in annual  S:' |$/receipts.)Ofootnote reference)#footnote reference#F:o SQ ' footnote text` hp x (#` hp x (##& footnote reference##&J\  P6Qr&P# Í)9& footnote reference)#C\  P6QQwP#13 C.F.R. 121.201 (SIC 4841). F This definition includes cable system operators, closed circuit television services, direct  |$broadcast satellite services, multipoint distribution systems, satellite master antenna systems and  |$Dsubscription television services. According to the Bureau of the Census, there were 1,758 total cable and  S' |$&other pay television services and 1,423 had less than $11 million in revenue.)Sfootnote reference)#footnote reference# h(o" Sy' |$ " footnote text` hp x (#` hp x (##2 footnote reference##&J\  P6Qr&P# Í)E2 footnote reference)#C\  P6QQwP#U.S. Department of Commerce, Bureau of the Census, Industry and Enterprise Receipts Size Report, Table 2D, SIC 4841 (Bureau of the Census data under contract to the Office of Advocacy of the SBA).  We address below each service individually to provide a more precise estimate of small entities.  SJ '  k7.` ` Cable Systems: The Commission has developed, with SBA's approval, our own definition  |$3of a small cable system operator for the purposes of rate regulation. Under the Commission's rules, a  S ' |$"small cable company" is one serving fewer than 400,000 subscribers nationwide.))Xfootnote reference)#footnote reference#@  o" S' |$ " footnote text` hp x (#` hp x (##2 footnote reference##&J\  P6Qr&P# Í)E2 footnote reference)#C\  P6QQwP#47 C.F.R.  76.901(e). The Commission developed this definition based on its determinations that a small  {O' |$ cable system operator is one with annual revenues of $100 million or less. Implementation of Sections of the 1992  {O' |$ Cable Act: Rate Regulation, Sixth Report and Order and Eleventh Order on Reconsideration, 10 FCC Rcd 7393  yO'(1995).#&J\  P6Qr&P#  SO' #C\  P6QQwP#@ Based on our most  |$recent information, we estimate that there were 1439 cable operators that qualified as small cable  S ' |$3companies at the end of 1995.)v]footnote reference)#footnote reference#  o S' footnote text` hp x (#` hp x (##& footnote reference##&J\  P6Qr&P# Í)9& footnote reference)#C\  P6QQwP#Paul Kagan Associates, Inc., Cable TV Investor, Feb. 29, 1996 (based on figures for Dec. 30, 1995).  Since then, some of those companies may have grown to serve over  |$^400,000 subscribers, and others may have been involved in transactions that caused them to be combined  |$with other cable operators. Consequently, we estimate that there are fewer than 1439 small entity cable  |$system operators that may be affected by the decisions and rules we are adopting. We believe that only  |$^a small percentage of these entities currently provide qualifying "telecommunications services" as required  |$by the Communications Act and, therefore, estimate that the number of such entities are significantly fewer than noted.  Sl'  kS8.` ` The Communications Act also contains a definition of a small cable system operator,  |$which is "a cable operator that, directly or through an affiliate, serves in the aggregate fewer than 1% of  |$all subscribers in the United States and is not affiliated with any entity or entities whose gross annual"< ,&&''"  S' |$<revenues in the aggregate exceed $250,000,000.")bfootnote reference)#footnote reference#= o S' footnote text` hp x (#` hp x (##& footnote reference##&J\  P6Qr&P# Í)9& footnote reference)#C\  P6QQwP#47 U.S.C. 543(m)(2). = The Commission has determined that there are  |$g61,700,000 subscribers in the United States. Therefore, we found that an operator serving fewer than  |$617,000 subscribers shall be deemed a small operator, if its annual revenues, when combined with the total  S' |$annual revenues of all of its affiliates, do not exceed $250 million in the aggregate.)jfootnote reference)#footnote reference#I 0o SG' footnote text` hp x (#` hp x (##& footnote reference##&J\  P6Qr&P# Í)9& footnote reference)#C\  P6QQwP#47 C.F.R.  76.1403(b) (SIC 4833). I Based on available  S`' |$<data, we find that the number of cable operators serving 617,000 subscribers or less totals 1450.)ofootnote reference)#footnote reference#`o S' footnote text` hp x (#` hp x (##& footnote reference##&J\  P6Qr&P# Í)9& footnote reference)#C\  P6QQwP#Paul Kagan Associates, Inc., Cable TV Investor, Feb. 29, 1996 (based on figures for Dec. 30, 1995).   |$Although it seems certain that some of these cable system operators are affiliated with entities whose gross  |$tannual revenues exceed $250,000,000, we are unable at this time to estimate with greater precision the  |$number of cable system operators that would qualify as small cable operators under the definition in the Communications Act.  Sp'  k49.` ` Open Video System ("OVS"): The Commission has issued 25 certifications to operate OVS  |$Dsystems. Of these 25 certifications, only one OVS operator, RCN, is providing service in various service  |$areas across the United States. Little financial information is available for the other entities authorized  |$ to provide OVS that are not yet operational. We believe that one OVS licensee may qualify as a small  |$Qbusiness concern. Given that other entities have been authorized to provide OVS service but have not yet begun to generate revenues, we conclude that at least some of the OVS operators qualify as small entities.  SZ'  k10.` ` Program Producers and Distributors: The Commission has not developed a definition  S4' |$*of small entities applicable to producers or distributors of television programs.)mrfootnote reference)#footnote reference#x4po" S3' |$ " footnote text` hp x (#` hp x (##2 footnote reference##&J\  P6Qr&P# Í)E2 footnote reference)#C\  P6QQwP#The term "television programs" is used in this context to include all video programming outlets, e.g., cable,  S 'DBS.#&J\  P6Qr&P# #C\  P6QQwP#  Therefore, we will utilize  S ' |$the SBA classifications of Motion Picture and Video Tape Production (SIC 7812),)zfootnote reference)#footnote reference# o" S' |$ " footnote text` hp x (#` hp x (##2 footnote reference##&J\  P6Qr&P# Í)E2 footnote reference)"#C\  P6QQwP#Establishments primarily engaged in the production of theatrical and nontheatrical motion pictures and video  |$@ tapes for exhibition or sale, including educational, industrial, and religious films. Included in the industry are  |$k establishments engaged in both production and distribution. Producers of live radio and television programs are  |$ classified in Industry 7922." Standard Industrial Classification Manual, SIC 7812, Executive Office of the President,  S'Office of Management and Budget (1987) (OMB SIC Manual).#&J\  P6Qr&P# #C\  P6QQwP#  Motion Picture and  S' |$Video Tape Distribution (SIC 7822),)footnote reference)#footnote reference#*0 o" S+' |$ " footnote text` hp x (#` hp x (##2 footnote reference##&J\  P6Qr&P# Í)E2 footnote reference)#C\  P6QQwP#"Establishments primarily engaged in the distribution (rental or sale) of theatrical and nontheatrical motion  |$Q picture films or in the distribution of video tapes and disks, except to the general public." OMB SIC Manual, SIC 7822. * and Theatrical Producers (Except Motion Pictures) and  S' |$Miscellaneous Theatrical Services (SIC 7922).)footnote reference)#footnote reference#/0o" S3#' |$ " footnote text` hp x (#` hp x (##2 footnote reference##&J\  P6Qr&P# Í)E2 footnote reference)"#C\  P6QQwP#Establishments primarily engaged in providing live theatrical presentations, such as road companies and  |$& summer theaters. . . . Also included in this industry are producers of . . . live television programs." OMB SIC Manual, SIC 7922. / These SBA definitions provide that a small entity in the",&&''^"  |$3television programming industry is an entity with $21.5 million or less in annual receipts for SIC 7812  S' |$and 7822, and $5 million or less in annual receipts for SIC 7922.)͈footnote reference)#footnote reference#;o S' footnote text` hp x (#` hp x (##& footnote reference##&J\  P6Qr&P# Í)9& footnote reference)#C\  P6QQwP#13 C.F.R.  121.201. ; The 1992 Bureau of the Census data  |$*indicate the following: (1) there were 7265 U.S. firms classified as Motion Picture and Video Production  |$7(SIC 7812), and that 6987 of these firms had $16,999 million or less in annual receipts and 7002 of these  S`' |$Dfirms had $24,999 million or less in annual receipts;)footnote reference)#footnote reference#`0o" S' |$ " footnote text` hp x (#` hp x (##2 footnote reference##&J\  P6Qr&P# Í)E2 footnote reference)#C\  P6QQwP#U.S. Small Business Administration 1992 Economic Census Industry and Enterprise Report, Table 2D, SIC  |$7 7812, (Bureau of the Census data adapted by the Office of Advocacy of the U.S. Small Business Administration)  |$& (SBA 1992 Census Report). The Census data do not include a category for $21.5 million. Therefore, we have  |$  reported the closest increment below and above the $21.5 million threshold. There is a difference of 15 firms  |$ between the $16,999 and $24,999 million annual receipt categories. It is possible that these 15 firms could have annual receipts of $21.5 million or less and, therefore, would be classified as small businesses.  (2) there were 1139 U.S. firms classified as Motion  |$ Picture and Tape Distribution (SIC 7822), and that 1007 of these firms had $16,999 million or less in  S' |$annual receipts and 1013 of these firms had $24,999 million or less in annual receipts;)footnote reference)#footnote reference# o" SW' |$ " footnote text` hp x (#` hp x (##2 footnote reference##&J\  P6Qr&P# Í)E2 footnote reference)#C\  P6QQwP#SBA 1992 Census Report, SIC 7812. The Census data does not include a category for $21.5 million; therefore,  |$ we have reported the closest increment below and above the $21.5 million benchmark. There is a difference of 6  |$ firms between the $16,999 and $24,999 million annual receipt categories. It is possible that these 6 firms could have annual receipts of $21.5 million or less and, therefore, would be classified as small businesses.  and (3) there were  |$Q5671 U.S. firms classified as Theatrical Producers and Services (SIC 7922), and that 5627 of these firms  S'had less than $5 million in annual receipts.)footnote reference)#footnote reference#E o S' footnote text` hp x (#` hp x (##& footnote reference##&J\  P6Qr&P# Í)9& footnote reference)#C\  P6QQwP#SBA 1992 Census Report, SIC 7922. E  Sp'  k11.` ` Each of these SIC categories is very broad and includes firms that may be engaged in  |$various industries including television. Specific figures are not available as to how many of these firms  |$exclusively produce and/or distribute programming for television or how many are independently owned  |$and operated. Consequently, we conclude that there are approximately 6987 small entities that produce  |$and distribute taped television programs, 1013 small entities primarily engaged in the distribution of taped  |$@television programs, and 5627 small producers of live television programs that may be affected by the  S 'rules adopted in this Order.  S2'  k12. ` ` Reporting, Recordkeeping, and other Compliance Requirements: The rules adopted in this  S 'Order will not require a change in record keeping requirements.  S'  kF13. ` ` Significant Alternatives Which Minimize the Impact on Small Entities and which are  S' |$7Consistent with Stated Objectives: The Order adopts rule changes required by the Fifth Circuit's decision  Sr'in City of Dallas, Texas v. FCC.  S$'  k14. ` ` Federal Rules which Overlap, Duplicate, or Conflict with the Commission's Proposal: None.  S'#&a\  P6G;r&P#