The Township may regulate the rates for the provision of cable
service, or any other communications service provided over a cable
system only to the extent provided for by federal and state law, which
provides, among other things, for the regulation of rates for basic
cable service under circumstances in which a cable system is not subject
to effective competition.
A.
Basic and cable programming service tier rates. Basic service tier and cable programming service rates shall be subject to regulation by the FCC and by state and local authorities, as is appropriate, in order to assure that they are in compliance with the requirements of 47 USC 543. Rates that are demonstrated, in accordance with these rules, not to exceed the initial permitted per-channel charge or the subsequent permitted per-channel charge or the equipment charges as specified in § 32-23, will be accepted as in compliance. The maximum monthly charge per subscriber for a tier of regulated programming services offered by a cable system shall consist of a permitted per-channel charge multiplied by the number of channels on the tier, plus a charge for franchise fees. The maximum monthly charges for regulated programming services shall not include any charges for equipment or installations. Charges for equipment and installations are to be calculated separately pursuant to § 32-23.
B.
Initial permitted per-channel charge.
(1)
The permitted per-channel charge on the initial date of regulation
shall be, at the election of the cable operator, either:
(a)
A charge determined pursuant to a cost-of-service proceeding;
or
(b)
The charge specified in Subsection B(1)(b)[1] of this section as applicable:
[1]
If the operator's per-channel charge for regulated programming
services and equipment in effect on the date of initial regulation
is equal to or below the benchmark per-channel charge, as adjusted
forward for inflation from September 30, 1992, to the date of initial
regulation, the permitted per-channel charge shall be the per-channel
charge in effect on the date of initial regulation, adjusted for equipment.
[2]
If: the operator's per-channel charge for regulated programming
services and equipment in effect on the date of initial regulation
is above the benchmark per-channel charge, as adjusted forward for
inflation from September 30, 1992, until the initial date of regulation;
and the operator's per-channel charge for regulated programming
services and equipment in effect on September 30, 1992, was above
the benchmark per-channel charge; the permitted per-channel charge
is nine-tenths of the per-channel charge in effect on September 30,
1992, but no lower than the benchmark per-channel charge, additionally
adjusted for inflation from September 30, 1992, to the initial date
of regulation, for equipment, and for any charges in the number of
channels offered on all regulated tiers.
[3]
If: the operator's per-channel charge for regulated programming
services and equipment in effect on the date of initial regulation
is above the benchmark per-channel charge, as adjusted forward for
inflation from September 30, 1992, until the initial date of regulation;
and the operator's per-channel charge for regulated programming
services and equipment in effect on September 30, 1992, was below
the benchmark per-channel charge, the permitted per-channel charge
is the benchmark rate-per-channel adjusted for inflation from September
30, 1992, to the initial date of regulation, for equipment, and for
any charges in the number of channels offered on all regulated tiers.
(2)
For purposes of this section, the initial date of regulation for
the basic service tier shall be the date on which local notice is
given pursuant to Section 76.910 of the Act, that the provision of
the basic service tier is subject to regulation. For a cable programming
services tier, the initial date of regulation shall be the first date
on which a complaint on the appropriate form is filed with the FCC
concerning rates charged for the cable programming services tier.
(3)
For purposes of this section, rates in effect on the initial date
of regulation or on September 30, 1992, shall be the rates charged
to subscribers for service received on that date.
C.
Subsequent permitted per-channel charge. After the initial date of
regulation, the permitted channel charge for regulated programming
services shall be, at the election of the cable operator, either:
D.
Price cap requirements.
(1)
Inflation adjustments. Permitted per-channel charges for regulated
programming services may be adjusted periodically on account of inflation.
Adjustments to permitted per-channel charges on account of inflation
shall be based on changes in the Gross National Product Price Index
published by the Bureau of Economic Analysis of the United States
Department of Commerce.
(2)
External costs. Permitted per-channel charges for regulated programming
services may also be adjusted for changes in external costs measured
on a per-channel per-subscriber basis. To the extent external cost
increases are greater or less than the GNP-PI for the relevant period,
the per-channel charge will be adjusted accordingly. Per-channel charges
may not be increased if external costs increase at a rate less than
inflation. Permitted per-channel charges also shall be decreased on
account of external costs to the extent such costs decrease from previous
levels.
(a)
Categories. External costs shall consist of costs in the following
categories:
[1]
State and local taxes applicable to provision of cable television
service;
[2]
Franchise fees;
[3]
Costs of complying with franchise requirements, including costs
of providing public, educational and governmental access channels
as required by the franchise authority;
[4]
Retransmission consent fees; and
[5]
Programming costs.
(b)
The permitted per-channel charge for a tier of regulated programming
services shall be adjusted on account of programming costs and retransmission
consent fees only for programming or broadcast signals offered on
that tier.
(c)
The permitted per-channel charge shall not be adjusted for costs
of retransmission consent fees or charges in those fees incurred prior
to October 6, 1994.
(d)
The starting date for adjustments on account of external costs
for a tier of regulated programming service shall be the initial date
of regulation of the tier or 180 days from the effective date of these
rules, if the initial date of regulation occurs on or after 180 days
from the effective date of these rules.
(e)
Changes in franchise fees shall not result in an adjustment
to permitted per-channel charges, but rather shall be calculated separately
as part of the maximum monthly charge per subscriber for a tier of
regulated programming services.
(f)
Adjustments to permitted per-channel charges on account of increases
in costs of programming obtained from affiliated programmers, as defined
by the FCC, shall be the lesser of actual increases or the previous
permitted rate level increased by the amount of inflation.
(g)
Adjustments to permitted per-channel charges on account of increases
in costs of programming shall be further adjusted to reflect any revenues
received by the operator from the programmer.
A.
Scope.
(1)
The equipment regulated under this section consists of all equipment
in a subscriber's home that is used to receive the basic service
tier, regardless of whether such equipment is additionally used to
receive other tiers of regulated programming service and/or unregulated
service. Such equipment shall include but is not limited to:
(2)
Subscriber charges for such equipment shall not exceed charges based
on actual costs in accordance with the requirements set forth in this
section.
B.
Unbundling. A cable operator shall establish rates for remote control
units, converter boxes, other customer equipment, installation, and
additional connections separate from rates for basic tier service.
In addition, the rates for such equipment and installations shall
be unbundled one from the other.
C.
Equipment basket. A cable operator shall establish an equipment basket, which will include all costs associated with providing customer equipment and installation under this section. Equipment basket costs shall be limited to the direct and indirect material and labor costs of providing, leasing, installing, repairing and servicing customer equipment, as determined in accordance with the cost accounting and cost allocation requirements of § 32-24. The equipment basket shall not include general administrative overhead, including general marketing expenses. The equipment basket shall include a reasonable profit.
D.
Hourly service charge.
(1)
A cable operator shall establish charges for equipment and installation
using the hourly service charge (HSC) methodology. The HSC shall equal
the operator's annual equipment basket costs, excluding the purchase
cost of customer equipment, divided by the total person hours involved
in installing, repairing, and servicing customer equipment during
the same period. The HSC is calculated according to the following
formula:
|
HSC =
|
EB - CE
H
|
|
Where:
| ||||
|
EB
|
=
|
Annual equipment basket cost;
| ||
|
CE
|
=
|
Annual purchase cost of all customer equipment; and
| ||
|
H
|
=
|
Person hours involved in installing and repairing equipment
per year.
| ||
(2)
The purchase cost of customer equipment shall include the cable operator's
invoice price plus all other costs incurred with respect to the equipment
until the time it is provided to the customer.
F.
Remote charges.
(1)
Monthly charges for rental of a remote control unit shall consist
of the average annual unit purchase cost of the type of remote leased,
including acquisition price and incidental costs such as sales tax,
financing and storage up to the time it is provided to the customer,
added to the product of the HSC times the average number of hours
annually repairing or servicing a remote, divided by 12 to determine
the monthly lease rate for a remote according to the following formula:
|
Monthly Charge =
|
UCE + (HSC x HR)
12
|
|
Where:
| ||||
|---|---|---|---|---|
|
HR
|
=
|
Average hours repair per year; and
| ||
|
UCE
|
=
|
Average annual unit cost of remote.
| ||
(2)
Separate charges shall be established for each significantly different
type of remote control unit.
G.
Other equipment charges. The monthly charges for rental of converter
boxes and other customer equipment shall be calculated in the same
manner as for remote control units. Separate charges shall be established
for each significantly different type of converter box and each significantly
different type of other customer equipment.
H.
Additional connection charges. The costs of installation and monthly use of additional connections shall be recovered as charges associated with the installation and equipment cost categories, and at rate levels determined by the actual cost methodology presented in Subsections E, F and G of this section. An operator may recover additional programming costs and the costs of signal boosters on the customer's premises, if any, associated with the additional connection as a separate monthly unbundled charge for additional connections.
I.
Charges for equipment sold. A cable operator may sell customer premises
equipment to a subscriber. The equipment price shall recover the operator's
cost of the equipment, including costs associated with storing and
preparing the equipment for sale up to the time it is sold to the
customer, plus a reasonable profit. An operator may sell service contracts
for the maintenance and repair of equipment sold to subscribers. The
charge for a service contract shall be the HSC times the estimated
average number of hours for maintenance and repair over the life of
the equipment.
J.
Promotions. A cable operator may offer equipment or installation at charges below those determined under Subsections E through G of this section, as long as those offerings are reasonable in scope in relation to the operator's overall offerings in the equipment basket and not unreasonably discriminatory. Operators may not recover the cost of a promotional offering by increasing charges for other equipment basket elements, or by increasing programming service rates above the maximum monthly charge per subscriber prescribed by the FCC. As part of a general cost-of-service showing, an operator may include the cost of promotions in its general system overhead costs.
K.
Franchise fees. Equipment charges may include a properly allocated
portion of franchise fees.
A.
Applicability. The requirements of this section are applicable to
cable operators for which the basic service tier is regulated by the
franchise authority or the FCC, or, with respect to a cable programming
services tier, for which a complaint has been filed with the FCC.
The requirements of this section are applicable for purposes of rate
adjustments on account of external costs and for cost-of-service showings.
B.
Generally accepted accounting principles. Cable operators shall maintain
their accounts in accordance with generally accepted accounting principles,
except as otherwise directed by the FCC.
C.
Accounts required. Cable operators shall maintain accounts in a manner
that will enable identification of appropriate costs and application
of the FCC's cost assignment and allocation procedures, to cost
categories necessary for rate adjustments due to changes in external
costs and for cost-of-service showings. Such categories shall be sufficiently
detailed and supported to permit verification and audit against the
company's accounting records.
D.
Accounting level. Except to the extent otherwise indicated in this
section, cable operators shall aggregate expenses and revenues at
either the franchise, system, regional or company level in a manner
consistent with practices of the operator as of April 3, 1992. However,
in all events, cable operators shall identify at the franchise level
their costs of franchise requirements, franchise fees, local taxes,
and local programming.
E.
Cost allocation requirements.
(1)
For purposes of establishing expenses at the franchise level, cable
operators shall allocate expenses and revenues aggregated at higher
levels to the franchise level based on the ratio of the total number
of subscribers served at the franchise level to the total number of
subscribers served at the higher level.
(2)
Except to the extent otherwise indicated in this section, all categories
of costs allocated to or identified at the franchise level shall be
allocated to the basic service tier based on the ratio of channels
in the basic tier to the total number of channels offered in the franchise
area, including nonregulated and leased commercial access channels.
These costs shall be allocated to each tier of cable programming services
based on the ratio of channels in that tier to the total number of
channels offered in the franchise area.
(3)
Costs of programming and retransmission consent fees, however, shall
be allocated only to the tier on which the programming or broadcast
signal at issue is offered.
(4)
Costs of franchise fees shall be allocated among equipment and installations
program service tiers and subscribers in a manner that is most consistent
with the methodology of assessment of franchise fees by local authorities.
(5)
Costs of public, educational and governmental access channels carried
on the basic tier shall be directly assigned to the basic tier where
possible.
F.
Common costs. Expenses that cannot be assigned to any single expense
or service category shall be described as common costs. Common costs
shall be allocated to expense categories as follows:
(1)
Wherever possible, common costs are to be allocated to service cost
categories based on direct analysis of the origin of the costs themselves.
(2)
When direct analysis is impossible, common costs shall, if possible,
be allocated to service cost categories based on an indirect, cost-causative
linkage to other costs directly assigned or allocated to the service
cost category.
(3)
When neither direct nor indirect measures of cost allocation can
be found, common costs shall be allocated to each service cost category
based on the ratio of all costs directly assigned and attributed to
a service cost category over total costs directly assignable and attributable.
G.
Unrelated expenses and revenues. Cable operators shall exclude from cost categories used to develop rates for the provision of regulated cable service, equipment and leased commercial access any direct or indirect expenses and revenues not related to the provision of such services. Common costs of providing regulated cable service, equipment and leased commercial access and unrelated activities shall be allocated between them in accordance with Subsection F of this section.
H.
Part-time channels. In situations where a single channel is divided
on a part-time basis and is used to deliver service associated with
different tiers or with pay-per-channel or pay-per-view service, a
reasonable and documented allocation of that channel between services
shall be required along with the associated revenues and costs.
A.
The cost of satisfying franchise requirements to support public,
educational and governmental channels shall consist of the sum of:
B.
The costs of satisfying any other requirement under the franchise
shall consist of the direct and indirect costs, including a reasonable
allocation of general and administrative overhead.
A.
A cable operator shall file tentative copies of its schedule of rates
for the basic service tier and associated equipment with a franchise
authority within 30 days of receiving written notification from the
franchise authority that the franchise authority has been certified
by the FCC to regulate rates for the basic service tier.
B.
The cable operator shall include as part of its initial filing or
as part of a proposed increase such information as is necessary or
useful to show that its schedule of rates of its proposed increase
in rates complies with the act and the FCC rules. For purposes of
this Part 1, the filing of the cable operator shall be deemed to have
been made when at least 10 copies have been received by the clerk
of the franchise authority. The Township Board of Trustees may, by
resolution or otherwise, adopt rules and regulations consistent with
the Act and FCC rules prescribing the information, data and calculations
that must be included as part of the cable operator's filing
the schedule of rates or a proposed increase in rates.
C.
The clerk of the franchise authority may request and the cable operator
shall provide additional information that is related to and helpful
for the Township Board of Trustees' review and regulation of existing
rates for the basic service tier and associated equipment or a proposed
increase in these rates. The clerk may set reasonable dates upon which
the additional information must be submitted to the franchise authority.
A cable operator shall provide written notification to subscribers
of the availability of basic tier service by September 19, 1993, or
three billing cycles from September 1, 1993, and to new subscribers
at the time of installation. This notification shall include the following
information:
A cable operator shall provide written notice to a subscriber
of any increase in the price to be charged for the basic service tier
or associated equipment at least 30 days before any proposed increase
is effective. The notice should include the name and address of the
franchise authority.
A.
After a cable operator has submitted for review its existing rates for the basic service tier and associated equipment costs, or a proposed increase in these rates (including increases in the baseline channel change that results from reductions in the number of channels in a tier), the existing rates will remain in effect or the proposed rates will become effective after 30 days from the date of submission; however, the franchise authority may toll this thirty-day deadline for an additional time by issuing a brief written order as described in Subsection C of this section within 30 days of the rate submission explaining that it needs additional time to review the rates.
B.
If the franchise authority is unable to determine, based upon the material submitted by the cable operator, that the existing or proposed rates are within the FCC's permitted basic service tier charge or actual cost of equipment as defined in §§ 32-22 and 32-23, or if a cable operator has submitted a cost-of-service showing pursuant to §§ 32-33 and 32-24, seeking to justify a rate above the FCC's basic service tier charge as defined in §§ 32-22 and 32-23, the franchise authority may toll the thirty-day deadline in Subsection A of this section to request and/or consider additional information or to consider the comments from interested parties as follows:
C.
If a franchise authority has availed itself of the additional 90 or 150 days permitted in Subsection B of this section, and has taken no action within these additional time periods, then the proposed rates will go into effect at the end of the ninety-day or one-hundred-fifty day periods, or existing rates will remain in effect at such times, subject to refunds if the franchise authority subsequently issues a written decision disapproving any portion of such rates; however, in order to order refunds, a franchise authority must have issued a brief written order to the cable operator by the end of the ninety-day or one-hundred-fifty-day period permitted in Subsection B of this section directing the operator to keep an accurate account of all amounts received by reason of the rate in issue and on whose behalf such amounts were paid.
D.
If a written order has been issued pursuant to this section and 47 CFR 76.933 to toll the effective date of existing rates for the basic service tier and associated equipment or a proposed increase in these rates, the cable operator shall submit to the franchise authority any additional information required or requested pursuant to § 32-26. In addition, the Board shall hold a public hearing to consider the comments of interested parties within the additional ninety-day or one-hundred-fifty-day period, as the case may be. The clerk of the franchise authority shall publish a public notice of the public hearing in a newspaper having general circulation within the jurisdiction of the franchise authority, which shall state:
(1)
The date, time and place at which the hearing shall be held;
(2)
That interested parties may appear in person, by agent, or by letter
at such hearing to submit comments on or objections to the existing
rates or the proposed increase in rates; and
(3)
That copies of the schedule of rates or the proposed increase in rates and related information (except those parts that may be withheld as proprietary pursuant to § 32-34) are available for inspection or copying from the office of the Township Clerk. The public notice shall be published not less than 15 days before the hearing. In addition, the Township Clerk shall mail by first-class mail a copy of the public notice to the cable operator not less than 15 days before the hearing.
A franchise authority that has been certified, pursuant to the Act, to regulate rates for basic service and associated equipment may permit a small system to certify that the small system's rates for basic service and associated equipment comply with § 32-22, the FCC's substantive rate regulations.
A.
In order to regulate basic tier rates or associated equipment costs, a franchise authority must have procedural laws or regulations applicable to rate regulation proceedings that provide a reasonable opportunity for consideration of the views of interested parties. Such rules must take into account the thirty-day, one-hundred-twenty-day or one-hundred-eighty-day time periods that franchising authorities have to review rates under § 32-29.
B.
Unless otherwise provided by the Act or FCC rules, upon the filing of 10 copies of the schedule of rates or the proposed increase in rates pursuant to § 32-26, the clerk of the franchise authority shall publish a notice in a newspaper having general circulation in the jurisdiction of the franchise authority which shall state that:
(1)
The filing has been received by the clerk of the franchise authority and (except those parts that may be withheld as proprietary pursuant to § 32-34) is available for public inspection and copying; and
(2)
Interested parties are encouraged to submit written comments on the
filing to the clerk of the franchise authority not later than seven
days after the notice is published.
C.
The clerk of the franchise authority shall give notice to the cable
operator of the date, time and place of the meeting at which the Township
Board of Trustees shall first consider the schedule of rates or the
proposed increase. This notice shall be mailed by first-class mail
at least five days before the meeting. In addition, if a written staff
or consultant's report on the schedule of rates or the proposed
increase is prepared for consideration of the Township Board of Trustees,
the clerk of the franchise authority shall mail a copy of the report
by first-class mail to the cable operator at least five days before
the meeting at which the Township Board of Trustees shall first consider
the schedule of rates or the proposed increase.
A.
A franchise authority must issue a written decision in a ratemaking
proceeding whenever it disapproves an initial rate for the basic service
tier or associated equipment in whole or in part, disapproves a request
for a rate increase in whole or in part, or approves a request for
an increase in whole or in part over the objections of interested
parties. A franchise authority is not required to issue a written
decision that approves an unopposed existing or proposed rate for
the basic service tier or associated equipment.
A.
A franchise authority may require the production of proprietary information
to make a rate determination.
B.
Request for confidentiality.
(1)
Unless otherwise prohibited by the Act or FCC rules, the cable operator
shall provide to the franchise authority required or requested proprietary
information pursuant to this Part 1. The cable operator may request
that specific, identified portions of its response be treated as confidential
and withheld from public disclosure. The request must state the reason
why the information should be treated as proprietary and the facts
that support those reasons. The request for confidentiality will be
granted if the franchise authority determines that the preponderance
of the evidence shows that nondisclosure is consistent with the provision
of the Freedom of Information Act, 5 USC 552. The franchise authority
shall place in a public file for inspection any decision that results
in information being withheld. If the cable operator requests confidentiality
and the request is denied:
(2)
Release of the information will be stayed pending review.
C.
Any interested party may file a request to inspect material withheld
as proprietary with the franchise authority. The franchise authority
shall weigh the policy considerations favoring nondisclosure against
the reasons cited for permitting inspection in light of the facts
of the particular case. It will then promptly notify the requesting
entity and the cable operator that submitted the information as to
the disposition of the request. The requesting party or the cable
operator may seek review of the decision by filing an appeal with
any appropriate forum. Disclosure will be stayed pending resolution
of the appeal.
D.
The procedures set forth in this section shall be construed as analogous
to and consistent with the rules of the FCC regarding requests for
confidentiality, including, without limitation, 47 CFR 0.459.
A franchise authority may prescribe a reasonable rate for the
basic service tier or associated equipment after it determines that
a proposed rate is unreasonable.
A.
A franchise authority may order a cable operator to refund to subscribers
that portion of previously paid rates determined to be in excess of
the permitted tier charge or above the actual cost of equipment unless
the operator has submitted a cost-of-service showing that justifies
the rate charged as reasonable. Before ordering a cable operator to
refund previously paid rates to subscribers, a franchise authority
must give the operator notice and opportunity to comment.
B.
An operator's liability for refunds is limited to a one-year
period, except that an operator who fails to comply with a valid rate
order issued by a franchise authority or the FCC shall be liable for
refunds commencing from the effective date of such order until such
time as it complies with such order.
C.
The refund period shall run as follows:
(1)
From the date the operator implements a prospective rate reduction
back in time to September 1, 1993, or one year, whichever is shorter.
D.
The cable operator, in its discretion, may implement a refund in
the following manner:
(1)
By returning overcharges to those subscribers who actually paid the
overcharges, either through direct payment or as a specifically identified
credit to those subscribers' bills; or
(2)
By means of a prospective percentage reduction in the rates for the
basic service tier or associated equipment to cover the cumulative
overcharge. This shall be reflected as a specifically identified,
one-time credit on prospective bills to the class of subscribers that
currently subscribe to the cable system.
E.
Refunds shall include interest computed at applicable rates published
by the Internal Revenue Service for tax refunds and additional tax
payments.
A.
The Township Board of Trustees may impose a fine of not more than
$500 for each day a cable operator does not comply with a rate decision
or refund order directed specifically at the cable operator. Each
day from and after a date specified in the rate decision or refund
order in which a cable operator does not comply with the decision
or order shall constitute a separate violation of this Part 1.
B.
The remedy provided for in Subsection A of this section shall be in addition to any other remedy provided for by the FCC or federal or state law.
C.
A cable operator shall not be subject to forfeiture because its rate
for basic service or equipment is determined to be unreasonable.
A.
The FCC shall be the sole forum for appeals of decisions by franchising authorities on rates for the basic service tier or associated equipment involving whether or not a franchise authority has acted consistently with the Act or §§ 32-22 and 32-23. Appeals of ratemaking decisions by the franchising authority that do not depend upon determining whether a franchise authority has acted consistently with the Act or §§ 32-22 and 32-23 may be heard in state or local courts.
B.
Any participant at the franchise authority level in a ratemaking
proceeding may file an appeal of the franchise authority's decision
with the FCC within 30 days of release of the text of the franchise
authority's decision as computed under FCC regulations. Oppositions
may be filed within 15 days after the appeal is filed, and must be
served on the parties appealing the rate decision. Replies may be
filed seven days after the last day for oppositions and shall be served
on the parties to the proceeding.
A.
Upon assumption of rate regulation authority, the FCC will notify
the cable operator and require the cable operator to file its basic
rate schedule with the FCC within 30 days, with a copy to the local
franchise authority.
B.
Basic service and equipment rate schedule filings for existing rates
or proposed rate increases (including increases in the baseline channel
change that results from reductions in the number of channels in a
tier) must use the appropriate FCC forms. Cable operators with existing
or proposed rates above the permitted tier rate must submit a cost-of-service
showing sufficient to support a finding that the rates are reasonable.
C.
Filings proposing annual adjustments or rates within the rates regulation standards in §§ 32-22 and 32-23 must be made 30 days prior to the proposed effective date and can become effective on the proposed effective date unless the FCC issues an order deferring the effective date or denying the rate proposal. Petitions opposing such filings must be filed within 15 days of public notice of the filing by the cable operator and be accompanied by a certificate that service was made on the cable operator and the franchise authority. The cable operator may file an opposition within five days of filing of the petition, certifying to service on both the petitioner and the franchise authority.
D.
Filings proposing a rate not within the rate regulation standards of §§ 32-22 and 32-23 must be made 90 days before the requested effective date. Petitions opposing such filings must be filed within 30 days of public notice of the filing and be accompanied by a certificate that service was made on the cable operator and the franchise authority. The cable operator may file an opposition within 10 days of the filing of the petition, and certifying that service was made on the petitioner and the franchise authority.
Any subscriber, franchise authority, or other relevant state
or local government entity may file with the FCC a complaint challenging
the reasonableness of a cable operator's rate for cable programming
service, or the reasonableness of a cable operator's charges
for installation or rental of equipment used for the receipt of cable
programming service.
A.
Any complaint regarding a cable operator's rate for cable programming
service or associated equipment must be filed using standard complaint
form, FCC 329. The cable operator must provide a copy of the standard
complaint form to any subscriber upon request.
B.
The following information must be provided on the standard complaint
form:
(1)
The complainant's name, mailing address and daytime telephone
number;
(2)
The name, mailing address and FCC community unit identifier of the
relevant cable operator;
(3)
The name and address of the relevant franchise authority;
(5)
For subscriber complaints regarding a rate increase, the date the
complainant first received a bill from the cable operator reflecting
the increased rate;
(6)
A description of the cable programming service or associated equipment
involved and, if applicable, how the service or associated equipment
has changed;
(7)
The current rate for the cable programming service or associated
equipment at issue and, if the complainant is challenging the reasonableness
of a rate increase, the most recent rate for the service or associated
equipment immediately prior to the rate increase;
(9)
If the complainant is filing a corrected complaint, an indication
of the date the complainant filed the prior complaint and the date
the complainant received notification from the FCC that the prior
complaint was defective;
(10)
A certification that a copy of the complaint, including all
attachments, is being served contemporaneously via first class mail
on the cable operator and, if the complainant is a subscriber, on
the relevant franchise authority;
(11)
An allegation that the rate in question is unreasonable because
it violates the FCC rate regulations; and
(12)
A certification that, to the best of the complainant's
knowledge, the information provided on the form is true and correct.
C.
The complainant must attach to the standard complaint form a copy
of the most recent bill reflecting the disputed rate or rate increase.
D.
A complaining subscriber may, but is not required to, attach to the
standard complaint form a statement from the relevant franchise authority
presenting its views on the reasonableness of the rate in question.
All cable operators must provide the following information to
subscribers on monthly bills:
A.
Notwithstanding Subsection B of this section, a complaint regarding a rate for cable programming service or associated equipment in effect on September 1, 1993, must be filed by December 20, 1993.
B.
Complaint regarding a rate increase. Except as provided in Subsection A of this section, a complaint alleging an unreasonable rate for cable programming service or associated equipment may be filed against a cable operator only in the event of a rate increase. A complaint regarding a rate increase for cable programming or associated equipment must be filed with the FCC within 45 days from the date the complainant receives a bill from the cable operator that reflects the increased rate.
C.
Late-filed complaints. Late-filed complaints will be dismissed with
prejudice.
A.
The FCC will conduct an initial review of a complaint to determine if it meets the minimum showing required to allow the complaint to go forward. The minimum showing shall be satisfied if the complaint is filed using the standard complaint form described in § 32-42 and includes all information and attachments required by that form. A complainant will not be required, as part of the minimum showing, to provide the underlying information and calculations necessary to judge the cable programming service rate in question against the FCC rate standards.
B.
A complaint that does not meet the minimum showing requirement described in Subsection A of this section will be considered defective. A defective complaint will be dismissed without prejudice to filing a corrected complaint as provided by § 32-46. The FCC will notify the complainant by mail of the dismissal. The filing of a complaint on the applicable form, but which is otherwise defective, will toll the limitation period established by § 32-44.
A.
If the FCC dismisses an initial complaint without prejudice pursuant to § 32-45, the complainant shall have one additional opportunity to cure the defect and file a corrected complaint.
B.
For a complaint filed on the applicable form but otherwise defective,
the complainant must cure the defect and file a corrected complaint
with the FCC within 30 days from the date of the FCC's dismissal
notice. Failure to cure the defect and file a corrected complaint
within this time period will result in dismissal of the complaint
with prejudice.
A.
Unless the FCC notifies a cable operator to the contrary, the cable
operator must file with the FCC a response to a complaint filed on
the applicable form within 30 days of the date of service of the complaint.
The response shall indicate when service occurred. Service by mail
is complete upon mailing. The response shall include the information
required by the appropriate FCC form. The cable operator must serve
its response on the complainant and, if the complainant is a subscriber,
the relevant franchise authority via first-class mail.
B.
The burden shall be on the cable operator to prove that the service
rate or equipment charge in question is not unreasonable. The cable
operator may carry its burden in the following manner:
(1)
For a service rate at or below the permitted level, by providing
information and calculations that demonstrate that the rate in question
falls at or below the permitted level;
(2)
For a service rate that exceeds the permitted level:
(a)
By providing proof that the cable system has reduced the rate
for the cable programming service at issue to a level at or below
the permitted level; or
(b)
By providing detailed cost-based information that demonstrates
that the rate in question is reasonable despite the fact that it exceeds
the permitted level.
(3)
For a charge for equipment installation or rental, by providing information
that demonstrates that the charge is based on the cable operator's
actual cost.
C.
In addition to responding to the merits of a complaint, the cable
operator may also move for dismissal of the complaint for failure
to meet the minimum showing requirement. Any such motion for dismissal
must state with particularity the reasons the cable operator believes
the complaint is defective and shall not relieve the cable operator
of its obligation to respond to the merits of the complaint.
D.
A cable operator may file a consolidated response to multiple complaints
regarding the identical rate or rate increase. A consolidated response
must be filed within 30 days from the date of service of the first
complaint received unless the FCC notifies the cable operator to the
contrary. A cable operator may amend a consolidated response to address
new issues raised by complaints received after the cable operator's
initial response.
E.
A cable operator that fails to file and serve a response to a valid
complaint may be deemed in default. If the FCC deems a cable operator
in default, the FCC may enter an order against the cable operator
finding the rate to be unreasonable and mandating appropriate relief.
The FCC will consider the complaint and the cable operator's
response and then determine by written decision whether the rate for
the cable programming service or associated equipment is unreasonable
or not. If it determines that the rate in question is unreasonable,
the FCC will grant the complaint and may order appropriate relief,
including but not limited to prospective rate reductions and refunds.
If it determines that the rate in question is reasonable, the FCC
will deny the complaint.
Upon a finding that a rate for cable programming service or
associated equipment is unreasonable, the FCC may order the cable
operator to implement a prospective rate reduction to the class of
customers subscribing to the cable programming service at issue. The
FCC's decision regarding a prospective rate reduction shall remain
binding on the cable operator for one year unless the FCC specifies
otherwise.
A.
Upon a finding that a rate for cable programming service or associated
equipment is unreasonable, the FCC may order the cable operator to
refund to subscribers that portion of previously paid rates deemed
unreasonable.
B.
The cumulative refund due subscribers shall be calculated from the date a valid complaint is filed until the date a cable operator implements a prospective rate reduction as ordered by the FCC pursuant to § 32-49.
C.
The cable operator, in its discretion, may implement a refund in
the following manner:
(1)
By returning overcharges to those subscribers who actually paid the
overcharges, either through direct payment or as a specifically identified,
one-time credit to those subscribers' bills; or
(2)
By means of a prospective percentage reduction in the unreasonable
cable programming service rate or equipment charge to cover the cumulative
overcharge. This shall be reflected as a specifically identified,
one-time credit on prospective bills to the class of subscribers that
currently subscribe to the cable programming service or associated
equipment at issue.
D.
Refunds shall include interest computed at applicable rates published
by the Internal Revenue Service for tax refunds and additional tax
payments. Interest shall accrue from the date a valid complaint is
filed until the refund issues.
A.
Implementation. A cable operator must implement remedial requirements,
including prospective rate reductions and refunds, within 60 days
from the date the FCC releases an order mandating a remedy.
B.
Certification of compliance. A cable operator must certify to the
FCC its compliance with any FCC order mandating remedial requirements.
Such certification shall:
(1)
Be filed with the FCC within 90 days from the date the FCC releases
an order mandating a remedy;
(2)
Reference the applicable FCC order;
(3)
State that the cable operator has complied fully with all provisions
of the FCC's order;
(4)
Include a description of the precise measures the cable operator
has taken to implement the remedies ordered by the FCC; and
(5)
Be signed by an authorized representative of the cable operator.
A.
If any cable operator willfully fails to comply with the terms of
any FCC order, including an order mandating remedial requirements
after a finding of unreasonable cable programming service or equipment
rates, or any FCC rule, the FCC may, in addition to other remedies,
impose a forfeiture pursuant to Section 503(b) of the Communications
Act of 1934, as amended, 47 USC 503(b).
B.
A cable operator shall not be subject to forfeiture because its rate
for cable programming service or equipment is determined to be unreasonable.
In addition to the requirement of § 32-7 regarding advance notification to customers of any changes in rates, programming services or channel positions, a cable operator shall give the relevant franchise authority a minimum of 30 days' advance written notification of any changes in rates for cable programming service or associated equipment.
A.
This section shall govern charges for any changes in service tiers
or equipment provided to the subscriber that are initiated at the
request of a subscriber after initial service installation.
B.
The charge for customer changes in service tiers effected solely by coded entry on a computer terminal or by other similarly simple methods shall be a nominal amount, not exceeding actual costs, as defined in Subsection C of this section.
C.
The charge for customers changes in service tiers or equipment that
involve more than coded entry on a computer or other similarly simple
method shall be based on actual cost. The actual cost charge shall
be either the HSC, multiplied by the number of persons hours needed
to implement the change, or the HSC multiplied by the average number
of persons hours involved in implementing customer changes.
D.
A cable operator may establish a higher charge for changes effected
solely by coded entry on a computer terminal or by other similarly
simple methods, subject to approval by the franchise authority, for
a subscriber changing service tiers more than two times in a twelve-month
period, except for such changes ordered in response to a change in
price or channel lineup. If a cable system adopts such an increased
charge, the cable system must notify all subscribers in writing that
they may be subject to such a charge for changing service tiers more
than the specified number of times in any twelve-month period.
E.
Downgrade charges that are the same as or lower than upgrade charges
are evidence of the reasonableness of such downgrade charges.
F.
For 30 days after notice of retiering or rate increases, a customer
may obtain changes in service tiers at no additional charge.
A cable operator shall not charge a subscriber for any service
or equipment that the subscriber has not affirmatively requested by
name. This provision, however, shall not preclude the addition or
deletion of a specific program from a service offering, the addition
or deletion of specific channels from an existing tier of service,
or the restructuring or division of existing tiers of service that
do not result in a fundamental change in the nature of an existing
service or tier of service provided that such change is otherwise
consistent with applicable regulations. A subscriber's failure
to refuse a cable operator's proposal to provide service or equipment
is not an affirmative request for service or equipment. A subscriber's
affirmative request for service or equipment may be made orally or
in writing.
A.
No federal agency, state or local franchise authority may prohibit
a cable operator from offering reasonable discounts to senior citizens
or to economically disadvantaged groups.
(1)
Such discounts must be offered equally to all subscribers in the
franchise area who qualify as members of these categories, or any
reasonable subcategory.
(2)
For purposes of this section, members of economically disadvantaged
groups are those individuals who receive federal, state or local welfare
assistance.
B.
Nothing in this section shall preclude any federal agency, state
or local franchise authority from requiring and regulating the reception
of cable service by hearing impaired individuals.
A.
Cable operators may identify as a separate line item of each regular
subscriber bill the following:
(1)
The amount of the total bill assessed as a franchise fee and the
identity of the franchise authority to which the fee is paid.
(2)
The amount of the total bill assessed to satisfy any requirements
imposed on the cable operator by the franchise agreement to support
public, educational or governmental channels or the use of such channels.
(3)
The amount of any other fee, tax, assessment or charge of any kind
imposed by any governmental authority on the transaction between the
operator and the subscriber. In order for a governmental fee or assessment
to be separately identified under this section, it must be directly
imposed by a governmental body on a transaction between a subscriber
and an operator.
B.
The charge identified on the subscriber bill as the total charge
for cable service should include all fees and costs itemized pursuant
to this section.
C.
Local franchising authorities may adopt regulations consistent with
this section.
