83_FR_61001 83 FR 60773 - Modernization of Media Regulation Initiative: Revisions to Cable Television Rate Regulations

83 FR 60773 - Modernization of Media Regulation Initiative: Revisions to Cable Television Rate Regulations

FEDERAL COMMUNICATIONS COMMISSION

Federal Register Volume 83, Issue 228 (November 27, 2018)

Page Range60773-60776
FR Document2018-25326

In this document, the Federal Communications Commission (Commission) eliminate or revise expired and outdated cable rate regulation rules and close a related dormant docket.

Federal Register, Volume 83 Issue 228 (Tuesday, November 27, 2018)
[Federal Register Volume 83, Number 228 (Tuesday, November 27, 2018)]
[Rules and Regulations]
[Pages 60773-60776]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-25326]


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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Part 76

[MB Docket Nos. 17-105, 02-144; MM Docket Nos. 92-266, 93-215; CS 
Docket Nos. 94-28, 96-157; FCC 18-148]


Modernization of Media Regulation Initiative: Revisions to Cable 
Television Rate Regulations

AGENCY: Federal Communications Commission

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: In this document, the Federal Communications Commission 
(Commission) eliminate or revise expired and outdated cable rate 
regulation rules and close a related dormant docket.

DATES: Effective date: December 27, 2018.

FOR FURTHER INFORMATION CONTACT: For additional information on this 
proceeding, contact Katie Costello,

[[Page 60774]]

[email protected], of the Media Bureau, (202) 418-2233.

SUPPLEMENTARY INFORMATION: This is a summary of the Commission's Report 
and Order, FCC 18-148, adopted and released on October 23, 2018. The 
full text of these documents is available for public inspection and 
copying during regular business hours in the FCC Reference Center, 
Federal Communications Commission, 445 12th Street SW, CY-A257, 
Washington, DC 20554. These documents will also be available via ECFS 
(http://www.fcc.gov/cgb/ecfs/). (Documents will be available 
electronically in ASCII, Word 97, and/or Adobe Acrobat.) The complete 
text may be purchased from the Commission's copy contractor, 445 12th 
Street SW, Room CY-B402, Washington, DC 20554. To request these 
documents in accessible formats (computer diskettes, large print, audio 
recording, and Braille), send an email to [email protected] or call the 
Commission's Consumer and Governmental Affairs Bureau at (202) 418-0530 
(voice), (202) 418-0432 (TTY).

Synopsis

    In the Report and Order, we eliminate and revise rules that have 
become obsolete due to the sunset of rate regulation for cable 
programming service tiers, are unnecessary given changes in industry 
practices, or have become obsolete due to changes in Commission policy. 
For the reasons stated below, we find good cause to modify Sec.  
76.923(i) without notice and comment because the modification in 
question merely codifies an existing uncodified rule. We also eliminate 
the hard copies of Forms 328 and 329 located at the end of Sec.  76.985 
of our rules. We are not changing the text of Sec.  76.985 by deleting 
these hard copies, and they are unnecessary because Form 329 is no 
longer in use and Form 328 is available electronically. Finally, we 
eliminate Sec. Sec.  76.986, 76.987, 76.922(g)(7) and 76.922(n) of the 
rules and close proceedings related to uniform regional rate 
structures, which are moot due to the sunset of cable programming 
service tier (CPST) regulation.
    A la Carte Packages and New Product Tiers. We eliminate Sec. Sec.  
76.986 and 76.987 because they are vestiges of CPST regulation. These 
rule sections address ``a la carte'' packages and ``new product 
tiers,'' both of which are types of CPSTs. Therefore, because of the 
sunset of CPST regulation we remove these two sections from our rules.
    Equipment Leasing. We modify Sec.  76.923(i) to codify our 
previously adopted uncodified rule that, where an operator offers its 
equipment for sale as well as for lease, the sales price is 
unregulated. The lease price offers the safety of a cost-based 
regulated rate to subscribers and the operator's sales price for the 
same equipment is regulated by the market.
    Single Tier Small System Headend Upgrades. We remove Sec.  
76.922(g)(7) to reflect the sunset of the opportunity for single tier 
small systems to make headend upgrade adjustments. The time period for 
taking this rate increase, January 1, 1995 to December 31, 1997, has 
expired, and we see no continued need for this rule section.
    Uniform Regional Rate Structures. The Notice of Proposed Rulemaking 
in the Cable Pricing Flexibility Order, 61 FR 45387, and our 
interpretation in the Uniform Rate Order, 62 FR 15121, of Sec.  
76.922(n) of our rules are both moot due to the deregulation of the 
CPST. In the Cable Pricing Flexibility Order, we proposed exceptions to 
the CPST rate rules to allow operators to reduce BST prices and offset 
those reductions with increased CPST rates. Section 76.922(n) permits 
similar offsets for CPST rates in order to permit cable operators to 
establish uniform rates across multiple franchise areas. Now that CPST 
rates are no longer regulated, an operator may increase CPST rates 
without Commission approval so the exceptions to the CPST rate rules 
are no longer needed. Accordingly, we terminate CS Docket No. 96-157 
and remove Sec.  76.922(n) from our rules.
    Forms 328 and 329. Two hard copy FCC forms are located at the end 
of Sec.  76.985 of our rules in the Code of Federal Regulations. Form 
329 is an obsolete CPST complaint form. Form 328 is now available 
electronically. We delete these hard copy forms, including 
instructions, from Sec.  76.985 and modify Sec.  76.910 to direct 
interested parties to the electronic Form 328 and instructions.
    Paperwork Reduction Act.--The Report and Order eliminates, and thus 
does not contain new or revised, information collection requirements 
subject to the Paperwork Reduction Act of 1995, Public Law 104-13 (44 
U.S.C. 3501-3520). In addition, therefore, it does not contain any new 
or modified ``information burden for small business concerns with fewer 
than 25 employees'' pursuant to the Small Business Paperwork Relief Act 
of 2002, Public Law 107-198, 44 U.S.C. 3506(c)(4).
    Final Regulatory Flexibility Analysis. As required by the 
Regulatory Flexibility Act of 1980, as amended (``RFA''), an Initial 
Regulatory Flexibility Analysis (``IRFA'') was incorporated in the 
Notice of Proposed Rulemaking and Order, Revisions to Cable Television 
Rate Regulations (``NPRM''). The Commission sought written public 
comment on the proposals in the NPRM, including comment on the IRFA. No 
comments on the IRFA were received. This present Final Regulatory 
Flexibility Analysis (``FRFA'') conforms to the RFA.
    Need for, and Objectives of, the Revised Rules. In the past, the 
Commission developed rules and forms for the regulation of cable 
television rates when both the basic service tier (``BST'') and the 
cable programming service tiers (``CPST'') were subject to rate 
regulation. In this Report and Order, the Commission updates some of 
these regulations. Updating is needed so that the rules and rate forms 
will reflect the March 1999 sunset of cable programming services tier 
(``CPST'') rate regulation pursuant to the Telecommunications Act of 
1996. Finally, updating is required to address issues which have arisen 
over time. This Report and Order makes changes to remove rule sections 
that are obsolete due to the sunset of upper tier regulation. For cable 
systems in general, including small cable systems, in this Report and 
Order the Commission deletes or modifies rules relating solely to CPST 
regulation and modifies a rule to codify existing policy. All of these 
changes have the effect of eliminating or reducing regulatory burdens.
    Legal Basis. The authority for this action is contained in sections 
1, 2(a), 3, 4(i), 4(j), 303(r), 601(3), 602, and 623 of the 
Communications Act of 1934, as amended, 47 U.S.C. 151, 152(a), 153, 
154(i), 154(j), 303(r), 521, 522, and 543.
    Description and Estimate of the Number of Small Entities to Which 
the Proposed Rules Will Apply. The RFA directs agencies to provide a 
description of, and where feasible, an estimate of the number of small 
entities that may be affected by the modified rules. The RFA generally 
defines the term ``small entity'' as having the same meaning as the 
terms ``small business,'' ``small organization,'' and ``small 
governmental jurisdiction.'' In addition, the term ``small business'' 
has the same meaning as the term ``small business concern'' under the 
Small Business Act. A ``small business concern'' is one which: (1) Is 
independently owned and operated; (2) is not dominant in its field of 
operation; and (3) satisfies any additional criteria established by the 
SBA.
    The SBA has developed a small business size standard for Cable and 
Other Program Distribution, which consists of all such firms having 
$12.5 million or less in annual receipts. This category includes, among 
others, cable

[[Page 60775]]

operators, closed circuit television services, direct broadcast 
satellite services, multipoint distribution services, open video 
systems, satellite master antenna television systems, and subscription 
television services. According to Census Bureau data for 1997, in this 
category, there was a total of 1,311 firms that operated for the entire 
year, of which 1180 have less than $10 million in revenue and an 
additional 52 firms had revenue of $10 million or more but less than 
$25 million. Thus, under this size standard, the majority of firms can 
be considered small. In this category, only cable system operators are 
affected by this Report and Order and we address them below to provide 
a more precise estimate of the affected small entities.
    Cable Systems. The Commission has developed its own small business 
size standard for a small cable operator for the purposes of rate 
regulation. Under the Commission's rules, a ``small cable company'' is 
one serving fewer than 400,000 subscribers nationwide. Based on our 
most recent information, we estimate that there were 1,439 cable 
operators that qualified as small cable companies at the end of 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 1,439 small cable 
companies that may be affected by the proposed rules. A ``small 
system'' under the Commission's rules, is one serving ``15,000 or fewer 
subscribers. The service area of a small system shall be determined by 
the number of subscribers that are served by the system's principal 
headend, including any other headends or microwave receive sites that 
are technically integrated to the principal headend.'' The 
Communications Act of 1934, as amended, also contains a size standard 
for a ``small cable operator,'' which is ``a cable operator that, 
directly or through an affiliate, serves in the aggregate fewer than 
one percent of all subscribers in the United States and is not 
affiliated with any entity or entities whose gross annual revenues in 
the aggregate exceed $250,000,000.'' The Commission has determined that 
there are 67,700,000 cable subscribers in the United States. Therefore, 
an operator serving fewer than 677,000 subscribers shall be deemed a 
small operator, if its annual revenues, when combined with the total 
annual revenues of all of its affiliates, do not exceed $250 million in 
the aggregate. Based on this available data, we estimate that the 
number of cable operators serving 677,000 subscribers or less totals 
approximately 1,450. We do not request or collect information on 
whether cable operators are affiliated with entities whose gross annual 
revenues exceed $250,000,000, and therefore are unable to estimate 
accurately the number of cable system operators that would qualify as 
small cable operators under the definition in the Communications Act.
    Description of Projected Reporting, Recordkeeping and Other 
Compliance Requirements for Small Entities. No increase in the 
regulatory burden on small systems or small governmental entities is 
expected to result from this proceeding.
    Steps Taken to Minimize Significant Impact on Small Entities and 
Significant Alternatives Considered. The RFA requires an agency to 
describe any significant, specifically small business, alternatives 
that it has considered in reaching its approach, which may include the 
following four alternatives (among others): ``(1) The establishment of 
differing compliance or reporting requirements or timetables that take 
into account the resources available to small entities; (2) the 
clarification, consolidation, or simplification of compliance and 
reporting requirements under the rule for such small entities; (3) the 
use of performance rather than design standards; and (4) an exemption 
from coverage of the rule, or any part thereof, for such small 
entities.'' In general, this item does not impose any new regulatory 
burdens on large or small entities. Rather, it serves to streamline and 
update rules, thereby relieving burdens in general. Although the 
Commission requested comment on any changes in the rate rules that 
might address continuing difficulties faced by operators of small 
systems, such as the problems associated with the simultaneous growth 
in competition and the need for additional investment to upgrade 
facilities, no comments were received. The changes do not increase the 
regulatory burden small systems face as a result of rate regulation and 
may lessen it by reducing the amount of information required to be 
reported.
    Federal Rules Which Duplicate, Overlap, or Conflict with the 
Commission's Rules. None.
    For the reasons stated above, IT IS ORDERED that, pursuant to the 
authority found in sections 1, 2(a), 3, 4(i), 4(j), 303(r), 601(3), 
602, and 623 of the Communications Act of 1934, as amended, 47 U.S.C. 
151, 152(a), 153, 154(i), 154(j), 303(r), 521, 522, 543, this Report 
and Order IS ADOPTED. IT IS FURTHER ORDERED that, pursuant to the 
authority found in sections 1, 2(a), 3, 4(i), 4(j), 303(r), 601(3), 
602, and 623 of the Communications Act of 1934, as amended, 47 U.S.C. 
151, 152(a), 153, 154(i), 154(j), 303(r), 521, 522, 543, the 
Commission's rules ARE AMENDED as set forth below. IT IS FURTHER 
ORDERED that CS Docket No. 96-157 IS TERMINATED. IT IS FURTHER ORDERED 
that the Commission's Consumer and Governmental Affairs Bureau, 
Reference Information Center, SHALL SEND a copy of this Report and 
Order, including the Final Regulatory Flexibility Analyses, to the 
Chief Counsel for Advocacy of the Small Business Administration. IT IS 
FURTHER ORDERED that the Commission SHALL SEND a copy of this Report 
and Order in a report to be sent to Congress and the Government 
Accountability Office pursuant to the Congressional Review Act, see 5 
U.S.C. 801(a)(1)(A).

List of Subjects in 47 CFR Part 76

    Cable television, Reporting and recordkeeping requirements.

    Federal Communications Commission.
Cecilia Sigmund,
Federal Register Liaison Officer, Office of the Secretary.

Final Rules

    For the reasons set forth in the preamble, the Federal 
Communications Commission amends 47 CFR part 76 as follows:

PART 76--MULTICHANNEL VIDEO AND CABLE TELEVISION SERVICE

0
1. The authority citation for part 76 continues to read as follows:

    Authority: 47 U.S.C. 151, 152, 153, 154, 301, 302, 302a, 303, 
303a, 307, 308, 309, 312, 315, 317, 325, 339, 340, 341, 503, 521, 
522, 531, 532, 534, 535, 536, 537, 543, 544, 544a, 545, 548, 549, 
552, 554, 556, 558, 560, 561, 571, 572, 573.

0
2. Amend Sec.  76.901 by removing paragraph (d), redesignating 
paragraphs (e) and (f) as paragraphs (d) and (e), and revising the 
newly designated paragraph (e) to read as follows:


Sec.  76.901   Definitions.

* * * * *
    (e) Small cable operator. A small cable operator is an operator 
that, directly or through an affiliate, serves in the aggregate fewer 
than 1 percent of all subscribers in the United States and is not 
affiliated with any entity or entities whose gross annual revenues in 
the aggregate exceed $250,000,000. For purposes of this definition, an 
operator shall be deemed affiliated with another entity if that entity 
holds a 20 percent

[[Page 60776]]

or greater equity interest (not including truly passive investment) in 
the operator or exercises de jure or de facto control over the 
operator.
    (1) Using the most reliable sources publicly available, the 
Commission periodically will determine and give public notice of the 
subscriber count that will serve as the 1 percent threshold until a new 
number is calculated.
    (2) For a discussion of passive interests with respect to small 
cable operators, see Implementation of Cable Act Reform Provisions of 
the Telecommunications Act of 1996, Report and Order in CS Docket No. 
96-85, FCC 99-57 (released March 29, 1999).
    (3) If two or more entities unaffiliated with each other each hold 
an equity interest in the small cable operator, the equity interests of 
the unaffiliated entities will not be aggregated with each other for 
the purpose of determining whether an entity meets or passes the 20 
percent affiliation threshold.

0
3. Amend Sec.  76.910 by revising the first sentence and adding a 
second sentence to paragraph (c) to read as follows:


Sec.  76.910   Franchising authority certification.

* * * * *
    (c) The written certification described in paragraph (b) of this 
section shall be made by completing and filing FCC Form 328. FCC Form 
328 can be obtained from the internet at http://www.fcc.gov/Forms/Form328/328.pdf or by calling the FCC Forms Distribution Center at 1-
800-418-3676. * * *
* * * * *


Sec.  76.922   [Amended]

0
4. Amend Sec.  76.922 by removing and reserving paragraph (g)(7) and 
removing paragraph (n).

0
5. Amend Sec.  76.923 by adding a final sentence to paragraph (i) to 
read as follows:


Sec.  76.923   Rates for equipment and installation used to receive the 
basic service tier.

* * * * *
    (i) * * * Equipment sales by an operator will be unregulated where 
the operator offers subscribers the same equipment under regulated 
leased rates.
* * * * *


Sec.  76.985  [Amended]

0
6. Amend Sec.  76.985(c) by removing forms entitled ``FCC329'', 
``INSTRUCTIONS FOR FCC 328'' and ``FCC328''.


Sec. Sec.  76.986 and 76.987   [Removed]

0
7. Remove Sec. Sec.  76.986 and 76.987.

[FR Doc. 2018-25326 Filed 11-26-18; 8:45 am]
 BILLING CODE 6712-01-P



                                                              Federal Register / Vol. 83, No. 228 / Tuesday, November 27, 2018 / Rules and Regulations                                                                60773

                                             List of Subjects in 40 CFR Part 52                             Dated: November 2, 2018.                                  Subpart C—Alaska
                                                                                                          Chris Hladick,
                                               Environmental protection, Air                                                                                          ■  2. In § 52.70, the table in paragraph (e)
                                                                                                          Regional Administrator, Region 10.
                                             pollution control, Carbon monoxide,                                                                                      is amended by:
                                             Incorporation by reference,                                    For the reasons set forth in the                          ■ a. Revising entry III.II.D.; and
                                             Intergovernmental relations, Lead,                           preamble, 40 CFR part 52 is amended as                      ■ b. Adding entries ‘‘Infrastructure
                                             Nitrogen dioxide, Ozone, Particulate                         follows:                                                    Requirements—2012 PM2.5 NAAQS’’
                                             matter, Reporting and recordkeeping                                                                                      and ‘‘Infrastructure Requirements—
                                             requirements, Sulfur oxides, Volatile                        PART 52—APPROVAL AND                                        1997, 2006, and 2012 PM2.5 NAAQS’’
                                             organic compounds.                                           PROMULGATION OF                                             after entry ‘‘Interstate Transport
                                                                                                          IMPLEMENTATION PLANS                                        Requirements—2010 SO2 NAAQS’’.
                                                Authority: 42 U.S.C. 7401 et seq.
                                                                                                                                                                         The revision and additions read as
                                                                                                          ■ 1. The authority citation for part 52                     follows:
                                                                                                          continues to read as follows:                               § 52.70    Identification of plan.
                                                                                                              Authority: 42 U.S.C. 7401 et seq.                       *       *    *           *      *
                                                                                                                                                                          (e) * * *

                                                                 EPA-APPROVED ALASKA NONREGULATORY PROVISIONS AND QUASI-REGULATORY MEASURES
                                                                                               Applicable                            State
                                                       Name of SIP                                                                                             EPA approval
                                                                                           geographic or non-                      submittal                                                          Explanations
                                                        provision                                                                                                 date
                                                                                            attainment area                          date


                                                        *                       *                             *                        *                         *                       *                        *

                                                                                           State of Alaska Air Quality Control Plan: Volume III. Appendices

                                                                                                         Section II State Air Quality Control Program


                                                         *                     *                    *                                   *                       *                        *                        *
                                             III.II.D. CAA Section 110 Infra- Statewide ...............................               3/10/2016        11/27/2018, [Insert Federal
                                                 structure Certification Docu-                                                                           Register citation].
                                                 mentation and Supporting
                                                 Documents.

                                                        *                       *                             *                        *                         *                       *                        *

                                                                                                              Infrastructure and Interstate Transport


                                                        *                       *                             *                        *                         *                       *                        *

                                             Infrastructure Requirements—           Statewide ...............................         3/10/2016        11/27/2018, [Insert Federal           Approves SIP for purposes of
                                                2012 PM2.5 NAAQS.                                                                                        Register citation].                   CAA sections 110(a)(2)(A),
                                                                                                                                                                                               (B), (C), (D)(i)(II), (D)(ii),
                                                                                                                                                                                               (E), (F), (H), (J), (K), (L),
                                                                                                                                                                                               and (M) for the 2012 PM2.5
                                                                                                                                                                                               NAAQS.
                                             Infrastructure Requirements—           Statewide ...............................         3/10/2016        11/27/2018, [Insert Federal           Approves SIP for purposes of
                                                1997, 2006, and 2012                                                                                     Register citation].                   CAA sections 110(a)(2)(G)
                                                PM2.5 NAAQS.                                                                                                                                   for the 1997, 2006, and
                                                                                                                                                                                               2012 PM2.5 NAAQS.

                                                        *                       *                             *                        *                         *                       *                        *



                                             [FR Doc. 2018–25681 Filed 11–26–18; 8:45 am]                 FEDERAL COMMUNICATIONS                                      ACTION:    Final rule.
                                             BILLING CODE 6560–50–P                                       COMMISSION
                                                                                                                                                                      SUMMARY:  In this document, the Federal
                                                                                                          47 CFR Part 76                                              Communications Commission
                                                                                                                                                                      (Commission) eliminate or revise
                                                                                                          [MB Docket Nos. 17–105, 02–144; MM                          expired and outdated cable rate
                                                                                                          Docket Nos. 92–266, 93–215; CS Docket
                                                                                                                                                                      regulation rules and close a related
                                                                                                          Nos. 94–28, 96–157; FCC 18–148]
daltland on DSKBBV9HB2PROD with RULES




                                                                                                                                                                      dormant docket.
                                                                                                          Modernization of Media Regulation                           DATES: Effective date: December 27,
                                                                                                          Initiative: Revisions to Cable                              2018.
                                                                                                          Television Rate Regulations
                                                                                                                                                                      FOR FURTHER INFORMATION CONTACT:                 For
                                                                                                          AGENCY:Federal Communications                               additional information on this
                                                                                                          Commission                                                  proceeding, contact Katie Costello,


                                        VerDate Sep<11>2014   16:05 Nov 26, 2018    Jkt 247001    PO 00000        Frm 00045     Fmt 4700   Sfmt 4700    E:\FR\FM\27NOR1.SGM     27NOR1


                                             60774            Federal Register / Vol. 83, No. 228 / Tuesday, November 27, 2018 / Rules and Regulations

                                             katie.costello@fcc.gov, of the Media                    well as for lease, the sales price is                 Rulemaking and Order, Revisions to
                                             Bureau, (202) 418–2233.                                 unregulated. The lease price offers the               Cable Television Rate Regulations
                                             SUPPLEMENTARY INFORMATION: This is a                    safety of a cost-based regulated rate to              (‘‘NPRM’’). The Commission sought
                                             summary of the Commission’s Report                      subscribers and the operator’s sales                  written public comment on the
                                             and Order, FCC 18–148, adopted and                      price for the same equipment is                       proposals in the NPRM, including
                                             released on October 23, 2018. The full                  regulated by the market.                              comment on the IRFA. No comments on
                                             text of these documents is available for                   Single Tier Small System Headend                   the IRFA were received. This present
                                             public inspection and copying during                    Upgrades. We remove § 76.922(g)(7) to                 Final Regulatory Flexibility Analysis
                                             regular business hours in the FCC                       reflect the sunset of the opportunity for             (‘‘FRFA’’) conforms to the RFA.
                                             Reference Center, Federal                               single tier small systems to make                        Need for, and Objectives of, the
                                             Communications Commission, 445 12th                     headend upgrade adjustments. The time                 Revised Rules. In the past, the
                                             Street SW, CY–A257, Washington, DC                      period for taking this rate increase,                 Commission developed rules and forms
                                             20554. These documents will also be                     January 1, 1995 to December 31, 1997,                 for the regulation of cable television
                                             available via ECFS (http://www.fcc.gov/                 has expired, and we see no continued                  rates when both the basic service tier
                                             cgb/ecfs/). (Documents will be available                need for this rule section.                           (‘‘BST’’) and the cable programming
                                             electronically in ASCII, Word 97, and/                     Uniform Regional Rate Structures.                  service tiers (‘‘CPST’’) were subject to
                                             or Adobe Acrobat.) The complete text                    The Notice of Proposed Rulemaking in                  rate regulation. In this Report and
                                             may be purchased from the                               the Cable Pricing Flexibility Order, 61               Order, the Commission updates some of
                                             Commission’s copy contractor, 445 12th                  FR 45387, and our interpretation in the               these regulations. Updating is needed so
                                             Street SW, Room CY–B402, Washington,                    Uniform Rate Order, 62 FR 15121, of                   that the rules and rate forms will reflect
                                             DC 20554. To request these documents                    § 76.922(n) of our rules are both moot                the March 1999 sunset of cable
                                             in accessible formats (computer                         due to the deregulation of the CPST. In               programming services tier (‘‘CPST’’) rate
                                             diskettes, large print, audio recording,                the Cable Pricing Flexibility Order, we               regulation pursuant to the
                                             and Braille), send an email to fcc504@                  proposed exceptions to the CPST rate                  Telecommunications Act of 1996.
                                             fcc.gov or call the Commission’s                        rules to allow operators to reduce BST                Finally, updating is required to address
                                             Consumer and Governmental Affairs                       prices and offset those reductions with               issues which have arisen over time. This
                                             Bureau at (202) 418–0530 (voice), (202)                 increased CPST rates. Section 76.922(n)               Report and Order makes changes to
                                             418–0432 (TTY).                                         permits similar offsets for CPST rates in             remove rule sections that are obsolete
                                                                                                     order to permit cable operators to                    due to the sunset of upper tier
                                             Synopsis                                                establish uniform rates across multiple               regulation. For cable systems in general,
                                                In the Report and Order, we eliminate                franchise areas. Now that CPST rates are              including small cable systems, in this
                                             and revise rules that have become                       no longer regulated, an operator may                  Report and Order the Commission
                                             obsolete due to the sunset of rate                      increase CPST rates without                           deletes or modifies rules relating solely
                                             regulation for cable programming                        Commission approval so the exceptions                 to CPST regulation and modifies a rule
                                             service tiers, are unnecessary given                    to the CPST rate rules are no longer                  to codify existing policy. All of these
                                             changes in industry practices, or have                  needed. Accordingly, we terminate CS                  changes have the effect of eliminating or
                                             become obsolete due to changes in                       Docket No. 96–157 and remove                          reducing regulatory burdens.
                                             Commission policy. For the reasons                      § 76.922(n) from our rules.                              Legal Basis. The authority for this
                                             stated below, we find good cause to                        Forms 328 and 329. Two hard copy                   action is contained in sections 1, 2(a), 3,
                                             modify § 76.923(i) without notice and                   FCC forms are located at the end of                   4(i), 4(j), 303(r), 601(3), 602, and 623 of
                                             comment because the modification in                     § 76.985 of our rules in the Code of                  the Communications Act of 1934, as
                                             question merely codifies an existing                    Federal Regulations. Form 329 is an                   amended, 47 U.S.C. 151, 152(a), 153,
                                             uncodified rule. We also eliminate the                  obsolete CPST complaint form. Form                    154(i), 154(j), 303(r), 521, 522, and 543.
                                             hard copies of Forms 328 and 329                        328 is now available electronically. We                  Description and Estimate of the
                                             located at the end of § 76.985 of our                   delete these hard copy forms, including               Number of Small Entities to Which the
                                             rules. We are not changing the text of                  instructions, from § 76.985 and modify                Proposed Rules Will Apply. The RFA
                                             § 76.985 by deleting these hard copies,                 § 76.910 to direct interested parties to              directs agencies to provide a description
                                             and they are unnecessary because Form                   the electronic Form 328 and                           of, and where feasible, an estimate of
                                             329 is no longer in use and Form 328                    instructions.                                         the number of small entities that may be
                                             is available electronically. Finally, we                   Paperwork Reduction Act.—The                       affected by the modified rules. The RFA
                                             eliminate §§ 76.986, 76.987, 76.922(g)(7)               Report and Order eliminates, and thus                 generally defines the term ‘‘small
                                             and 76.922(n) of the rules and close                    does not contain new or revised,                      entity’’ as having the same meaning as
                                             proceedings related to uniform regional                 information collection requirements                   the terms ‘‘small business,’’ ‘‘small
                                             rate structures, which are moot due to                  subject to the Paperwork Reduction Act                organization,’’ and ‘‘small governmental
                                             the sunset of cable programming service                 of 1995, Public Law 104–13 (44 U.S.C.                 jurisdiction.’’ In addition, the term
                                             tier (CPST) regulation.                                 3501–3520). In addition, therefore, it                ‘‘small business’’ has the same meaning
                                                A la Carte Packages and New Product                  does not contain any new or modified                  as the term ‘‘small business concern’’
                                             Tiers. We eliminate §§ 76.986 and                       ‘‘information burden for small business               under the Small Business Act. A ‘‘small
                                             76.987 because they are vestiges of                     concerns with fewer than 25                           business concern’’ is one which: (1) Is
                                             CPST regulation. These rule sections                    employees’’ pursuant to the Small                     independently owned and operated; (2)
                                             address ‘‘a la carte’’ packages and ‘‘new               Business Paperwork Relief Act of 2002,                is not dominant in its field of operation;
                                             product tiers,’’ both of which are types                Public Law 107–198, 44 U.S.C.                         and (3) satisfies any additional criteria
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                                             of CPSTs. Therefore, because of the                     3506(c)(4).                                           established by the SBA.
                                             sunset of CPST regulation we remove                        Final Regulatory Flexibility Analysis.                The SBA has developed a small
                                             these two sections from our rules.                      As required by the Regulatory                         business size standard for Cable and
                                                Equipment Leasing. We modify                         Flexibility Act of 1980, as amended                   Other Program Distribution, which
                                             § 76.923(i) to codify our previously                    (‘‘RFA’’), an Initial Regulatory                      consists of all such firms having $12.5
                                             adopted uncodified rule that, where an                  Flexibility Analysis (‘‘IRFA’’) was                   million or less in annual receipts. This
                                             operator offers its equipment for sale as               incorporated in the Notice of Proposed                category includes, among others, cable


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                                                              Federal Register / Vol. 83, No. 228 / Tuesday, November 27, 2018 / Rules and Regulations                                            60775

                                             operators, closed circuit television                    we estimate that the number of cable                  the authority found in sections 1, 2(a),
                                             services, direct broadcast satellite                    operators serving 677,000 subscribers or              3, 4(i), 4(j), 303(r), 601(3), 602, and 623
                                             services, multipoint distribution                       less totals approximately 1,450. We do                of the Communications Act of 1934, as
                                             services, open video systems, satellite                 not request or collect information on                 amended, 47 U.S.C. 151, 152(a), 153,
                                             master antenna television systems, and                  whether cable operators are affiliated                154(i), 154(j), 303(r), 521, 522, 543, the
                                             subscription television services.                       with entities whose gross annual                      Commission’s rules ARE AMENDED as
                                             According to Census Bureau data for                     revenues exceed $250,000,000, and                     set forth below. IT IS FURTHER
                                             1997, in this category, there was a total               therefore are unable to estimate                      ORDERED that CS Docket No. 96–157 IS
                                             of 1,311 firms that operated for the                    accurately the number of cable system                 TERMINATED. IT IS FURTHER
                                             entire year, of which 1180 have less                    operators that would qualify as small                 ORDERED that the Commission’s
                                             than $10 million in revenue and an                      cable operators under the definition in               Consumer and Governmental Affairs
                                             additional 52 firms had revenue of $10                  the Communications Act.                               Bureau, Reference Information Center,
                                             million or more but less than $25                          Description of Projected Reporting,                SHALL SEND a copy of this Report and
                                             million. Thus, under this size standard,                Recordkeeping and Other Compliance                    Order, including the Final Regulatory
                                             the majority of firms can be considered                 Requirements for Small Entities. No                   Flexibility Analyses, to the Chief
                                             small. In this category, only cable                     increase in the regulatory burden on                  Counsel for Advocacy of the Small
                                             system operators are affected by this                   small systems or small governmental                   Business Administration. IT IS
                                             Report and Order and we address them                    entities is expected to result from this              FURTHER ORDERED that the
                                             below to provide a more precise                         proceeding.                                           Commission SHALL SEND a copy of
                                             estimate of the affected small entities.                   Steps Taken to Minimize Significant                this Report and Order in a report to be
                                                                                                     Impact on Small Entities and                          sent to Congress and the Government
                                               Cable Systems. The Commission has                     Significant Alternatives Considered. The
                                             developed its own small business size                                                                         Accountability Office pursuant to the
                                                                                                     RFA requires an agency to describe any                Congressional Review Act, see 5 U.S.C.
                                             standard for a small cable operator for                 significant, specifically small business,
                                             the purposes of rate regulation. Under                                                                        801(a)(1)(A).
                                                                                                     alternatives that it has considered in
                                             the Commission’s rules, a ‘‘small cable                 reaching its approach, which may                      List of Subjects in 47 CFR Part 76
                                             company’’ is one serving fewer than                     include the following four alternatives
                                             400,000 subscribers nationwide. Based                                                                           Cable television, Reporting and
                                                                                                     (among others): ‘‘(1) The establishment               recordkeeping requirements.
                                             on our most recent information, we                      of differing compliance or reporting
                                             estimate that there were 1,439 cable                                                                            Federal Communications Commission.
                                                                                                     requirements or timetables that take into
                                             operators that qualified as small cable                 account the resources available to small              Cecilia Sigmund,
                                             companies at the end of 1995. Since                     entities; (2) the clarification,                      Federal Register Liaison Officer, Office of the
                                             then, some of those companies may                       consolidation, or simplification of                   Secretary.
                                             have grown to serve over 400,000                        compliance and reporting requirements                 Final Rules
                                             subscribers, and others may have been                   under the rule for such small entities;
                                             involved in transactions that caused                                                                            For the reasons set forth in the
                                                                                                     (3) the use of performance rather than
                                             them to be combined with other cable                                                                          preamble, the Federal Communications
                                                                                                     design standards; and (4) an exemption
                                             operators. Consequently, we estimate                    from coverage of the rule, or any part                Commission amends 47 CFR part 76 as
                                             that there are fewer than 1,439 small                   thereof, for such small entities.’’ In                follows:
                                             cable companies that may be affected by                 general, this item does not impose any
                                             the proposed rules. A ‘‘small system’’                                                                        PART 76—MULTICHANNEL VIDEO
                                                                                                     new regulatory burdens on large or                    AND CABLE TELEVISION SERVICE
                                             under the Commission’s rules, is one                    small entities. Rather, it serves to
                                             serving ‘‘15,000 or fewer subscribers.                  streamline and update rules, thereby                  ■ 1. The authority citation for part 76
                                             The service area of a small system shall                relieving burdens in general. Although                continues to read as follows:
                                             be determined by the number of                          the Commission requested comment on
                                             subscribers that are served by the                                                                              Authority: 47 U.S.C. 151, 152, 153, 154,
                                                                                                     any changes in the rate rules that might              301, 302, 302a, 303, 303a, 307, 308, 309, 312,
                                             system’s principal headend, including                   address continuing difficulties faced by              315, 317, 325, 339, 340, 341, 503, 521, 522,
                                             any other headends or microwave                         operators of small systems, such as the               531, 532, 534, 535, 536, 537, 543, 544, 544a,
                                             receive sites that are technically                      problems associated with the                          545, 548, 549, 552, 554, 556, 558, 560, 561,
                                             integrated to the principal headend.’’                  simultaneous growth in competition                    571, 572, 573.
                                             The Communications Act of 1934, as                      and the need for additional investment                ■ 2. Amend § 76.901 by removing
                                             amended, also contains a size standard                  to upgrade facilities, no comments were               paragraph (d), redesignating paragraphs
                                             for a ‘‘small cable operator,’’ which is ‘‘a            received. The changes do not increase                 (e) and (f) as paragraphs (d) and (e), and
                                             cable operator that, directly or through                the regulatory burden small systems                   revising the newly designated paragraph
                                             an affiliate, serves in the aggregate fewer             face as a result of rate regulation and               (e) to read as follows:
                                             than one percent of all subscribers in                  may lessen it by reducing the amount of
                                             the United States and is not affiliated                 information required to be reported.                  § 76.901   Definitions.
                                             with any entity or entities whose gross                    Federal Rules Which Duplicate,                     *     *      *     *    *
                                             annual revenues in the aggregate exceed                 Overlap, or Conflict with the                           (e) Small cable operator. A small
                                             $250,000,000.’’ The Commission has                      Commission’s Rules. None.                             cable operator is an operator that,
                                             determined that there are 67,700,000                       For the reasons stated above, IT IS                directly or through an affiliate, serves in
                                             cable subscribers in the United States.                 ORDERED that, pursuant to the                         the aggregate fewer than 1 percent of all
                                             Therefore, an operator serving fewer                    authority found in sections 1, 2(a), 3,               subscribers in the United States and is
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                                             than 677,000 subscribers shall be                       4(i), 4(j), 303(r), 601(3), 602, and 623 of           not affiliated with any entity or entities
                                             deemed a small operator, if its annual                  the Communications Act of 1934, as                    whose gross annual revenues in the
                                             revenues, when combined with the total                  amended, 47 U.S.C. 151, 152(a), 153,                  aggregate exceed $250,000,000. For
                                             annual revenues of all of its affiliates, do            154(i), 154(j), 303(r), 521, 522, 543, this           purposes of this definition, an operator
                                             not exceed $250 million in the                          Report and Order IS ADOPTED. IT IS                    shall be deemed affiliated with another
                                             aggregate. Based on this available data,                FURTHER ORDERED that, pursuant to                     entity if that entity holds a 20 percent


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                                             60776            Federal Register / Vol. 83, No. 228 / Tuesday, November 27, 2018 / Rules and Regulations

                                             or greater equity interest (not including               §§ 76.986 and 76.987         [Removed]                   Under § 635.5(b)(1), dealers must
                                             truly passive investment) in the operator               ■   7. Remove §§ 76.986 and 76.987.                   electronically submit reports on sharks
                                             or exercises de jure or de facto control                                                                      that are first received from a vessel on
                                                                                                     [FR Doc. 2018–25326 Filed 11–26–18; 8:45 am]
                                             over the operator.                                                                                            a weekly basis through a NMFS-
                                                                                                     BILLING CODE 6712–01–P
                                               (1) Using the most reliable sources                                                                         approved electronic reporting system.
                                             publicly available, the Commission                                                                            Reports must be received by no later
                                             periodically will determine and give                                                                          than midnight, local time, of the first
                                             public notice of the subscriber count                   DEPARTMENT OF COMMERCE                                Tuesday following the end of the
                                             that will serve as the 1 percent                                                                              reporting week unless the dealer is
                                             threshold until a new number is                         National Oceanic and Atmospheric                      otherwise notified by NMFS.
                                             calculated.                                             Administration                                           Under § 635.28(b)(2), when NMFS
                                               (2) For a discussion of passive                                                                             calculates that the landings for any
                                                                                                     50 CFR Part 635                                       species and/or management group that
                                             interests with respect to small cable
                                                                                                                                                           has a non-linked quota has reached or
                                             operators, see Implementation of Cable                  [Docket No. 150413357–5999–02]                        is projected to reach a threshold of 80
                                             Act Reform Provisions of the
                                                                                                     RIN 0648–XG647                                        percent of the available quota, NMFS
                                             Telecommunications Act of 1996,
                                                                                                                                                           will file for publication, with the Office
                                             Report and Order in CS Docket No. 96–
                                                                                                     Atlantic Highly Migratory Species;                    of the Federal Register, a notice of
                                             85, FCC 99–57 (released March 29,
                                                                                                     Commercial Blacktip Sharks in the                     closure for that species and/or
                                             1999).
                                                                                                     Eastern Gulf of Mexico Sub-Region;                    management group that will be effective
                                               (3) If two or more entities unaffiliated                                                                    no fewer than four days from date of
                                                                                                     Closure
                                             with each other each hold an equity                                                                           filing.
                                             interest in the small cable operator, the               AGENCY:  National Marine Fisheries                       From the effective date and time of
                                             equity interests of the unaffiliated                    Service (NMFS), National Oceanic and                  the closure until and if NMFS
                                             entities will not be aggregated with each               Atmospheric Administration (NOAA),                    announces, via a notice in the Federal
                                             other for the purpose of determining                    Commerce.                                             Register, that additional quota is
                                             whether an entity meets or passes the 20                ACTION: Temporary rule; closure.                      available and the season is reopened,
                                             percent affiliation threshold.                                                                                the fisheries for all linked species and/
                                             ■ 3. Amend § 76.910 by revising the first               SUMMARY:   NMFS is closing the                        or management groups and specified
                                             sentence and adding a second sentence                   commercial fishery for blacktip sharks                non-linked species and/or management
                                             to paragraph (c) to read as follows:                    in the eastern Gulf of Mexico sub-                    groups are closed, even across fishing
                                                                                                     region. This action is necessary because,             years.
                                             § 76.910 Franchising authority                          as of reports received by November 16,                   On November 22, 2017 (82 FR 55512),
                                             certification.                                          2018, the commercial landings of                      NMFS announced that for 2018, the
                                             *     *     *    *     *                                blacktip sharks in the eastern Gulf of                commercial eastern Gulf of Mexico
                                               (c) The written certification described               Mexico sub-region for the 2018 fishing                blacktip shark sub-regional quota was
                                             in paragraph (b) of this section shall be               season have reached 97 percent of the                 37.7 metric tons (mt) dressed weight
                                             made by completing and filing FCC                       available commercial quota. Therefore,                (dw) (83,158 lb dw). Dealer reports
                                             Form 328. FCC Form 328 can be                           NMFS is closing the blacktip shark                    received through November 16, 2018,
                                             obtained from the internet at http://                   fishery in the eastern Gulf of Mexico                 indicate that 97 percent (36.7 mt dw) of
                                             www.fcc.gov/Forms/Form328/328.pdf or                    sub-region. This closure will affect                  the available eastern Gulf of Mexico
                                             by calling the FCC Forms Distribution                   anyone commercially fishing for                       blacktip shark sub-regional quota has
                                             Center at 1–800–418–3676. * * *                         blacktip sharks in the eastern Gulf of                been landed. Based on these dealer
                                             *     *     *    *     *                                Mexico sub-region.                                    reports, landings have exceeded 80
                                                                                                     DATES: The commercial fishery for                     percent of the eastern Gulf of Mexico
                                             § 76.922   [Amended]                                    blacktip sharks in the eastern Gulf of                blacktip shark sub-regional quota.
                                                                                                     Mexico sub-region is closed effective                 Therefore, the blacktip shark fishery
                                             ■ 4. Amend § 76.922 by removing and
                                                                                                     11:30 p.m. local time November 25,                    meets the closure threshold.
                                             reserving paragraph (g)(7) and removing
                                                                                                     2018, until the end of the 2018 fishing               Accordingly, NMFS is closing the
                                             paragraph (n).
                                                                                                     season on December 31, 2018, or until                 blacktip shark fishery in the eastern
                                             ■ 5. Amend § 76.923 by adding a final                                                                         Gulf of Mexico sub-region as of 11:30
                                                                                                     and if NMFS announces via a notice in
                                             sentence to paragraph (i) to read as                    the Federal Register that additional                  p.m. local time November 25, 2018.
                                             follows:                                                quota is available and the season is                     All other shark species or
                                                                                                     reopened.                                             management groups in the eastern Gulf
                                             § 76.923 Rates for equipment and
                                             installation used to receive the basic                                                                        of Mexico sub-region that are currently
                                                                                                     FOR FURTHER INFORMATION CONTACT:                      open will remain open, including the
                                             service tier.
                                                                                                     Lauren Latchford or Karyl Brewster-                   commercial eastern Gulf of Mexico
                                             *     *    *     *     *                                Geisz 301–427–8503; fax 301–713–1917.                 aggregated LCS, eastern Gulf of Mexico
                                               (i) * * * Equipment sales by an                       SUPPLEMENTARY INFORMATION: The                        hammerhead sharks, Gulf of Mexico
                                             operator will be unregulated where the                  Atlantic shark fisheries are managed                  non-blacknose small coastal sharks, blue
                                             operator offers subscribers the same                    under the 2006 Consolidated Highly                    sharks, smoothhound sharks, and
                                             equipment under regulated leased rates.                 Migratory Species (HMS) Fishery                       pelagic sharks other than porbeagle or
                                             *     *    *     *     *                                Management Plan (FMP), its
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                                                                                                                                                           blue sharks.
                                                                                                     amendments, and implementing                             The boundary between the Gulf of
                                             § 76.985   [Amended]
                                                                                                     regulations (50 CFR part 635) issued                  Mexico region and the Atlantic region is
                                             ■  6. Amend § 76.985(c) by removing                     under authority of the Magnuson-                      defined at § 635.27(b)(1) as a line
                                             forms entitled ‘‘FCC329’’,                              Stevens Fishery Conservation and                      beginning on the East Coast of Florida
                                             ‘‘INSTRUCTIONS FOR FCC 328’’ and                        Management Act (16 U.S.C. 1801 et                     at the mainland at 25°20.4′ N lat,
                                             ‘‘FCC328’’.                                             seq.).                                                proceeding due east. Any water and


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Document Created: 2018-11-27 01:25:46
Document Modified: 2018-11-27 01:25:46
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionRules and Regulations
ActionFinal rule.
DatesEffective date: December 27, 2018.
ContactFor additional information on this proceeding, contact Katie Costello, [email protected], of the Media Bureau, (202) 418-2233.
FR Citation83 FR 60773 
CFR AssociatedCable Television and Reporting and Recordkeeping Requirements

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