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HomeMy WebLinkAboutAgenda - 09-21-1993 - VIII-A 1 ORANGE COUNTY BOARD OF COMMISSIONERS Action Agenda Item No. VTU-A ACTION AGENDA ITEM ABSTRACT Meeting Date: September 21, 1993 SUBJECT: Authorization to Regulate Cable Television Rates DEPARTMENT: County Manager PUBLIC HEARING YES: NO: X ATTACHMENT(S) : INFORMATION CONTACT: Albert Kittrell FCC Form 328, Certification EXT. 2300 to Regulate Cable Rates TELEPHONE NUMBER- Hillsborough -732-8181 Chapel Hill -968-4501 Mebane -227-2031 - Durham -688-7331 PURPOSE: To approve certification process authorizing the County to apply to the Federal Communications Commission (FCC) for = authorization to regulate certain cable rates. BACKGROUND: The Cable Television Consumer Protection And Competition Act of 1992 (Cable TV Act) expanded the authority of the FCC to regulate rates of cable systems for various services. The FCC recently disseminated guidelines for implementation of the legislations. The guidelines permit local governments to apply to the FCC for certification to enforce rates for local broadcast television signals and "public access" channels. The earliest date a local government could apply for certification was September 1, 1993. After review of the certification and no action taken by the FCC, the certification is considered approved 30 days after submission. The attached certification form must confirm that the County will enforce the applicable rate regulations consistent with FCC guidelines, that the County considers the local cable system subject to FCC rate regulations, and that the County has the authority and ability to enforce the rate regulations. 2 If the County receives the FCC certification we will be able to enforce the federal guidelines. The guidelines provide for cable rates to be limited under tables which indicate monthly rates for the television and access channels based on the number of channels and number of subscribers in the cable system. In order to regulate rates of the local cable systems, the County will incur costs for rate reviews and analysis. All local governments in the Triangle J Council of Governments Region have met to discuss the scope of work and cost associated with rate regulation administration by local governments. To assist with rate regulation administration, Triangle J Council of Governments has submitted a proposal to all governmental units in the region outlining the services TJCOG staff can provide at a modest fee. The Cable TV Citizen Advisory Committee will study the aforementioned proposal and other options at their October 13 meeting. County staff will provide recommendations for rate regulation administration for the Board' s consideration at the October 19 Commissioner' s Meeting. Also, at the October 19 Commissioners Meeting, staff will submit for adoption a resolution indicating that the County will enforce applicable rate regulations consistent with the FCC guidelines. The Cable TV Citizen Advisory Committee reviewed the Cable Act and cable rate regulation at their September 1, 1993 meeting. The committee recommended that the Board of Commissioners apply to the FCC for authorization to enforce federal rules regulating certain cable television rates. RECOMMENDATION(S) : Manager recommends that the Board authorize the submission of the Federal Communication Commission Form 328 certifying the County will administer cable rates regulations consistent with FCC guidelines. r-OCr■I lwevruneCateons lomreeueor, tsyrn 05'31/96 Washington,V.C. 20554 FCC 328 For FCC Use Only CERTIFICATION OF FRANCHISING AUTHORITY TO REGULATE BASIC CABLE SERVICE RATES AND INITIAL FINDING OF LACK OF EFFECTIVE COMPETITION 1 Name of Franchising Authority 3. Will your franchising authority adopt Yes r No Orange County (within 120 days of certification) and t __ Mailing Address administer regulations with respect to ?'0 Box 8181 basic cable service that are consistent City State ZIP Code with the regulations adopted by the FCC _1 s• • Ir s ► • pursuant to 47 U.S.C.Section 543(b)? Telephone No.(include area code): (919) 732-8181 Ext. 2300 4. With respect to the franchising authority's regulations referred Person to contact with respect to this form: to in Question 3, ©Yes E No Albert Kittrell, Assistant County Manager a. Does your franchising authority have the legal authority to adopt them? w2.a. Name(s)and address(es)of cable system(s)and associated FCC community b. Does your franchising authority have es I 1 No unit identifiers within your jurisdiction. (Attach additional sheets if necessary.)' " the personnel to administer them? Cable System's Name Cablevision 5. Do the procedural laws and regulations I -()Yes DNo Mailing Address applicable to rate regulation proceedings 1129 Weaver Dairy Road by your franchising authority provide a City - State ZIP Code reasonable opportunity for consideration Chapel Hill NC 27512 of the views of interested parties? Cable System's FCC Community Unit Identifier: NCO256 ©Yes ❑No ' 6. The Commission presumes that the cable system(s) listed in 2.b. is (are) not subject • to effective competition. Based on the Cable System's Name Cablevision Industries (CVI) definition below, do you have reason to believe that this presumption is correct? Mailing Address PO Box 126 (Effective competition means that (a) fewer than 30 percent of the City State ZIP Code households in the franchise area subscribe to the cable service of a Cary NC 27512 cable system; (b) the franchise area is (i) served by at least two Cable System's FCC Community Unit Identifier: unaffiliated multichannel video programming distributors each of NCO256 which offers comparable video programming to at least 50 percent of the households in the franchise area; and (ii) the number of households subscribing to programming services offered by 2. b. Name (s) of system(s) and associated community unit identifier(s) you multichannel video programming distributors other than the largest claim are subject to regulation and with respect to which you are filing this certification. (Attach additional sheets if necessary.) multichannel video programming distributor exceeds 15 percent of the households in the franchise area; or (c) a multichannel video I Name of System 1 Community Unit programming distributor operated by the franchising authority for Identifier that franchise area offers video programming to at least 50 percent Cablevision NCO276 of the households in that franchise area.) Name of System Community Unit Si ture Identifier /' I Cablevision Industries (CVI.. NCO256 Title CHAIR, OrRArs aS cour[TY / r1OAR*3 op' COMMISSIONERS 2. c. Have you served a copy of this form on all parties ©Yes C No Date listed in 2.b.? WILLFUL FALSE STATEMENTS MADE ON THIS FORM ARE PUNISHABLE BY FINE AND/OR IMPRISONMENT(U.S.CODE TITLE 18,SECTION 1001). Return the original and one copy of this certification form(as indicated in Instructions),along with any attachments,to: Federal Communications Commission DATE ;/ /" Attn: Cable Franchising Authority Certification P.O.Box 18539 IT Washington,D.C. 20036 // �' FCC 320 r August 1993 Federal Communications Commission approved by OMB Washington,D.C. 20554 3060-0550 Expires 05/31/96 INSTRUCTIONS FOR FCC 328 FRANCHISING AUTHORITY CERTIFICATION 1. The Cable Television Consumer Protection and Competition Act, Question 4(b): The franchising authority must have a sufficient enacted in October 1992, changes the manner in which cable number of personnel to undertake rate regulation. television systems that are not subject to effective competition are regulated. In general,rates for the basic s rvi e tier(the tier required A franchise authority unable to answer"yes"to questions 4(a)or 4(b) as a condition of access to all other video services and containing, may wish to review the FCC's Report and Order in_Docket 92-266, among other services, local broadcast station signals and public, FCC 93-177 (released May 3, 1993) for further information on the educational, and public access channels) and associated equipment establishment of alternative federal regulatory procedures. will be subject to regulation by local or state governments ("franchising authorities"). Rates for cable programming services and 9. Question 5:Franchising authorities must have procedural regulations associated equipment(all services except basic and pay channels)will allowing for public participation in rate regulation proceedings. If a be subject to regulation by the FCC. Rates for pay channels franchising authority does not have these regulations already in place, (channels for which there is a specific per-channel or per-program it must adopt them within 120 days of certification and before it may charge)are not regulated. undertake rate regulation. 2. Only cable systems that are not subject to effective competition may 10. Question 6: Most cable systems are II4t subject to effective be regulated. Effective competition means that (a) fewer than 30 competition,as defined by the Cable Act. (The definition is included percent of the households in the franchise area subscribe to the cable above and on the form.) The franchising authority may presume that service of a cable system;(b)the franchise area is(i)served by at least the cable system in its jurisdiction is not subject to effective two unaffiliated multichannel video programming distributors each of competition. which offers comparable video programming to at ieast 50 percent of the households in the franchise area; and (ii) the number of For purposes of applying the definition of effective competition (see households subscribing to programming services offered by - Item 2 above),"multichannel video programming distributors"include multichannel video programming distributors other than the largest a cable operator, a multichannel multipoint distribution service, a multichannel video programming distributor exceeds 15 percent of direct broadcast satellite service, a television receive-only satellite the households in the franchise area; or (c) a multichannel video program distributor, a video dialtone service, and a satellite master programming distributor operated by the franchising authority for that antenna television system. A multichannel video programming franchise area offers video programming to at least 50 percent of the distributor's services will be deemed "offered" when they are both households in that franchise area. technically and actually available. Service is "technically available" when the multichannel distributor is physically able to deliver the 3. In order to regulate basic service tier rates, a franchising authority service to a household wishing to subscribe, with only minimal must be certified by the FCC. In order to be certified, a franchising additional investment by the distributor. A service is "actually authority must complete this form. An original and one copy of the available" if subscribers in the franchise area are reasonably aware completed form and all attachments must be returned to the FCC through marketing efforts that the service is available. Subscribership by registered mail, return receipt requested, to the FCC at the of those multichannel video programming distributors offering service address on the form. to at least 50 percent of the households in a franchise area will be aggregated to determine whether at least 15 percent of the • 4. A copy of the form must be served on the cable operator by first-class households in the franchise area are served by competitors. A mail on or before the date the form is sent or delivered to the FCC. multichannel video programming distributor must offer at least 12 channels of programming, at least one channel of which is 5. The franchising authority's certification will become effective 30 days nonbroadcast,to be found to offer"comparable"video programming. after the date stamped Qa,the_postal return receipt unless otherwise notified by the Commission by that date. The franchising authority 11. This certification form must be signed by a government official with cannot begin to regulate rates, however,until it has actually adopted authority to act on behalf of the franchising authority. the required regulations(see below)and until it has notified the cable operator that it has been certified and that it has adopted the required regulations. FCC NOTICE TO INDIVIDUALS REQUIRED BY THE PRIVACY ACT AND THE PAPERWORK 6. In order to be certified, franchising authorities must answer"yes" to REDUCTION ACT Questions 3,4, and 5, which are explained as follows: The solicitation of personal information in this forrn is authorized by the Communications Act of t934,zs amended. The Comm sion will use the information provided in this form to determine 7. Question 3: The franchising authority must adopt rate regulations if the franchise authority should be authorized to regulate cable rates. In reaching that consistent with the Commission's regulations for basic cable service, determination, or for law enforcement purposes, it may become necessary to refer personal information contained in this form to another government agency. All information provided in this To fulfill this requirement for certification, the franchising authority form will be available for public inspection. Your response is required to obtain the requested may simply adopt a regulation indicating that it will follow the authority. regulations established by the FCC. Public reporting burden for this collection of information is estimated to average 3r,minutes, including the time for reviewing instructions, searching existing data sources, gathering and The franchising authority has 120 days to adopt these regulations rnainlainmg the data needed,and completing and reviewing the collection of information Send after the time it is certified. The franchising authority may not, comments regarding this burden estimate or any other aspect of this collection of information, however,begin to regulate cable rates until after it has adopted these including suggestions for reducing the burden,to the I-ecteral Communications Commission,Records regulations and until it has notified the cable o erator that it has been Management Division,AMOYIRS.Washington,D.C. 20554,and to the Orrice of Management p and Budget,Paperwork Reduction Project(3060-0550),Washington,D.C. 20503. certified and has adopted the required regulations. THE FOREGOING NOTICE IS REQUIRED BY THE PRIVACY ACT OF 1974, P.l. 93.579, 8. Question 4(a):The franchising authority's"legal authority"to regulate DECEMBER 31,1975,S U.S.C.S72alc)(31 AND THE PAPERWORK REDUCTION ACT OF 1960, basic service must come from state law. Jn some states. only the P.L 94511,DECEMBER 11,1960,44 U.S. 6507, stale-gaYS11113211L may regulate cable fates. In those states, the state government should file this certification. Provisions in franchise agreements that prohibit rate regulation are void,and do not prevent a franchising authority from regulating the basic service tier and associated equipment. •