From: tweek@netcom.com (Michael D. Maxfield)
Subject: S-12  part 3/?
Date: Fri, 28 Aug 92 19:52:46 GMT
Organization: Movement to Ban or Re-Regulate the CABLE MONOPOLIES
Distribution: usa


(part 3 of ?)

REGULATION OF CABLE RATES

SEC. 5. Section 623 of the Communications Act of
1934 (47 U.S.C. 543) is amended to read as follows:

"REGULATION OF RATES

"SEC. 623. (a) Any Federal agency, State, or franchising
authority may not regulate the rates for the provision 
of cable service, or for the installation, or rental of
equipment used for the receipt of cable service, except to
the extent provided under this section and section 612.
Any franchising authority may regulate the rates for the
provision of cable service, or any other communications
service provided over a cable system to cable subscribers,
by only to the extent provided under this section.

"(b)(1) If the Commission finds that a cable system
is not subject to effective competition, the Commission
shall ensure that the rates for the provision of basic cable
service, including for the installation or rental of equipment
used for the receipt of basic cable service, or charges
for changes in service tiers, are reasonable; except that
if fewer than 30 percent of all customers to that cable
system subscribe only to basic service, the Commission
also shall ensure that the rates are reasonable for the
lowest-priced tier of service subscribed to by at least 30
percent of the cable systems customers.


"(2)(A) Upon written request by a franchising authority,
the Commission shall review the State and local
laws and regulations governing the regulation of rates of
cable systems under the juristiction of such franchising
authority.  The Commission shall authorize such franchising
authority to carry out such regulation pursuant to
paragraph (1) in lieu of the Commission if the Commission
finds that---

"(i) such State and local laws and regulations
conform to the procedures, standards, requirements,
and guidelines prescribed under paragraph (4) and
any interpretive rulings, decisions, and orders of
the Commission that relate to rate regulation under
this subsection; and

"(ii) such franchising authority will provide the
level of protection to consumers required by the
Commission and that carries out the national policy
established in this title.

"(B) Upon petition by a cable operator or other interested
party, the Commission shall review such regulation
of cable system rates by a franchising authority authorized
under this paragraph.  If the Commission finds that the
franchising authority has acted inconsistently with the
requirements in subparagraph (A), the Commission shall
grant appropriate relief.  If the Commission, after the
franchising authority has had a reasonable opportunity to
comment, determines that the State and local laws and
regulations are not in conformance with subparagraph
(A)(i) or (ii), the Commission shall revoke such
authorization.

"(3) A cable operator may add to or delete from a
basic cable service tier any video programming other than
retransmitted local television broadcast signals.  Any
obligation imposed by operation of law inconsistent with this
subsection is preempted and may not be enforced.

"(4) Within 120 days after the date of enactment of
the Cable Television Consumer Protection Act of 1992,
the Commission shall prescribe by rule procedures, 
standards, requirements, and guidelines for the establishment
of reasonable rates charged for basic cable service by a
cable operator not subject to effective competition.

"(5) A cable operator may file with the Commission,
or with a franchising authority authorized by the Commission
under paragraph (2) to regulate rates, a request for
a rate increase in the price of a basic cable service tier.
Any such request upon which final action is not taken
within 180 days after such request shall be deemed
granted.

"(e)(1) When a franchising authority or a subscriber
of any cable system found by the Commission not to be
subject to effective competition files, within a reasonable
time after a rate increase for cable programming service
of that system, including an increase which results from
a change in that system's service tiers or from a change
in the per channel rate paid by subscribers for a particular
video programming service, a complaint which establishes
a prima facie case that rates for such cable programming
service are unreasonable based on the criteria established
by the Commission, the Commission shall determine
whether such rates for cable programming service are
unreasonable.  In making its determination, the Commission
shall inquire of the cable operator of such system as to
the reasons for such rates.  If the Commission finds that
such rates cannot be justified under reasonable business
practices, the Commission shall establish reasonable rates.

"(2) Within 180 days after the date of enactment of
the Cable Television Consumer Protection Act of 1992,
the Commission shall prescribe by rule---

"(A) the criteria for determining whether rates
for cable programming service are reasonable, and

"(B) criteria for determining that (i) a complaint
described under paragraph (1) is filed within
a reasonable period after a rate increase and (ii) the
compaint establishes a prima facia case that rates
for cable programming service are unreasonable.

"(3) In establishing the criteria for determining
whether rates for cable programming service are 
unreasonable pursuant to paragraph (2)(A), the Commission
shall consider, among other factors---

"(A) the extent to which service offerings are
offered on an unbundled basis;

"(B) rates for similarly situated cable systems
offering comparable services, taking into account,
among other factors, similarities in facilities, 
regulatory and governmental costs, and number of
subscribers;

"(C) the history of rates for such service
offerings of the system;

"(D) the rates for all cable programming service
offerings taken as a whole; and

"(E) the rates for such service offerings
charged by cable systems subject to effective
competition as defined in subsection (d).

"(d) Under this section, a cable system shall be
presumed to be subject to effective competition if---

"(1) fewer than 30 percent of the households in
the cable community subscribe to the cable service of
such cable system; or

"(2) the cable community is served by a sufficient
number of local television broadcast signals
and by more than one multichannel video programming
distributor.

For purposes of paragraph (2), a cable community shall
be considered as served by more than one multichannel
video programming distributor if (A) comparable video
programming is available at comparable rates to at least
a majority of the households in the cable community from
a competing cable operator, multichannel multipoint
distribution service, direct broadcast satellite program
distributor, television recieve-only satellite program
distributor, or other competing multichannel video programming
distributor, and (B) the number of households subscribing
to programming services offered by such competing
multichannel video programming distributor, or by a
combination of such distributors, is in the aggregate at least
15 percent of the households in the cable community.  No
competing multichannel video programming distributor
serving households in a cable community which, directly
or indirectly, is owned or controlled by, or, affiliated
through substantial common ownership with, the cable
system in that cable community, shall be included in any
determination regarding effective competition under this
subsection.

"(e) A cable operator shall have a rate structure, for
the provision of cable service, that is uniform throughout
the geographic area in which cable service is provided over
its cable system.

"(f) Nothing in this title shall be construed as forbidding
any Federal agency, State, or franchising authority
from---

"(1) prohibiting discrimination among customers
of cable service; or

"(2) requiring and regulating the installation or
rental of equipment which facilitaes the reception of
cable service by hearing-impaired individuals.

"(g) For purposes of this section, the term `cable
programming service' means all video programming services,
including installation or rental of equipment not used for
the receipt of basic cable service, regardless of service tier,
offered over a cable system except basic cable service and
those services offered on a per channel or per program
basis.

"(h) Whithin 120 days of enactment of this subsection,
the Commission shall, by regulation, establish standards,
guidelines, and procedures to prevent evasions of the
rates, services, and other requirements of this section.".



********************** END OF PART 3 of ? *****************


Newsgroups: alt.cable-tv.re-regulate