Federal Register / Vol. 66, No. 249 / Friday, December 28, 2001 / Rules and Regulations 67115

FEDERAL COMMUNICATIONS

COMMISSION

47 CFR Part 76

[CS Docket No. 98–132; FCC 01–314]

1998 Biennial Review—Multichannel

Video and Cable Television Service

AGENCY: Federal Communications

Commission.

ACTION: Final rule and clarifications.

SUMMARY: In this document we adopt a

Commission rule which provides a

limited exception for cable operators

with 1000 or more, but fewer than 5000,

subscribers. Specifically, such cable

systems are relieved from certain

recordkeeping requirements associated

with maintaining the public file,

requiring public file information to be

provided only upon request. This action

was taken in response to the

Commission’s 1998 biennial review of

the public file and notice requirements

concerning cable television. This

document also makes a number of

clarifications to various part 76 rules.

DATES: Effective January 28, 2002.

ADDRESSES: Federal Communications

Commission, Office of the Secretary,

445 12th Street, SW, Room TW–A–325,

Washington, DC 20554.

FOR FURTHER INFORMATION CONTACT:

Sonia Greenaway-Mickle, Cable

Services Bureau, (202) 418–1419.

SUPPLEMENTARY INFORMATION: This is a

summary of the Commission’s Second

Report and Order (‘‘Second Order’’),

FCC 01–314, adopted October 22, 2001;

released October 31, 2001. The full text

of the Commission’s Order is available

for inspection and copying during

normal business hours in the FCC

Reference Center (Room CY–A257) at its

headquarters, 445 12th Street, SW,

Washington, DC 20554, or may be

purchased from the Commission’s copy

contractor, International Transcription

Service, Inc., (202) 857–3800, 1231 20th

Street, NW, Washington, DC 20036, or

may be reviewed via internet at http://

www.fcc.gov/csb/.

Synopsis of the Second Report and

Order

1. In this 1998 Biennial Review—

Streamlining of Cable Television Service

Part 76 Public File and Notice: Second

Report and Order, the Commission

addresses portions of part 76 of the

cable television rules pertaining to the

public file, notice, recordkeeping, and

reporting requirements. First, we

reinstate, as a final rule, § 76.1700(a).

Second, the Commission clarifies

certain provisions in the part 76 rules in

order to more clearly set forth the

compliance requirements and regulatory

process for cable operators, franchising

authorities, and the public. Finally, we

make non-substantive rule changes to

correct errors in the publication of part

76 of the Commission’s rules. With this

action, we complete the Commission’s

biennial review of the public file and

notice requirements applicable to cable

operators under part 76 of the

Commission’s rules.

2. The part 76 cable television rules

contained numerous public file, notice,

recordkeeping, and reporting

requirements scattered throughout part

76. In connection with the 1998

Biennial Regulatory Review—

Streamlining of Cable Television

Services Part 76 Public File and Notice

Requirements, Report and Order, the

Commission revised and streamlined

the public file and notice requirements

set forth in the Commission’s part 76

cable television rules. The Notice of

Proposed Rulemaking in this

proceeding, however, inadvertently was

not published in the Federal Register.

Because the rule changes adopted were

deemed to be primarily procedural in

nature, the failure of Federal Register

notice was determined not to impair

their effectiveness. In this regard,

§ 1.412(b)(5) of the Commission’s rules,

provides that rules involving

Commission organization, procedure, or

practice are exempt from the

requirement of prior notice by

publication in the Federal Register.

Section 76.1700(a), however, was

determined to alter the substantive

public file requirements for a subset of

cable operators and to be subject to the

prior public notice requirement. Section

76.1700(a) was published subsequently

in the Federal Register (65 FR 53610)

Sept. 5, 2000, as an ‘‘interim rule,’’ and

interested parties were afforded an

opportunity to comment upon it. No

comments were filed.

In this proceeding, we adopt

§ 76.1700(a) as a final rule.

3. Part 76 rule clarification. We now

consider on our own motion, specific

rules adopted in part 76 relating to the

public file, notice, recordkeeping, and

reporting requirements requiring

clarification.

4. Section 76.1700(a), entitled,

‘‘Records To Be Maintained Locally By

Cable System Operators,’’ provides, in

part, that cable operators having 1000 or

more subscribers but fewer than 5000

subscribers shall, upon request, make

public file information available. This

provision gives such operators an

alternative to maintaining paper files

and increases flexibility in complying

with the public file maintenance

requirements and responding to

information requests. Since operators

meeting this particular subscriber

requirement must produce public file

information only upon request, records

need not be maintained at a particular

local site, provided they are made

promptly available once a request is

received. Therefore, we clarify the title

of § 76.1700 to be more consistent with

this particular aspect of the rule. We

delete the word ‘‘locally’’ from the title

to more accurately depict the fact that

records need not be maintained locally

where the cable system operator meets

the specified subscriber limits, so long

as the information can be made

available ‘‘upon request;’’ access should

not be delayed. Although the title of the

rule section changes, with regard to

those cable operators that have 5000 or

more subscribers and that are required

to maintain a public inspection file, we

reiterate that documents required to be

included in the public inspection file

must be available, readily accessible and

sited locally.

5. In the Report and Order (65 FR

53610) Sept. 5, 2000, we concluded that

the Commission would maintain the

exemption for small systems serving

fewer than 1000 subscribers from the

recordkeeping requirements contained

in former § 76.305(a), which is

redesignated as § 76.1700(a). Therefore,

we clarify that § 76.1700(a) totally

exempts systems serving fewer than

1000 subscribers from the Commission’s

recordkeeping requirements contained

in §§ 76.1701 (political file); 76.1715

(sponsorship identification); 76.1702

(equal employment opportunity);

76.1703 (commercial records for

children’s programming); 76.1704

(proof-of-performance tests data); and

76.1706 (signal leakage logs and repair

records). These records do not need to

be maintained or produced by systems

meeting the subscriber limitation.

6. Section 76.1705 provides that each

cable system is required to maintain at

its local office a current listing of the

cable television channels that the

system delivers to its subscribers.

Although the rule states that channel

listing information should be

maintained, no mention is made of

exactly where such lists should be

located at the local office. In

implementing this provision, the

Commission stated that such

information would be useful to

consumers. To the extent necessary, we

clarify that the operator of each cable

television system subject to the public

file requirements of § 76.1700(a) shall

maintain as part of its public inspection

file a current list of the cable television

channels that the system delivers to its

67116 Federal Register / Vol. 66, No. 249 / Friday, December 28, 2001 / Rules and Regulations

subscribers. Cable operators that are

exempt from the public file requirement

shall maintain the channel lineup

information in a location that is readily

accessible by the general public.

7. Section 76.1715 requires that

whenever sponsorship announcements

are omitted, the cable system operator

must maintain for public inspection a

file listing the name, address, and

telephone number of the advertiser of

the commercial announcement. The

length of time that such information

should be retained is not provided.

However, pursuant to § 73.1212, a

similar collection of information from

broadcast stations is required whenever

sponsorship announcements are

omitted. In the broadcast context such

advertiser information must be retained

for a period of two years from the date

of broadcast. We interpret § 76.1715 in

this Second Order to operate

consistently with § 73.1212. Provided

that it retains the required advertiser

information for a period of at least two

years after the airing of the commercial

announcement, a cable operator will be

in compliance with the record retention

requirement of § 76.1715. This

interpretation will ensure that operators

have notice of their responsibilities

regarding sponsorship announcement

recordkeeping while accommodating

the public by ensuring access to such

information for an adequate period of

time.

Final Regulatory Flexibility Analysis

8. As required by section 603 of the

Regulatory Flexibility Act (‘‘RFA’’), the

Commission incorporated an Initial

Regulatory Flexibility Analysis

(‘‘IRFA’’) into its Report and Order. The

Commission sought written public

comments on the possible impact of the

proposed rule on small entities,

including comments on the IRFA. This

Final Regulatory Flexibility Analysis

(‘‘FRFA’’) incorporated into the Second

Report and Order (‘‘Second Order’’)

conforms to the RFA.

9. Need for, and Objectives of, the

Second Report and Order. The

Commission adopted the 1998 Biennial

Regulatory Review—Streamlining of

Cable Television Services Part 76 Public

File and Notice Requirements, Report

and Order (‘‘Report and Order’’)

pursuant to Section 11 of the 1996

Telecommunications Act which

requires the Commission to conduct a

biennial review of regulations that apply

to operations and activities of any

provider of telecommunications service

and to repeal or modify any regulation

it determines to be no longer in the

public interest. Section 76.1700(a) was

determined to alter the substantive

public file requirements for a subset of

cable operators and to be subject to the

prior public notice requirement. Section

76.1700(a) was published subsequently

in the Federal Register (65 FR 53610)

Sept. 5, 2000, as an interim rule and

interested parties were afforded an

opportunity to comment upon it. No

comments were filed. The Second Order

reinstates § 76.1700(a).

10. Summary of Significant Issues

Raised by Public Comments in Response

to the IRFA. No comments were filed

specifically in response to the IRFA.

11. Description and Estimate of the

Number of Small Entities To Which the

Rule Applies. 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 rule here adopted. The RFA defines

the term ‘‘small entity’’ as having the

same meaning as the terms ‘‘small

business,’’ ‘‘small organization,’’ and

‘‘small governmental jurisdiction’’

under Section 3 of 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

Small Business Administration.

12. The Second Order adopts

§ 76.1700(a), a rule that applies to cable

operators with 1000 or more, but fewer

than 5000, subscribers. The SBA has

developed a definition of small entities

for cable and other pay television

services, which includes all such

companies generating $11 million or

less in revenue annually. This definition

includes cable systems operators, closed

circuit television services, direct

broadcast satellite services, multipoint

distribution systems, satellite master

antenna systems, and subscription

television services. According to the

Census Bureau data from 1992, there

were 1,788 total cable and other pay

television services and 1,423 had less

than $11 million in revenue.

13. The Communications Act of 1934,

as amended, also contains a definition

of a small cable system operator, which

is ‘‘a cable operator that, directly or

through an affiliate, serves in the

aggregate fewer than 1 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 subscribers in the United

States. Therefore, we estimate that 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 its affiliates, do not

exceed $250 million in the aggregate.

Based on available data, we estimate

that the number of cable operators

serving 677,000 subscribers or less totals

1,450. We do not request nor collect

information on whether cable system

operators are affiliated with entities

whose gross annual revenues exceed

$250,000,000, and therefore are unable

at this time to estimate more accurately

the number of cable system operators

that would qualify as small cable

operators under the definition in the

Communications Act.

14. Description of Projected

Reporting, Recordkeeping, and Other

Compliance Requirements. Section

76.1700(a), adopted in the Second

Order, will not increase the

recordkeeping or information collection

requirements for any cable operator. In

fact, § 76.1700(a) will decrease certain

recordkeeping requirements for cable

operators with 1000 or more, but fewer

than 5000, subscribers. The rule as

adopted eliminates the requirement that

cable operators with 1000 or more, but

less than 5000, subscribers maintain

certain records in their public file. The

rule provides that those records need

only be provided pursuant to a specific

request. Thus, the adopted rule will

result in reductions in administrative

costs borne by cable operators in

connection with reproducing and

maintaining certain records in their

public files.

15. Steps taken to Minimize

Significant Economic Impact on Small

Entities and Significant Alternatives

Considered. The RFA requires an

agency to describe any significant

alternatives that it has considered in

reaching its proposed approach, which

may include the following four

alternatives: (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 or reporting requirements

under the rule for 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 small entities. We are adopting a rule

that establishes reduced regulatory

burdens on small entities with regard to

certain recordkeeping requirements. In

addition, we sought comment on the

proposed rule to ease the recordkeeping

requirements for certain small cable

operators. No comments were received

and we are aware of no alternatives to

further reduce burdens on small entities

consistent with the important regulatory

objectives served by the reporting

requirements.

Federal Register / Vol. 66, No. 249 / Friday, December 28, 2001 / Rules and Regulations 67117

16. Report to Congress. The

Commission will send a copy of the

Second Order, including this FRFA, in

a report to Congress pursuant to the

Small Business Regulatory Enforcement

Fairness Act of 1996, 5 U.S.C.

801(a)(1)(A). The Second Order and this

FRFA (or summaries thereof) will also

be published in the Federal Register,

see 5 U.S.C. 604(b), and will be sent to

the Chief Counsel for Advocacy of the

Small Business Administration.

Paperwork Reduction Act

This Second Order has been analyzed

with respect to the Paperwork

Reduction Act of 1995 (the ‘‘1995 Act’’)

and does not impose new or modified

information collection requirements on

the public.

OMB Approval Number: 3060–0981.

Title: 1998 Biennial Regulatory

Review ‘‘ Streamlining of Cable

Television Services Part 76 Public File

and Notice Requirements, Second

Report and Order.

Type of Review: None.

Respondents: Businesses or other forprofit entities.

Needs and Uses: The Commission

adopted the Report and Order pursuant

to Section 11 of the 1996

Telecommunications Act which

requires the Commission to conduct a

biennial review of regulations that apply

to operations and activities of any

provider of telecommunications service

and to repeal or modify any regulation

it determines to be no longer in the

public interest. Although Section 11

does not specifically refer to cable

operators, the Commission has

determined that the first biennial review

presented an excellent opportunity for a

thorough examination of all of the

Commission’s regulations. The initial

NPRM in this proceeding was not

published in the Federal Register. The

Commission found that, with the

exception of one provision, the rules

adopted in the Report and Order are

procedural in nature and subject to the

prior notice exemption contained in

§ 1.412(b)(5) of the Commission’s rules.

The Federal Register notice provided

notice of § 76.1700(a), adopted as an

interim rule and provided interested

parties the opportunity to comment.

List of Subjects in 47 CFR Part 76

Multichannel video and cable

television service.

Federal Communications Commission.

Magalie Roman Salas,

Secretary.

For the reasons discussed in the

preamble, the Federal Communications

Commission amends 47 CFR part 76 as

follows:

PART 76—MULTICHANNEL VIDEO

AND CABLE TELEVISION SERVICE

1. The authority citation for Part 76

continues to read as follows:

Authority: 47 U.S.C. 151, 152, 153, 154,

301, 302, 303, 303a, 307, 308, 309, 312, 315,

317, 325, 338, 339, 503, 521, 522, 531, 532,

533, 534, 535, 536, 537, 543, 544, 544a, 545,

548, 549, 552, 554, 556, 558, 560, 561, 571,

572, 573.

2. Section 76.1700 is amended by

revising the section heading and the

introductory text of paragraph (a) to

read as follows:

§ 76.1700 Records to be maintained by

cable system operators.

(a) Recordkeeping requirements. The

operator of every cable television system

having fewer than 1,000 subscribers is

exempt from the public inspection

requirements contained in § 76.1701

(political file); § 76.1715 (sponsorship

identification); § 76.1702 (EEO records

available for public inspection);

§ 76.1703 (commercial records for

children’s programming); § 76.1704

(proof-of-performance test data); and

§ 76.1706 (signal leakage logs and repair

records). The operator of every cable

television system having 1000 or more

subscribers but fewer than 5000

subscribers shall, upon request, provide

the information required by § 76.1715

(sponsorship identification); § 76.1702

(EEO records available for public

inspection); § 76.1703 (commercial

records for children’s programming);

§ 76.1704 (proof-of-performance test

data); and § 76.1706 (signal leakage logs

and repair records) but shall maintain

for public inspection a file containing a

copy of all records required to be kept

by § 76.1701 (political file). The

operator of every cable television system

having 5000 or more subscribers shall

maintain for public inspection a file

containing a copy of all records which

are required to be kept by § 76.1701

(political file); § 76.1715 (sponsorship

identification); § 76.1702 (EEO records

available for public inspection);

§ 76.1703 (commercial records for

children’s programming); § 76.1704

(proof-of-performance test data); and

§ 76.1706 (signal leakage logs and repair

records).

* * * * *

[FR Doc. 01–31869 Filed 12–27–01; 8:45 am]

BILLING CODE 6712–01–P

DEPARTMENT OF TRANSPORTATION

Office of the Secretary of

Transportation

49 CFR Part 1

[Docket No. OST–1999–6189]

RIN 2105–ZZ04

Organization and Delegation of Powers

and Duties to the Under Secretary of

Transportation for Security,

Transportation Security Administration

AGENCY: Office of the Secretary, DOT.

ACTION: Final rule.

SUMMARY: A new operating

administration, the Transportation

Security Administration (TSA), headed

by the Under Secretary of

Transportation for Security, was

established within the United States

Department of Transportation (DOT)

pursuant to the Aviation and

Transportation Security Act [Public Law

107–71 (November 19, 2001)].

Accordingly, by this action, the

Secretary of Transportation (Secretary)

amends Part 1 of title 49, Code of

Federal Regulations, to reflect this new

DOT operating administration and its

general responsibilities.

EFFECTIVE DATE: This Final Rule is

effective on December 28, 2001.

FOR FURTHER INFORMATION CONTACT:

Steven Cohen, Office of the General

Counsel, Office of Environmental, Civil

Rights, and General Law, Department of

Transportation (C–10), 400 Seventh

Street, SW., Room 10101, Washington,

DC 20590, (202) 366–4684 (voice), (202)

366–9170 (fax) (202) 755–7687 (TDD).

SUPPLEMENTARY INFORMATION:

Electronic Access

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