Sec.  76.990   Small cable operators.

   (a) Effective February 8, 1996, a small cable operator is exempt from rate
   regulation on its cable programming services tier, or on its basic service
   tier if that tier was the only service tier subject to rate regulation as of
   December 31, 1994, in any franchise area in which that operator services
   50,000 or fewer subscribers.

   (b) Procedures. (1) A small cable operator, may certify in writing to its
   franchise authority at any time that it meets all criteria necessary to
   qualify as a small operator. Upon request of the local franchising
   authority, the operator shall identify in writing all of its affiliates that
   provide cable service, the total subscriber base of itself and each
   affiliate, and the aggregate gross revenues of its cable and non-cable
   affiliates. Within 90 days of receiving the original certification, the
   local franchising authority shall determine whether the operator qualifies
   for deregulation and shall notify the operator in writing of its decision,
   although this 90-day period shall be tolled for so long as it takes the
   operator to respond to a proper request for information by the local
   franchising authority. An operator may appeal to the Commission a local
   franchise authority's information request if the operator seeks to challenge
   the information request as unduly or unreasonably burdensome. If the local
   franchising authority finds that the operator does not qualify for
   deregulation, its notice shall state the grounds for that decision. The
   operator may appeal the local franchising authority's decision to the
   Commission within 30 days.

   (2) Once the operator has certified its eligibility for deregulation on the
   basic service tier, the local franchising authority shall not prohibit the
   operator from taking a rate increase and shall not order the operator to
   make any refunds unless and until the local franchising authority has
   rejected the certification in a final order that is no longer subject to
   appeal or that the Commission has affirmed. The operator shall be liable for
   refunds for revenues gained (beyond revenues that could be gained under
   regulation) as a result of any rate increase taken during the period in
   which it claimed to be deregulated, plus interest, in the event the operator
   is later found not to be deregulated. The one-year limitation on refund
   liability will not be applicable during that period to ensure that the
   filing of an invalid small operator certification does not reduce any refund
   liability that the operator would otherwise incur.

   (3) Within 30 days of being served with a local franchising authority's
   notice that the local franchising authority intends to file a cable
   programming services tier rate complaint, an operator may certify to the
   local franchising authority that it meets the criteria for qualification as
   a small cable operator. This certification shall be filed in accordance with
   the cable programming services rate complaint procedure set forth in
    Sec. 76.1402. Absent a cable programming services rate complaint, the operator
   may request a declaration of CPST rate deregulation from the Commission
   pursuant to  Sec. 76.7.

   (c) Transition from small cable operator status. If a small cable operator
   subsequently becomes ineligible for small operator status, the operator will
   become subject to regulation but may maintain the rates it charged prior to
   losing small cable operator status if such rates (with an allowance for
   minor variations) were in effect for the three months preceding the loss of
   small cable operator status. Subsequent rate increases following the loss of
   small cable operator status will be subject to generally applicable
   regulations governing rate increases.

   Note to  Sec. 76.990: For rules governing small cable systems and small cable
   companies, see  Sec. 76.934.

   [ 64 FR 35951 , July 2, 1999]

Subpart O—Competitive Access to Cable Programming