Sec.  76.504   Limits on carriage of vertically integrated programming.

   (a) Except as otherwise provided in this section no cable operator shall
   devote more than 40 percent of its activated channels to the carriage of
   national video programming services owned by the cable operator or in which
   the cable operator has an attributable interest.

   (b) The channel occupancy limits set forth in paragraph (a) of this section
   shall apply only to channel capacity up to 75 channels.

   (c) A cable operator may devote two additional channels or up to 45 percent
   of its channel capacity, whichever is greater, to the carriage of video
   programming services owned by the cable operator or in which the cable
   operator has an attributable interest provided such video programming
   services are minority-controlled.

   (d) Cable operators carrying video programming services owned by the cable
   operator or in which the cable operator holds an attributable interest in
   excess of limits set forth in paragraph (a) of this section as of December
   4, 1992, shall not be precluded by the restrictions in this section.

   (e) Minority-controlled means more than 50 percent owned by one or more
   members of a minority group.

   (f) Minority means Black, Hispanic, American Indian, Alaska Native, Asian
   and Pacific Islander.

   Note 1: Attributable interest shall be defined by reference to the criteria
   set forth in Notes 1 through 5 to  Sec. 76.501 provided however, that:

   (a) Notes 2(f) and 2(g) to  Sec. 76.501 to shall not apply;

   (b)(1) Subject to Note 2(i) to  Sec. 76.501, a limited partnership interest shall
   be attributed to a limited partner unless that partner is not materially
   involved, directly or indirectly, in the management or operation of the
   video programming-related activities of the partnership and the relevant
   entity so certifies. An interest in a Limited Liability Company (“LLC”) or
   Registered Limited Liability Partnership (“RLLP”) shall be attributed to the
   interest holder unless that interest holder is not materially involved,
   directly or indirectly, in the management or operation of the video
   programming-related activities of the partnership and the relevant entity so
   certifies.

   (2) In the case of a limited partnership, in order for an entity to make the
   certification set forth in paragraph (b)(1) of this section, it must verify
   that the partnership agreement or certificate of limited partnership, with
   respect to the particular limited partner exempt from attribution,
   establishes that the exempt limited partner has no material involvement,
   directly or indirectly, in the management or operation of the video
   programming activities of the partnership. In the case of an LLC or RLLP, in
   order for an entity to make the certification set forth in paragraph (g)(1)
   of this section, it must verify that the organizational document, with
   respect to the particular interest holder exempt from attribution,
   establishes that the exempt interest holder has no material involvement,
   directly or indirectly, in the management or operation of the video
   programming activities of the LLC or RLLP. The criteria which would assume
   adequate insulation for purposes of these certifications are described in
   the Report and Order, FCC No. 99–288, CS Docket No. 98–82 (released October
   20, 1999). In order for the Commission to accept the certification, the
   certification must be accompanied by facts, e.g. in the form of documents,
   affidavits or declarations, that demonstrate that these insulation criteria
   are met. Irrespective of the terms of the certificate of limited partnership
   or partnership agreement, or other organizational document in the case of an
   LLC or RLLP, however, no such certification shall be made if the individual
   or entity making the certification has actual knowledge of any material
   involvement of the limited partners, or other interest holders in the case
   of an LLC or RLLP, in the management or operation of the video-programming
   activities of the partnership or LLC or RLLP.

   (3) In the case of an LLC or RLLP, the entity seeking insulation shall
   certify, in addition, that the relevant state statute authorizing LLCs
   permits an LLC member to insulate itself as required by our criteria.

   (c) Officers and directors of an entity covered by this rule are considered
   to have a cognizable interest in the entity with which they are so
   associated. If any such entity engages in activities other than
   video-programming activities, it may request the Commission to waive
   attribution for any officer or director whose duties and responsibilities
   are wholly unrelated to the entity's video-programming activities. In the
   case of common or appointed directors and officers, if common or appointed
   directors or officers have duties and responsibilities that are wholly
   unrelated to video-programming activities for both entities, the relevant
   entity may request the Commission to waive attribution of the director or
   officer. The officers and directors of a parent company of a
   video-programming business, with an attributable interest in any such
   subsidiary entity, shall be deemed to have a cognizable interest in the
   subsidiary unless the duties and responsibilities of the officer or director
   involved are wholly unrelated to the video-programming subsidiary, and a
   certification properly documenting this fact is submitted to the Commission.
   The officers and directors of a sister corporation of a cable system shall
   not be attributed with ownership of that entity by virtue of such status.

   Note 2 to  Sec. 76.504: Section 76.1710 contains recordkeeping requirements for
   cable operators with regard to attributable interests.

   [ 58 FR 60141 , Nov. 15, 1993, as amended at  64 FR 67196 , Dec. 1, 1999;  65 FR 53615 , Sept. 5, 2000]