[Federal Register Volume 64, Number 230 (Wednesday, December 1, 1999)]
[Rules and Regulations]
[Pages 67193-67197]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-31023]
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FEDERAL COMMUNICATIONS COMMISSION
47 CFR Part 76
[CS Docket No. 98-82; CS Docket No. 96-85; FCC 99-288]
Cable Television Consumer Protection and Competition Act of 1992;
Cable Act Reform Provision of the Telecommunications Act of 1996:
Review of the Commission's Cable Attribution Rules
AGENCY: Federal Communications Commission.
ACTION: Final rule.
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SUMMARY: This document adopts amendments to the cable attribution and
affiliation rules, which determine whether an entity is subject to the
Commission's cable regulations, in order to more accurately identify
interests that confer on their holders the ability to influence or
control the operations of a held entity or create the type of economic
incentives that the Commission's rules relating to the provision of
cable television services are designed to address.
DATES: Effective February 9, 2000, following OMB approval, unless a
notice is published in the Federal Register stating otherwise.
Written comments by the public on the new and/or modified
information collections are due January 31, 2000.
ADDRESSES: In addition to filing comments with the Office of the
Secretary, a copy of any comments on the information collection(s)
contained herein should be submitted to Judy Boley, Federal
Communications Commission, Room 1-C804, 445 12th Street, SW,
Washington, DC 20554, or via the Internet to jboley@fcc.gov.
FOR FURTHER INFORMATION CONTACT: Darryl Cooper at (202) 418-7200 or via
Internet at dacooper@fcc.gov. For additional information concerning the
information collection(s) contained in this document, contact Judy
Boley at 202-418-0214, or via the Internet at jboley@fcc.gov.
SUPPLMENTARY INFORMATION: This is a synopsis of the Commission's Report
and Order, FCC 99-288, adopted on October 8, 1999 and released October
20, 1999. The full text of this decision is available for inspection
and copying during normal business hours in the FCC Reference Center,
445 12th Street, SW, Washington, DC 20554, or may be purchased from the
Commission's copy contractor, International Transcription Service
(``ITS''), (202) 857-3800, 1231 20th Street, NW, Washington, DC 20036,
or may be reviewed via internet at http://www.fcc.gov/Bureaus/Cable/
WWW/csb.html. For copies in alternative formats, such as braille, audio
cassette or large print, please contact Sheila Ray at ITS.
This Report and Order contains new or modified information
collection(s) subject to the Paperwork Reduction Act of 1995 (PRA),
Public Law 104-13. It will be submitted to the Office of Management and
Budget (OMB) for review under Section 3507(d) of the PRA. OMB, the
general public, and other Federal agencies are invited to comment on
the new or modified information collection(s) contained in this
proceeding.
Paperwork Reduction Act
This Report and Order contains either a new or modified information
collection. The Commission, as part of its continuing effort to reduce
paperwork burdens, invites the general public to comment on the
information collection(s) contained in this Report and Order as
required by the Paperwork Reduction Act of 1995, Public Law 104-13.
Public and agency comments are due January 31, 2000. Comments should
address: (a) whether the new or modified collection of information is
necessary for the proper performance of the functions of the
Commission, including whether the information shall have practical
utility; (b) the accuracy of the Commission's burden estimates; (c)
ways to enhance the quality, utility, and clarity of the information
collected; and (d) ways to minimize the burden of the collection of
information on the respondents, including the use of automated
collection techniques or other forms of information technology.
OMB Control Number: 3060-XXXX.
Title: Cable Attribution Rules.
Form No.: Not applicable.
Type of Review: New collection.
Respondents: Business or other for-profit.
Number of Respondents: 20.
Estimated Time per Response: 4 hours.
Total Annual Burden: 80 hours.
Cost to Respondents: $3200.
Needs and Uses: Filings will be used by the Commission to determine
the nature of the corporate, financial, partnership, ownership and
other business relationships that confer on their holders a degree of
ownership or other economic interest, or influence or control over an
entity engaged in the provision of communications services such that
the holders are subject to the Commission's regulations.
Synopsis of Report and Order
1. The Commission's Report and Order amends the Commission's cable
attribution and affiliation rules to more accurately identify interests
that confer on their holders the ability to influence the operations of
the held entity such that the holders should be subject to the cable
rules.
2. Key Decisions:
The Report and Order maintains the 5% voting equity
attribution standard and adopts this standard for the Commission's
cable-telco buyout prohibition rule, cable/SMATV cross-ownership rule,
and the competing provider prong of the effective competition test. 47
CFR 76.505, 76.501(d), 76.905(h).
The Report and Order raises the passive institutional
investor threshold from 10% to 20%.
The Report and Order eliminates the cable attribution
rule's single majority shareholder exemption.
The Report and Order attributes nonvoting equity and debt
where an investor's interest is greater than 33% of a company's total
assets, which is the sum of all equity and debt. This equity debt rule
will also act as an exemption to the insulated limited partner
exception.
For the horizontal ownership and channel occupancy rules,
47 CFR 503, 504, the Report and Order narrowly tailors the insulated
limited partnership criteria to permit a limited partner to insulate
its interest so long as the limited partner is not involved in the
video-programming activities of the partnership. In addition, for these
two rules, the Report and Order permits interlocking and appointed
directors and officers to petition the Commission for a waiver from
attribution where the directors and officers are not involved in the
video-programming activities of either company.
The Report and Order adopts a 10% partnership or voting
equity attribution threshold for the local exchange carrier prong of
the effective competition test. 47 CFR 76.905(b)(4).
The Report and Order permits investors in limited
liability companies to insulate their interests under the insulated
limited partnership criteria.
The Report and Order clarifies the attribution and
affiliation standards for the following rules: 47 CFR 76.1000 (program
access); 47 CFR 76.1300 (program carriage); 47 CFR 76.924 (allocation
of service cost categories); 47
[[Page 67194]]
CFR 76.922 (rates for the basic service tier and cable programming
services tiers); 47 CFR 76.970 (commercial leased access); and 47 CFR
76.1500 (open video systems). Under these rules, entities are
affiliated if either entity has an attributable interest in the other
or if a third party has an attributable interest in both entities.
The Report and Order adopts transitional provisions. For
the ownership rules covered in the Report and Order, the new
attribution rules apply only to interests acquired on or after June 26,
1998. For the other rules covered in the Report and Order, the new
attribution rules apply to all interests, no matter when acquired.
Ordering Clauses
3. Accordingly, pursuant to Sections 4(i), 303 and 612,
613(f)(1)(A)&(B), 616, 623, 628 and 652 of the Communications Act of
1934, as amended, 47 U.S.C. 154(i), 303, 532, 533(f)(1)(A)&(B), 536(a),
543, 548(b), 572 and 573, the amendments discussed in this Report and
Order Are adopted. These amendments shall become effective 70 days
after publication in the Federal Register, following OMB approval,
unless a notice is published in the Federal Register stating otherwise.
4. The Commission's Office of Public Affairs, Reference Operations
Division, Shall send a copy of this Report and Order, including the
Final Regulatory Flexibility Analysis, to the Chief Counsel for
Advocacy of the Small Business Administration in accordance with
paragraph 603(a) of the Regulatory Flexibility Act, Public Law 96-354,
94 Stat. 1164, 5 U.S.C.A. 601 et seq.
List of Subjects in 47 CFR Part 76
Administrative practice and procedure, Cable television, Equal
employment opportunity, Political candidates, Reporting and
recordkeeping requirements.
Federal Communications Commission.
Magalie Roman Salas,
Secretary.
Rule Changes
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, 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 76.501 is amended by revising Notes 1, 2, 5 and 6 to
read as follows:
Sec. 76.501 Cross-ownership.
* * * * *
Note 1: Actual working control, in whatever manner exercised,
shall be deemed a cognizable interest.
Note 2: In applying the provisions of this section, ownership
and other interests in an entity or entities covered by this rule
will be attributed to their holders and deemed cognizable pursuant
to the following criteria:
(a) Except as otherwise provided herein, partnership and direct
ownership interests and any voting stock interest amounting to 5% or
more of the outstanding voting stock of a corporation will be
cognizable;
(b) Investment companies, as defined in 15 U.S.C. 80a-3, insurance
companies and banks holding stock through their trust departments in
trust accounts will be considered to have a cognizable interest only if
they hold 20% or more of the outstanding voting stock of a corporation,
or if any of the officers or directors of the corporation are
representatives of the investment company, insurance company or bank
concerned. Holdings by a bank or insurance company will be aggregated
if the bank or insurance company has any right to determine how the
stock will be voted. Holdings by investment companies will be
aggregated if under common management.
(c) Attribution of ownership interests in an entity covered by this
rule that are held indirectly by any party through one or more
intervening corporations will be determined by successive
multiplication of the ownership percentages for each link in the
vertical ownership chain and application of the relevant attribution
benchmark to the resulting product, except that wherever the ownership
percentage for any link in the chain exceeds 50%, it shall not be
included for purposes of this multiplication. [For example, if A owns
10% of company X, which owns 60% of company Y, which owns 25% of
``Licensee,'' then X's interest in ``Licensee'' would be 25% (the same
as Y's interest since X's interest in Y exceeds 50%), and A's interest
in ``Licensee'' would be 2.5% (0.1 x 0.25). Under the 5% attribution
benchmark, X's interest in ``Licensee'' would be cognizable, while A's
interest would not be cognizable.]
(d) Voting stock interests held in trust shall be attributed to any
person who holds or shares the power to vote such stock, to any person
who has the sole power to sell such stock, and to any person who has
the right to revoke the trust at will or to replace the trustee at
will. If the trustee has a familial, personal or extra-trust business
relationship to the grantor or the beneficiary, the grantor or
beneficiary, as appropriate, will be attributed with the stock
interests held in trust. An otherwise qualified trust will be
ineffective to insulate the grantor or beneficiary from attribution
with the trust's assets unless all voting stock interests held by the
grantor or beneficiary in the relevant entity covered by this rule are
subject to said trust.
(e) Subject to paragraph (i) of this Note, holders of non-voting
stock shall not be attributed an interest in the issuing entity.
Subject to paragraph (i) of this Note, holders of debt and instruments
such as warrants, convertible debentures, options or other non-voting
interests with rights of conversion to voting interests shall not be
attributed unless and until conversion is effected.
(f)(1) Subject to paragraph (i) of this Note, 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 media-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 media-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 (g)(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 media 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 media activities of the LLC or RLLP. The criteria
which would assume adequate insulation for purposes of these
[[Page 67195]]
certifications are described in the Memorandum Opinion and Order in MM
Docket No. 83-46, FCC 85-252 (released June 24, 1985), as modified on
reconsideration in the Memorandum Opinion and Order in MM Docket No.
83-46, FCC 86-410 (released November 28, 1986). 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 media
businesses 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.
(g) 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 businesses in addition
to its primary media business, it may request the Commission to waive
attribution for any officer or director whose duties and
responsibilities are wholly unrelated to its primary business. The
officers and directors of a parent company of a media entity, 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 media subsidiary, and a certification properly
documenting this fact is submitted to the Commission. The officers and
directors of a sister corporation of a media entity shall not be
attributed with ownership of that entity by virtue of such status.
(h) Discrete ownership interests held by the same individual or
entity will be aggregated in determining whether or not an interest is
cognizable under this section. An individual or entity will be deemed
to have a cognizable investment if:
(1) The sum of the interests held by or through ``passive
investors'' is equal to or exceeds 20 percent; or
(2) The sum of the interests other than those held by or through
``passive investors'' is equal to or exceeds 5 percent; or
(3) The sum of the interests computed under paragraph (i)(1) of
this section plus the sum of the interests computed under paragraph
(i)(2) of this section is equal to or exceeds 20 percent.
(i) Notwithstanding paragraphs (e) and (f) of this Note, the holder
of an equity or debt interest or interests in an entity covered by this
rule shall have that interest attributed if the equity (including all
stockholdings, whether voting or nonvoting, common or preferred, and
partnership interests) and debt interest or interests, in the
aggregate, exceed 33 percent of the total asset value (all equity plus
all debt) of that entity, provided however that:
(1) in applying the provisions of paragraph (i) of this note to
Secs. 76.501, 76.505 and 76.905(b)(2), the holder of an equity or debt
interest or interests in a broadcast station, cable system, SMATV or
multiple video distribution provider subject to Secs. 76.501, 76.505,
or 76.905(b)(2) (``interest holder'') shall have that interest
attributed if the equity (including all stockholdings, whether voting
or nonvoting, common or preferred, and partnership interests) and debt
interest or interests, in the aggregate, exceed 33 percent of the total
asset value (defined as the aggregate of all equity plus all debt) of
that entity; and
(i) the interest holder also holds an interest in a broadcast
station, cable system, SMATV, or multiple video distribution provider
that operates in the same market, is subject to Secs. 76.501, 76.505,
or 76.905(b)(2) and is attributable without reference to this paragraph
(i); or
(ii) the interest holder supplies over fifteen percent of the total
weekly broadcast programming hours of the station in which the interest
is held.
(2) For purposes of applying subparagraph (i)(1), the term
``market'' will be defined as it is defined under the rule that is
being applied.
* * * * *
Note 5: Certifications pursuant to this section and these notes
shall be sent to the attention of the Cable Services Bureau, Federal
Communications Commission, 445 12th Street, NW Washington, DC 20554.
Note 6: In applying paragraph (a) of Sec. 76.501, no minority
voting stock interest will be cognizable if there is a single holder
of more than 50% of the outstanding voting stock of the corporation
in which the minority interest is held, provided however, that an
investor that has an interest under the terms of Note 2(i) of this
section shall have that interest attributed.
3. Section 76.503 is amended by adding a Note 2 to read as follows:
Sec. 76.503 National subscriber limits.
* * * * *
Note 2: 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
[[Page 67196]]
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.
4. Section 76.504 is amended by removing paragraph (h) and adding a
Note 1 to read as follows:
Sec. 76.504 Limits on carriage of vertically integrated programming.
* * * * *
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.
5. Section 76.505 is amended by adding paragraphs (f) and (g) to
read as follows:
Sec. 76.505 Prohibition on buy outs.
* * * * *
(f) For purposes of this section, entities are affiliated if either
entity has an attributable interest in the other or if a third party
has an attributable interest in both entities.
(g) Attributable interest shall be defined by reference to the
criteria set forth in Notes 1 through 5 to Sec. 76.501.
6. Section 76.905 is amended by adding paragraphs (h) and (i) to
read as follows:
Sec. 76.905 Standards for identification of cable systems subject to
effective competition.
* * * * *
(h) For purposes of paragraph (b)(2) of this section, entities are
affiliated if either entity has an attributable interest in the other
or if a third party has an attributable interest in both entities.
Attributable interest shall be defined by reference to the criteria set
forth in Notes 1 through 5 to Sec. 76.501.
(i) For purposes of paragraph (b)(4) of this section, entities are
affiliated if either entity has an attributable interest in the other
or if a third party has an attributable interest in both entities.
Attributable interest shall be defined as follows:
(1) A 10% partnership or voting equity interest in a corporation
will be cognizable.
(2) Subject to paragraph (i)(3), a limited partnership interest of
10% or
[[Page 67197]]
more shall be attributed to a limited partner unless that partner is
not materially involved, directly or indirectly, in the management or
operation of the media-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 media-related activities of the
partnership and the relevant entity so certifies. Certifications must
be made pursuant to the guidelines set forth in Note 2(f) to
Sec. 76.501.
(3) Notwithstanding paragraph (i)(2), the holder of an equity or
debt interest or interests in an entity covered by this rule shall have
that interest attributed if the equity (including all stockholdings,
whether voting or nonvoting, common or preferred, and partnership
interests) and debt interest or interests, in the aggregate, exceed 33
percent of the total asset value (all equity plus all debt) of that
entity.
(4) Discrete ownership interests held by the same individual or
entity will be aggregated in determining whether or not an interest is
cognizable under this section. An individual or entity will be deemed
to have a cognizable investment if the sum of the interests other than
those held by or through ``passive investors'' is equal to or exceeds
10%.
7. Section 76.922 is amended by adding paragraphs (f)(6) (i) and
(ii) to read as follows:
Sec. 76.922 Rates for the basic service tier and cable programming
services tiers.
* * * * *
(f) * * *
(6)(i) For purposes of this section, entities are affiliated if
either entity has an attributable interest in the other or if a third
party has an attributable interest in both entities.
(ii) 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) The limited partner and LLC/LLP/RLLP insulation provisions of
Note 2(f) shall not apply; and
(B) The provisions of Note 2(a) regarding five (5) percent
interests shall include all voting or nonvoting stock or limited
partnership equity interests of five (5) percent or more.
* * * * *
8. Section 76.924 is amended by adding paragraphs (i)(6) and (i)(7)
to read as follows:
Sec. 76.924 Allocation to service cost categories.
* * * * *
(i) * * *
(6) For purposes of this section, entities are affiliated if either
entity has an attributable interest in the other or if a third party
has an attributable interest in both entities.
(7) Attributable interest shall be defined by reference to the
criteria set forth in Notes 1 through 5 to Sec. 76.501 provided,
however, that:
(i) The limited partner and LLC/LLP/RLLP insulation provisions of
Note 2(f) shall not apply; and
(ii) The provisions of Note 2(a) regarding five (5) percent
interests shall include all voting or nonvoting stock or limited
partnership equity interests of five (5) percent or more.
* * * * *
9. Section 76.970 is amended by redesignating paragraphs (c), (d),
(e), (f), (g) and (h) as paragraphs (d), (e), (f), (g), (h) and (i);
revising paragraph (b); and adding a new paragraph (c) to read as
follows:
Sec. 76.970 Commercial leased access rates.
* * * * *
(b) In determining whether an entity is an ``affiliate'' for
purposes of commercial leased access, entities are affiliated if either
entity has an attributable interest in the other or if a third party
has an attributable interest in both entities.
(c) Attributable interest shall be defined by reference to the
criteria set forth in Notes 1-5 to Sec. 76.501 provided, however, that:
(1) The limited partner and LLC/LLP/RLLP insulation provisions of
Note 2(f) shall not apply; and
(2) The provisions of Note 2(a) regarding five (5) percent
interests shall include all voting or nonvoting stock or limited
partnership equity interests of five (5) percent or more.
* * * * *
10. Section 76.1000 is amended by revising paragraph (b) to read as
follows:
Sec. 76.1000 Definitions.
* * * * *
(b) Cognizable interests. In applying the provisions of this
subpart, ownership and other interests in cable operators, satellite
cable programming vendors or satellite broadcast programming vendors
will be attributed to their holders and subject the interest holders to
the rules of this subpart. Cognizable and attributable interests shall
be defined by reference to the criteria set forth in Notes 1 through 5
to Sec. 76.501 provided, however, that:
(1) The limited partner and LLC/LLP/RLLP insulation provisions of
Note 2(f) shall not apply; and
(2) The provisions of Note 2(a) regarding five (5) percent
interests shall include all voting or nonvoting stock or limited
partnership equity interests of five (5) percent or more.
* * * * *
11. Section 76.1300 is amended by redesignating paragraphs (b), (c)
and (d) as paragraphs (c), (d) and (e); revising paragraph (a) and
adding a new paragraph (b) to read as follows:
Sec. 76.1300 Definitions.
* * * * *
(a) Affiliated. For purposes of this subpart, entities are
affiliated if either entity has an attributable interest in the other
or if a third party has an attributable interest in both entities.
(b) Attributable interest. The term ``attributable interest'' shall
be defined by reference to the criteria set forth in Notes 1 through 5
to Sec. 76.501 provided, however, that:
(1) The limited partner and LLC/LLP/RLLP insulation provisions of
Note 2(f) shall not apply; and
(2) The provisions of Note 2(a) regarding five (5) percent
interests shall include all voting or nonvoting stock or limited
partnership equity interests of five (5) percent or more.
* * * * *
Sec. 76.1401 [Removed]
12. Section 76.1401 is removed.
13. Section 76.1500 is amended by redesignating paragraph (h) as
paragraph (i), revising paragraph (g) and adding a new paragraph (h) to
read as follows:
Sec. 76.1500 Definitions.
* * * * *
(g) Affiliated. For purposes of this subpart, entities are
affiliated if either entity has an attributable interest in the other
or if a third party has an attributable interest in both entities.
(h) Attributable Interest. The term ``attributable interest'' shall
be defined by reference to the criteria set forth in Notes 1 through 5
to Sec. 76.501 provided, however, that:
(1) The limited partner and LLC/LLP/RLLP insulation provisions of
Note 2(f) shall not apply; and
(2) The provisions of Note 2(a) regarding five (5) percent
interests shall include all voting or nonvoting stock or limited
partnership equity interests of five (5) percent or more.
* * * * *
[FR Doc. 99-31023 Filed 11-30-99; 8:45 am]
BILLING CODE 6712-01-P
