[Federal Register Volume 61, Number 68 (Monday, April 8, 1996)]
[Rules and Regulations]
[Pages 15386-15388]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-8454]



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[[Page 15387]]



FEDERAL COMMUNICATIONS COMMISSION
47 CFR Parts 21 and 76

[CS Docket No. 96-56, FCC 96-112]


Cable Television; Implementation of the Selecommunication Act of 
1996

AGENCY: Federal Communications Commission.

ACTION: Final rule.

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SUMMARY: This Order implements sections of the Telecommunications Act 
of 1996. The Order eliminates restrictions on the cross ownership of 
broadcast networks and cable television systems, allows cross ownership 
and operation of multichannel multipoint distribution services or 
Satellite Master Antenna Television systems and cable systems when 
effective competition exists in the franchise area, and eliminates the 
three-year holding period requirement for transfer of cable systems.

EFFECTIVE DATE: April 8, 1996.

FOR FURTHER INFORMATION CONTACT: Paul Glenchur, Cable Services Bureau, 
(202) 416-1800.

SUPPLEMENTARY INFORMATION: This is a synopsis of a Commission Order in 
CS Docket No. 96-56, FCC 96-112, adopted March 15, 1996 and released 
March 18, 1996. The complete text of this document is available for 
inspection and copying during normal business hours in the FCC 
Reference Center, 1919 M St., N.W., Washington, D.C.

I. Introduction

    1. In this Order, we amend certain of the Commission's rules 
relating to cable television ownership to conform them to changes in 
the Communications Act enacted on February 8, 1996, in the 
Telecommunications Act of 1996 (``1996 Act'').

II. Television Broadcast Network--Cable Cross Ownership

    2. Section 76.501 of the Commission's rules limits the extent to 
which cross ownership is permitted between cable television systems and 
television broadcast networks. Under this rule, network-cable cross 
ownership is allowed if such combinations do not exceed 10% of homes 
passed by cable nationwide, and do not exceed 50% of homes passed by 
cable within an area of dominant influence (ADI).
    3. Section 202(f) of the 1996 Act provides as follows:
    (f) Cable Cross Ownership.--
    (1) Elimination of restrictions.--The Commission shall revise 
Section 76.501 of its regulations (47 CFR 76.501) to permit a person or 
entity to own or control a network of broadcast stations and a cable 
system.
    4. Accordingly, we are amending Section 76.501 as reflected below 
to permit a person or entity to own or control a network of broadcast 
stations and a cable system.

III. MMDS/SMATV--Cable Cross Ownership

    5. Section 613(a)(2) of the Communications Act, as adopted in the 
Cable Television Consumer Protection and Competition Act of 1992 
(``1992 Cable Act''), made it unlawful to hold a license for a 
multichannel multipoint distribution service, or to offer satellite 
master antenna television service separate and apart from a franchised 
cable service, in any portion of the franchise area served by the cable 
operator's cable system. Rules implementing this restriction were 
adopted by the Commission and appear in Sections 21.912 and 76.501 of 
the rules. Section 202(i) of the 1996 Act adds the following to the 
existing restriction to provide that the Commission shall not apply the 
requirements of subsection 613(a): To any cable operator in any 
franchise area in which a cable operator is subject to effective 
competition as determined under section 623(l).
    6. Accordingly, as reflected below, we amend the applicable 
Commission rules to conform them to the new statutory language.

IV. Antitrafficking Regulation

    7. Section 617 of the Communications Act, as adopted in the 1992 
Cable Act, restricted the ability of a cable operator to sell or 
otherwise transfer ownership in a cable system within a 36-month period 
following either the acquisition or initial construction of the system. 
Rules implementing the three-year holding requirement were adopted by 
the Commission and appear in Section 76.502 of the rules.
    8. Section 301(i) of the 1996 Act eliminates these restrictions. 
Limitations on the time a local franchise authority has to consider 
applications to sell or transfer systems are retained.
    9. Accordingly, as reflected below, we amend the applicable 
Commission rules to conform them to the new statutory language.

V. Administrative Matters

    10. The rules adopted herein have been analyzed with respect to the 
Paperwork Reduction Act of 1995 and found to contain no new or modified 
form, information collection and/or record keeping, labeling, 
disclosure or record retention requirements. These rules will not 
increase or decrease burden hours imposed on the public.
    11. Because these rule changes simply conform the Commission's 
rules to the statute, we find for good cause that compliance with the 
notice and comment provisions of the Administrative Procedure Act is 
unnecessary. See 5 U.S.C. Sec. 553(b)(B). For similar reasons, and 
because the amendments ease restrictions, compliance with the effective 
date provision of the Administrative Procedure Act also is unnecessary. 
5 U.S.C. Sec. 553(d).
    12. Accordingly, pursuant to sections 4(i), 4(j) and 303(r) of the 
Communications Act of 1934, as amended, 47 U.S.C. Secs. 154(i), 154(j), 
and 303(r), and Telecommunications Act of 1996, Secs. 202 and 301, it 
is ordered that the Commission's Rules are amended as set forth below, 
Effective April 8, 1996.

List of Subjects

47 CFR Part 21

    Television.

47 CFR Part 76

    Cable television.

Federal Communications Commission.
William F. Caton,
Acting Secretary.

Rule Changes

    Parts 21 and 76 of Title 47 of the Code of Federal Regulations are 
amended as follows:

PART 21--DOMESTIC PUBLIC FIXED RADIO SERVICES

    1. The authority citation for Part 21 continues to read as follows:
    Authority: Secs. 1, 2, 4, 201-205, 208, 215, 218, 303, 307, 313, 
403, 404, 410, 602, 48 Stat. as amended, 1064, 1066, 1070-1073, 
1076, 1077, 1080, 1082, 1083, 1087, 1094, 1098, 1102; 47 U.S.C. 151, 
154, 201-205, 208, 215, 218, 303, 307, 313, 314, 403, 404, 602; 47 
U.S.C. 552, 554.

    2. Section 21.912 is amended by adding a new paragraph (e)(3) to 
read as follows:


Sec. 21.912  Cable television company eligibility requirements.

* * * * *
    (e) * * *
    (3) The limitations on cable television ownership in this section 
do not apply to any cable operator in any franchise area in which a 
cable operator is subject to effective competition as determined under 
section 623(l) of the Communications Act.
* * * * *

[[Page 15388]]


PART 76--CABLE TELEVISION SERVICE

    3. The authority citation for Part 76 continues to read as follows:

    Authority: Secs. 2, 3, 4, 301, 303, 307, 308, 309, 48 Stat., as 
amended, 1064, 1065, 1066, 1081, 1082, 1083, 1084, 1085, 1101; 47 
U.S.C. Sec. 152, 153, 154, 301, 303, 307, 308, 309; Secs. 612, 614-
615, 623, 632 as amended, 106 Stat. 1460, 47 U.S.C. 532; Sec. 623, 
as amended, 106 Stat. 1460; 47 U.S.C. 532, 533, 535, 543, 552.

    4. Section 76.501 is amended by removing and reserving paragraph 
(b) and by revising paragraph (f) to read as follows:
* * * * *


Sec. 76.501  Cross-ownership.

* * * * *
    (f) The restrictions in paragraphs (d) and (e) of this section 
shall not apply to any cable operator in any franchise area in which a 
cable operator is subject to effective competition as determined under 
section 623(l) of the Communications Act.
* * * * *
    5. Section 76.502 is revised to read as follows:


Sec. 76.502  Time limits applicable to franchise authority 
consideration of transfer applications.

    (a) A franchise authority shall have 120 days from the date of 
submission of a completed FCC Form 394, together with all exhibits, and 
any additional information required by the terms of the franchise 
agreement or applicable state or local law to act upon an application 
to sell, assign, or otherwise transfer controlling ownership of a cable 
system.
    (b) A franchise authority that questions the accuracy of the 
information provided under paragraph (a) must notify the cable operator 
within 30 days of the filing of such information, or such information 
shall be deemed accepted, unless the cable operator has failed to 
provide any additional information reasonably requested by the 
franchise authority within 10 days of such request.
    (c) If the franchise authority fails to act upon such transfer 
request within 120 days, such request shall be deemed granted unless 
the franchise authority and the requesting party otherwise agree to an 
extension of time.

[FR Doc. 96-8454 Filed 4-5-96; 8:45 am]
BILLING CODE 6712-01-P