[Federal Register Volume 61, Number 222 (Friday, November 15, 1996)]
[Notices]
[Pages 58554-58555]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-29299]


=======================================================================
-----------------------------------------------------------------------

FEDERAL COMMUNICATIONS COMMISSION


Notice of Public Information Collections Submitted to OMB for 
Emergency Review and Approval

November 8, 1996.
SUMMARY: The Federal Communications, as part of its continuing effort 
to reduce paperwork burden invites the general public and other Federal 
agencies to take this opportunity to comment on the following proposed 
and/or continuing information collections, as required by the Paperwork 
Reduction Act of 1995, Public Law 104-13. An agency may not conduct or 
sponsor a collection of information unless it displays a currently 
valid control number. No person shall be subject to any penalty for 
failing to comply with a collection of information subject to the 
Paperwork Reduction Act (PRA) that does not display a valid control 
number. Comments are requested concerning (a) whether the proposed 
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 Commissions 
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.

    Note: The Commission is seeking emergency approval for these 
information collections by December 12, 1996, under the provisions 
of 5 CFR Section 1320.13.

DATES: Written comments should be submitted on or before December 12, 
1996. If you anticipate that you will be submitting comments, but find 
it difficult to do so within the period of time allowed by this notice, 
you should advise the contact listed below as soon as possible.

ADDRESSES: Direct all comments to Dorothy Conway, Federal 
Communications, Room 234, 1919 M St., N.W., Washington, DC 20554 or via 
internet to [email protected] and Timothy Fain, OMB Desk Officer, 10236 
NEOB 725 17th Street, N.W., Washington, DC 20503 or [email protected].

FOR FURTHER INFORMATION CONTACT: For additional information or copies 
of the information collections contact Dorothy Conway at 202-418-0217 
or via internet at [email protected].

SUPPLEMENTARY INFORMATION:
    OMB Approval Number: 3060-0685.
    Title: Annual Updating of Maximum Permitted Rates for Regulated 
Cable Services.
    Form No.: FCC Form 1240.
    Type of Review: Revision of a currently approved collection.
    Respondents: Business or other for-profit; State, Local or Tribal 
Governments.
    Number of Respondents: 8,475. (5,475 cable operators and 3,000 
local franchise authorities (``LFAs'').
    Estimated Time Per Response: 1-15 hours.
    Total Annual Burden: The following are estimates of paperwork 
burdens imposed on cable operators and local franchising authorities 
with respect to the FCC Form 1240 information collection requirement. 
The modification to the Form 1240 rate methodology requirements only 
pertains to first-time filings of FCC Form 1240. Also, the modification 
merely results in permitting operators to project and recoup certain 
costs sooner, rather than later. This results in no measurable burden 
revision for this information collection. Also, if there was an 
additional burden significant enough to be measured, any burden added 
to an operator's first Form 1240 filing would be cancelled out by the 
decreased burden in completing the second Form 1240 filing. The 
Commission therefore reports the estimated burden for the Form 1240 
information collection requirement as it currently exists in the OMB 
inventory.
    Burden for operators: We estimate that 25% of operators will 
contract out the burden of filing and that it will take 1 hour to 
coordinate information with those contractors. The remaining 75% of 
operators are estimated to employ in house staff to complete the 
filing. 1,369 filings (25% contracted out)  x  1 hour = 1,369 hours. 
4,106 filings (75% in house)  x  15 hours = 61,590 hours.
    Additionally, 76.933(g)(2) states: If an LFA has taken no action 
within the 90-day review period, then the proposed rates may go into 
effect at the end of the review period, subject to a prospective rate 
reduction and refund if the LFA subsequently issues a written decision 
disapproving any portion of such rates. However, if an operator 
inquires as to whether the LFA intends to issue a rate

[[Page 58555]]

order after the initial review period, the LFA or its designee must 
notify the operator of its intent in this regard within 15 days of the 
operator's inquiry. We estimate this will occur in 25% of the instances 
when Form 1240s are filed by cable operators with their LFAs. 25% of 
3,000 = 750 inquiries at an estimated 1 burden for each inquiry = 750 
hours. Total burden hours to operators = 1,369 + 61,590 + 750 = 63,709 
hours.
    Burden to LFAs: The Commission estimates there will be 3,000 FCC 
Form 1240s filed with LFAs, annually. Average LFA reviewing time for 
each FCC Form 1240 is estimated to be 8 hours. 3,000  x  8 hours = 
24,000 burden hours.
    Additionally, we estimate 750 responses to operator requests 
pursuant to 76.933(g)(2). 750 notifications at an estimated 1 burden 
hour for each notification = 750 hours. Total burden hours to LFAs = 
(3,000  x  8 hrs.) + (750  x  1 hr.) = 24,750 hrs.
    Total burden hours for all respondents = 63,799 + 24,750 = 88,549 
hours.
    Costs for Respondents: $2,084,450. We estimate an annual purchase 
of 4,000 diskette versions of FCC Form 1240 @ $5 per diskette = 
$20,000. Printing, photocopying and postage costs incurred by 
respondents is estimated to be $2 per form (5,475 filings  x  $2) = 
$10,950. We estimate Form 1240 assistance will be performed by legal 
and accounting contractors at an average of $100/hour for 25% of the 
filings. $100/hour  x  1,369 filings (25% of Form 1240 filings)  x  15 
hours = $2,053,500.
    Total respondent costs: $20,000 + $10,950 + 2,053,500 = $2,084,450.
    Needs and Uses: On September 22, 1995, the Commission released the 
Thirteenth Order on Reconsideration (``Order''), FCC 95-397, MM Docket 
No. 92-266, which adopted a new optional rate adjustment methodology 
permitting cable operators to make annual rate changes to their basic 
service tiers (``BSTs'') and cable programming service tiers 
(``CPSTs''). Operators electing to use this methodology adjust their 
rates once per year to reflect reasonably certain and reasonably 
quantifiable changes in external costs, inflation, and the number of 
regulated channels that are projected for the 12 months following the 
rate change. To enable operators to use this optional rate adjustment 
methodology the Commission created FCC Form 1240 Annual Updating of 
Maximum Permitted Rates for Regulated Cable Services.
    Subsequent to the availability of FCC Form 1240, the Commission 
received numerous requests for waiver of certain rate adjustment 
requirements contained in the Order. Therefore, on, Novemeber 1, 1996, 
the Commission released an Order, DA 96-1804, which grants for all 
cable operators' initial Form 1240 filing, a waiver of the requirement 
that only costs that have actually been incurred may be included in the 
true-up period. Specifically, an operator's initial Form 1240 filing 
may now include projected changes in costs, inflation, channels and 
subscriber information attributable to the period between the last date 
for which historical cost data is available and the effective date of 
the new rates. These projections must be accompanied by a separate 
calculation and explanation of the basis for the costs (for the period 
between the last full month for which actual cost data is available and 
the effective date of the new rate). The creation of this blanket 
waiver modifies the Form 1240 information collection requirement and 
therefore requires the approval of the Office of Management and Budget.

Federal Communications Commission.
William F. Caton,
Acting Secretary.
[FR Doc. 96-29299 Filed 11-14-96; 8:45 am]
BILLING CODE 6712-01-P