Report No. CS 97-22 CABLE SERVICES ACTION August 7, 1997 COMMISSION ADOPTS RULES FOR VIDEO CLOSED CAPTIONING (MM DOCKET 95-176) The Commission has adopted an order (FCC 97-279) establishing rules to implement the closed captioning requirements of the Telecommunications Act of 1996. The 1996 Act required the Commission to adopt, by August 8, 1997, rules and implementation schedules for captioning of video programming ensuring access to video programming by persons with hearing disabilities. This order implements Section 305 of the 1996 Act which added a new Section 713, Video Programming Accessibility, to the Communications Act. These rules will increase the amount of closed captioned video programming available to the more than 22 million Americans with hearing disabilities. Congress generally required that video programming be closed captioned, regardless of distribution technology, to ensure access to persons with hearing disabilities. Congress also recognized that in some situations requiring that programming be closed captioned might prove to be an undue burden on video programming providers or owners and authorized the Commission to exempt classes of programs or services for which provision of video programming would be economically burdensome. Some of the key elements in the order adopted today include: Video programming distributors will be responsible for compliance with captioning requirements. This is the most efficient and focused way to ensure compliance. Video programming distributors include all entities who provide video programming directly to customers' homes, regardless of distribution technology used (i.e., broadcasters, cable operators other and MVPDs). (over) That new programming (video programming first published or exhibited on or after January 1, 1998) is made "fully accessible," as required by Section 713. The rules establish an 8 year transition period and define full accessibility as the closed captioning of 95% of nonexempt new programming. Compliance will be measured on a channel- by-channel basis for MVPDs and will be measured over each calendar quarter. Three benchmarks are established during the transition period. These benchmarks are based on average amounts of required captioning of approximately 5 hours per day after 2 years, 10 hours per day after 4 years and 15 hours per day after 6 years. During this transition period if these closed captioning requirements exceed the number of hours of nonexempt new programming on a channel during the calendar quarter, 95% of the nonexempt new programming on a channel must contain captions. The Commission will also require video programming providers to continue to provide closed captioning at a level substantially the same as the average level of captioning that they provided during the first six months of 1997, even if the amount of captioned programming exceeds that required under the benchmarks. That the accessibility of pre-rule programming (video programming first published or exhibited before January 1, 1998) is "maximized" through the provision of closed captions, as required by Section 713. With respect to pre- rule programming that does not meet any of our criteria for exemption, at least 75% of such programming must contain closed captions at the end of a ten year transition period. Compliance will be measured on a per-channel, quarterly basis. The Commission expects that the amount of captioning of such programming will increase incrementally over the transition period and does not set specific benchmarks for pre-rule programming. During the transition period the Commission will monitor distributor's efforts to increase the amount of captioning to determine whether channels are progressing toward the 75% requirement. The Commission also will reevaluate its decision to determine whether specific benchmarks are necessary to increase captioning and whether the 75% threshold for maximizing the accessibility of pre- rule programming is the appropriate amount to meet the goals of the statute. Exemptions based on economic burden: The rules exempt from our closed captioning requirements several specific classes of programming for which such requirements would be economically burdensome. These include: non-English language programming, primarily textual programming, programming distributed late at night, interstitial announcements, promotional programming and public service announcements, certain locally-produced and distributed programming, non-vocal musical programming, ITFS programming and programming from new networks. The rules further exempt any video programming provider from closed captioning requirements where the provider has annual gross revenues of less than three million dollars. Advertisements of less than 5 minutes are not included in the definition of covered programming here. The rules also permit some smaller video programming providers to caption less than the specified benchmark amounts of their programming by permitting them to cap their spending on closed captioning based on their gross revenues. Exemptions based on existing contracts: The rules will exempt any programming subject to a contract in effect on February 8, 1996, for which compliance with the closed captioning requirements would constitute a breach of contract. Exemptions based on undue burden: The Commission will consider petitions for exemption from the closed captioning rules if the requirements would impose an undue burden based on statutory criteria. Standards for quality and accuracy: Video programming distributors will be required to deliver intact the closed captioning they receive as part of the programming they distribute to viewers, where the captions do not require reformatting. Video programming distributors must maintain and monitor their equipment to ensure the technical quality of the closed captioning they transmit. The Commission will not adopt standards for the non-technical aspects of quality at this time. Enforcement process: The rules will be enforced through a complaint process. Complaints alleging violation of the closed captioning rules must first be directed in writing to the video programming distributor responsible for distribution of the programming. If a video programming distributor fails to respond to a complaint or a dispute remains following this initial procedure, a complaint may then be filed with the Commission. Action by the Commission August 7, 1997, by Order (FCC 97- 279). Chairman Hundt, Commissioners Quello, Ness and Chong, with Chairman Hundt and Commissioner Chong issuing separate statements. - FCC - News Media Contact: Morgan Broman at (202) 418-2358 Cable Services Bureau Contact: Marcia Glauberman at (202) 418- 7200; Cable Services Bureau TTY: (202) 418-7172