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Style 10oInitial Codes for Advanced U )a [ PfQK  dddn  ##  [[ b, oT9 !b, oT9 !n )^ `> XifQ ` Advanced Legal WordPerfect Learning Guide   f )^ `> XifQ Advanced Legal WordPerfect Learning Guide   Q" )^ `> XifQ    Copyright  Portola Systems, Inc. 1987, 1988`6 >Page  QN~ )^ `> XifQ    Page ` Copyright  Portola Systems, Inc. 1987, 1988 Style 8PfInitial Codes for Beginninggi )a [ PfQK  dddn  # X` hp x (#%'b, oT9  [ &e )^ `> XifQ ` Beginning Legal WordPerfect Learning Guide   d )^ `> XifQ Beginning Legal WordPerfect Learning Guide   jH )^ `> XifQ    Copyright  Portola Systems, Inc. 1987, 1988`6 >Page  j )^ `> XifQ    Page ` Copyright  Portola Systems, Inc. 1987, 1988 Style 9Initial Codes for Intermediate )a [ PfQK  dddn  # X` hp x (#%'b, oT9 Њ [ e )^ `> XifQ ` Intermediate Legal WordPerfect Learning Guide   3 )^ `> XifQ Intermediate Legal WordPerfect Learning Guide   jf )^ `> XifQ    Copyright  Portola Systems, Inc.`+ >Page  jX )^ `> XifQ    Page ` Copyright  Portola Systems, Inc. 1987, 1988 UpdateInitial Codes for Update Module )a [ PfQK  dddn  #  [ X` hp x (#%'b, oT9 !n )^ `> XifQ ` Legal WordPerfect 5.0 Update Class Learning Guide   f )^ `> XifQ Legal WordPerfect 5.0 Update Class Learning Guide   Q" )^ `> XifQ    Copyright  Portola Systems, Inc. 1987, 1988`7 CPage  jN~ )^ `> XifQ    Page ` Copyright  Portola Systems, Inc. 1987, 1988 2(pZ!K!K$K`&33`O5hT(G2PDocument Style&^aO5h.K+&,$@`O5Bȗ+&>` ` ` "i~'^09FSS999Sq+9+/SSSSSSSSSS99qqqSggnxggxx9In]nxgxgS]xgg]]?/?FS9SSISI/SS//I/xSSSS??/SInII?C/CZ9+ZF999+999999S9S/gSgSgSgSgSnnIgIgIgIgI9/9/9/9/nSxSxSxSxSxSxSxSxS]IgSxSxSxS]IxSgSgSgSgSnInInZnIxdgIgIgIgIxSxSxSxZxSxZxS9/9S999SSZZnI]/]<]9]5]/nSanSnSxSxSng?g?g?S?S?S?ZZ]<]/]FxSxSxSxSxSxSn]Z]?]?]?xS]9nSS?]9]Sd+SS8%8WuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuddddddddddddddddddddddddddddddddddddddddN>>\g0>03\\\\\\\\\\>>ggg\yyyyyF\yrrygryyrr>3>g\>\\Q\Q>\g33\3g\\\FF3gQy\QF>(>g>0gg>>>0>>>>>>\>\3y\y\y\y\y\yQyQyQyQyQF3F3F3F3g\\\\ggggrQy\\\\rQ\r\y\y\y\yQyQygyQyQyQyQyQ\\\g\ggF3F\F>F\gggy\r3r_r>rFr3ggg\\yFyFyFgFgFgFggrcr3rgggggggyrgrFrFrF\r>ggFr>r\0\\=3=WddddddddddddddddddddddddddddddddddddddddNBnnB\\F\\\\\\07\7>\7>>\\\??n\\pBnnBigg>\\7"yyyy\nyc\gnn\"i~'^09]SS999S]+9+/SSSSSSSSSS99]]]Sxnxxng?Snxgx]nxxxxn9/9aS9S]I]I9S]/9]/]S]]I?9]SxSSIC%CW9+Wa999+999999S9]/xSxSxSxSxSxxInInInInI>/>/>/>/x]SSSSx]x]x]x]xSxSx]SSxSxSf]xSxSxSxIxIxWxIx{nInInInISSSWS]a?/?]?9?]]WW]n/nKn9nCn/x]xx]x]SSxxIxIxI]?]?]?]WnUn9nax]x]x]x]x]x]xxWnInInIx]n9x]]?n9xSz+SS8-8WuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxNI\\>>>\g0>03\\\\\\\\\\33gggQyyrg>Frgygrr>3>T\>jaaj[Rjj28j[jjRjaR[jjjj[X%Xc>0cT>>>0>>>>>>>>\3QQQQQwyQrQrQrQrQ>3>3>3>3\\\\\\\\\\Q\Z\\\g\QQQyQyQycyQtrQrQrQrQ\\\c\c\>3>\>>>\gcc\r3rIr>r>r3\l\\\\y>y>y>gFgFgFgcrMr3rT\\\\\\crQrQrQ\r>\gFr>\t0\\=!=WddddddddddddddddddddddddddddddddddddddddNBnnBT\>Q\\\\\3;\7;\7>>QQ\??n\\pBnnBmgg>Q\7"yyyy\njc\gnn\"i~'^#)0<multichannel video programming distributor ("MVPD") should be deemed an "affiliate" of a LEC for  S( xpurposes of this test. Finally, the Notice solicited comment on the standards for showing whether a competing MPVD is offering service in the franchise area.  S<( B.` ` Discussion  R2` `  1. Offers services in the franchise area  S( ` 7.` ` To satisfy the new test for effective competition, a cable operator must show that a LEC  St( xor LECaffiliated MVPD or an MVPD using the facilities of a LEC or its affiliate:tZN" yOn ( x"X` hp x (#%'0*,.8135@8:when incorporating the word "offer" into the LEC test, Congress intended that "offer" should lose its  xcontext of the widespread availability of the competing service. To the contrary, the expectation was that  xBthe LEC presence would be ubiquitous, and the intent repeatedly expressed in the floor debates was that  S( x"the people will get a choice in how they get their services.")Z4N" {Od%( x"X` hp x (#%'0*,.8135@8:of impending competition when considering whether effective competition exists under the LEC test.  xVCongress sought to restrain cable rates and stimulate quality cable services. Once the LEC's competitive  xpresence is sufficient to achieve these goals, even if the LEC's buildout or roll out is not complete, the intent of the effective competition test has been met.  St( ` 2 12.` ` On the other hand, service offered only on a test basis, MMDS coverage limited by signal  xstrength or terrain factors, or service only to a specialized or niche market or to a geographically limited  S$ ( xmarket within the franchise area does not satisfy the test.]2$ N" yOD( x8"X` hp x (#%'0*,.8135@8:( xBeach Acquisition Corp. (La Canada, CA, et al.), 13 FCC Rcd 8506 (Cab. Serv. Bur. 1998), application for review  {M(pending.ı Any public representations the LEC has made, for example through any marketing  xand publicity alerting consumers to the LEC's plans for the competitive service, would be relevant. Documentation of actual commercial service must also be provided.  R2` `  2. ,"Comparable" Video Programming   SH ( ` x16.` ` Section 623(l) provides that the competitor must offer "comparable" programming services  xbefore effective competition can be found to exist in the franchise area under either the LEC or the  xBcompeting provider test. In the process of implementing provisions of the 1992 Cable Act, including the  xNcompeting provider test, the Commission adopted a definition of comparable programming. That  xjdefinition involves the offering of at least twelve channels of programming, including at least one channel  S ( xof nonbroadcast programming service.9F N" {O( xB"X` hp x (#%'0*,.8135@8:television broadcasting signals."Z:$N" {Oh( x"X` hp x (#%'0*,.8135@8:P N yO(X` hp x (#%'0*,.8135@8:operator's offering of "superstations" would satisfy the requirement that a competitor offer broadcast  xstations, or whether integration of satellite and offtheair broadcast signals at the receiving location would  xbe considered to be an offering of broadcast signals for the purpose of determining whether a DBS operator offers comparable programming. "R F,`(`(88"Ԍ S( ` 21.` ` In light of our conclusion above, that the existing definition of comparable programming  xbe applied under the LEC test as well as the competing provider test, we do not need to decide whether  S( xsatellitedelivered superstations should be counted as broadcast stations outside their local service areas.GN {O(X` hp x (#%'0*,.8135@8:statutory language which requires us to find that the MVPD in question is affiliated with a LEC. If a  xLEC's relationship with the MVPD, by itself, does not rise to the level of affiliation as defined above, that  xlack of affiliation is not affected by the fact that one or more other LECs also have invested in the MVPD.  xVIf none of the LECs has a sufficient interest in the MVPD to constitute affiliation, then the MVPD is not  xzaffiliated with a LEC, regardless of the aggregated interest of all the LECs. Our approach here is also  S(consistent with our approach to aggregation in other contexts, such as that of small cable operators.[N {O@(X` hp x (#%'0*,.8135@8:meeting all of the relevant criteria under the new effective competition test became exempt from rate  S( xregulation.\* N {O (X` hp x (#%'0*,.8135@8:subscribers.~pZN {Oj (X` hp x (#%'0*,.8135@8:ratemaking process is to have any closure or finality. Shortly before enactment of the 1996 Act, this  x8factor persuaded us to discontinue the practice of reviewing a cable operator's entire rate structure when  S ( x.a CPST rate complaint is filed.^ , N" {O( x6"X` hp x (#%'0*,.8135@8:63.` ` The Notice solicited comment on several issues. The issues raised are the methodology  xthat should be employed to determine the subscriber threshold under the statute; our proposal to implement  x$as a permanent rule a definition of affiliate that would establish affiliation when an entity owns an active  xor passive equity interest of 20% or more in the cable operator or holds de facto control over the operator;  xHthe calculation of "gross annual revenues" counted toward the $250 million threshold; procedures for  xdetermining eligibility for small operator treatment; and the treatment of operators that lose eligibility for  S (small operator relief and become subject to regulation. l N {O(X` hp x (#%'0*,.8135@8:be counted by using the equivalent billing unit methodology."  N" {On( xd"X` hp x (#%'0*,.8135@8:,`(`(88:"Ԍ R2 ` ` 2. ,Definition of "affiliate"  S( ` B67.` ` In the Interim Order, we determined that applying the definition of "affiliate" used in our  S( xsmall system costofservice rulesN yO(X` hp x (#%'0*,.8135@8:either a more liberal threshold when passive investment is involved or the adoption of a procedure to  xenable small operators to request waiver of the affiliate standard when other attributes warrant small  S( xsystem regulatory relief. N yO (X` hp x (#%'0*,.8135@8:revenues when determining whether an operator is affiliated with an entity generating $250 million in annual revenues.  S( ` L77.` ` Finally, we must also consider whether multiple equity stakes in a small operator can be  x~accumulated toward the $250 million threshold. SCBA urges the Commission to resist aggregation based  xon language in the Joint Committee Report that seems to limit the small operator's ability to affiliate "with  S(( x`any entity" whose annual revenues exceed the cap.( N yO&(X` hp x (#%'0*,.8135@8:about to lose its deregulatory status. In order to carry its rates over into regulation, an operator must  xVdemonstrate that it has had such rates in effect three months prior to the loss of small operator eligibility.  xAlthough some reasonable variation in rates over the preceding threemonth period would not disqualify  xan operator from transition treatment, a substantial spike in rates during the threemonth period would  xindicate that rates were increased primarily to ensure that higher rates carry over into the regulated environment.  S ( V. DEFINITION OF "AFFILIATE" IN THE CONTEXT OF CABLETELCO  S (BUYOUTS  S ( ` Y90.` ` Section 302 of the 1996 Act added Section 652 to the Communications Act. Section 652 provides in relevant part:  ` 8XX` ` (a) Acquisitions By Carriers. No local exchange carrier or any affiliate of such carrier  ` jowned by, operated by, controlled by, or under common control with such carrier may  ` zpurchase or otherwise acquire directly or indirectly more than a 10 percent financial  ` interest, or any management interest, in any cable operator providing cable service within the local exchange carrier's telephone service area.(#`  ` XX` ` (b) Acquisitions By Cable Operators. No cable operator or affiliate of a cable operator  ` xthat is owned by, operated by, controlled by, or under common ownership with such cable  ` Foperator may purchase or otherwise acquire, directly or indirectly, more than a 10 percent  ` financial interest, or any management interest, in any local exchange carrier providing  S(telephone exchange service within such cable operator's franchise area."N yO(X` hp x (#%'0*,.8135@8:3$ ZN" {O( x"X` hp x (#%'0*,.8135@8: as proposed in our Notice, but should not replicate or replace antitrust litigation.  S ( ` j107.` ` We disagree with those commenters who argue that Congress intended to provide video  S ( xservices competitors with a higher degree of protection than is provided by the federal antitrust laws.4Z FN" yOh( x("X` hp x (#%'0*,.8135@8:N" {Oh( xF"X` hp x (#%'0*,.8135@8:plausible theory showing that the cable operator has a reasonable prospect of ultimately recouping its  S ( x8investment in belowcost prices, including the time value of the money invested in belowcost pricing.? 0 N {O(X` hp x (#%'0*,.8135@8:v119.` ` In the Interim Order, we eliminated language in Note Six to Section 76.605 of the  xCommission's rules that permitted an LFA to apply to the Commission for a waiver to impose more  S" ( xstringent cable technical standards than the standards prescribed by the Commission.GT$" N" {O( x,"X` hp x (#%'0*,.8135@8:the Commission's technical standards is "the only practical method of handling complaints" regarding  S( xLsignal quality problems.qN" {O ( x2"X` hp x (#%'0*,.8135@8:though the franchising authority can still require system upgrades.{N yO(X` hp x (#%'0*,.8135@8:pN yO (ԍ47 U.S.C.  544(b).> In addition, Section 611 of the Communications Act affirms the ability of an LFA to establish  x\and enforce franchise provisions concerning facilities and equipment related to PEG channels and for  xeducational and governmental use of channel capacity on institutional networks. Section 621(a)(3)  xXauthorizes franchising authorities to ensure access to cable services throughout the franchise area,  x`regardless of the income levels of potential residential subscribers. Section 621(a)(4) authorizes the LFA  xto require adequate assurance of the cable operator's financial, technical, and legal qualifications to  xpprovide cable service. Section 621(b)(3)(D) allows an LFA to require institutional networks. Section  x`626(b)(2) states that, subject to Section 624, a franchise renewal proposal "shall contain such material as  xthe franchising authority may require, including proposals for the upgrade of the system." Section  x~632(a)(2) enables an LFA to establish and enforce "construction schedules and other constructionrelated  S( x`performance requirements."p|N yO(ԍ47 U.S.C.  531, 541(a)(3), (4), (b)(3)(D), 546(b)(2), 552(a)(2).p The Commission likewise has long acknowledged areas of local concern,  xsuch as studio capacities, electrical safety codes, construction requirements, and management of public  S( xrightsofway.~ N {O<( xԍSee Review of the Technical and Operational Requirements of Part 76, Cable Television, Report and Order,  {O( x102 FCC2d 1372, 1380 n.12 (1985); TCI Cablevision of Oakland County, Inc., 12 FCC Rcd 21396, 21441 (1997),  {O( xreconsideration denied, 13 FCC Rcd 16400. In TCI Cablevision, the Commission also found that a city condition  xdthat cable construction permits would not be used for telecommunications purposes did not violate Section 624(e)  xjbecause the condition concerned the nature of services the cable operator would be providing over its facilities  x2pursuant to its cable franchise rather than either the transmission technology or subscriber equipment used for the services. 12 FCC Rcd at 2143032. Local governments perform a range of vital tasks necessary to preserve the physical  xintegrity of streets and highways, to control the orderly flow of vehicles and pedestrians, and to manage  xfacilities that crisscross the streets and public rightsofway, which are unaffected by Section 624(e). The  x1996 Act also does not preclude LFA review of the adequacy of the cable operator's plans for meeting the cablerelated needs identified by the LFA.  S( `  143. ` ` Although this Order clarifies to some extent the meaning of "transmission technology" for  xpurposes of Section 624(e), we recognize that over three years have passed since the 1996 Act was signed  xRinto law. We also recognize that, in the absence of a final federal rule, local franchise authorities and  xcable operators have entered into agreements based on their own understandings of the language of Section"(>R ,`(`(88"  x624(e). In the absence of today's guidance, parties may have drafted certain franchise provisions in a way  xHthat they believed was permissible under Section 642(b), but that now would be found impermissible  S( xunder our reading of Section 624(e). Had the parties had the benefit of today's Order, these provisions  xcould have been drafted in a way that would have permitted local authorities to exercise their legitimate  xrights under Section 624(b) without running afoul of Section 624(e). We have received no formal  xpcomplaints from any party claiming Section 624(e) has been violated. Given these settled contractual  S( xarrangements, nothing in this Order is intended automatically to preempt or affect the enforceability of  S(existing franchise agreements.Af N {OT( xԍSee, e.g., Pan American Life insurance Co. v. Blue Cross and Blue Shield, 127 F.3d 1099 (4th Cir. 1997)  x,(unpublished disposition, per curium) (finding that voluntary agreement was enforceable, even if agreement was based  {O ( xRon parties' mistaken belief that ERISA did not preempt state statute); E. Norman Peterson Marital Trust v.  {O (Commissioner of Internal Revenue, 78 F.3d 795 (2d Cir. 1996):   XXIf the particular language used in a statute is highly susceptible to misunderstanding by a lay person, and   fif the clarification which the regulations are intended to provide is available only after ordinary people have   made choices in reliance on the more common meaning of the statutory term, it might be a situation of such   vsubstantial unfairness would arise that it would be permissible to apply the latecoming regulations only prospectively.(# 78 F.3d at 800. A  S( VIII.PRIOR YEAR LOSSES   SL (  A.` ` Background  S ( ` ~144.` ` Section 301(k)(1) of the 1996 Act amended Section 623 of the Communications Act to  xpreclude the disallowance of certain losses incurred by original franchisees prior to September 4, 1992. Specifically, the statute provides:  ` XX` ` (n) Treatment of Prior Year Losses. Notwithstanding any other  ` Fprovision of this section or of section 612, losses associated with a cable  ` system (including losses associated with the grant or award of a  ` nfranchise) that were incurred prior to September 4, 1992, with respect to  ` a cable system that is owned and operated by the original franchisee of  ` vsuch system shall not be disallowed, in whole or in part, in the  ` determination of whether the rates for any tier of service or any type of  SD(equipment that is subject to regulation under this section are lawful.D N yO (X` hp x (#%'0*,.8135@8:provide that a cable operator may refuse to transmit any leased access or public access programming  S( xcontaining "obscenity, indecency, or nudity."N {Ox(ԍ1996 Act  506(a), (b), 110 Stat. 13637, codified 47 U.S.C.  531(e), 532(c)(2). In the Order, the Commission amended Sections 76.701  x0and 76.702 of the Commission's rules concerning leased access and PEG access, respectively, to  S( x.incorporate these amendments.ZN {O (X` hp x (#%'0*,.8135@8:changes using any reasonable written means at its sole discretion. Notwithstanding  FSection 623(b)(6) or any other provision of this Act, a cable operator shall not be required  to provide prior notice of any rate change that is the result of a regulatory fee, franchise  fee, or any other fee, tax assessment, or charge of any kind imposed by any Federal  Bagency, State, or franchising authority on the transaction between the operator and the  S(subscriber.N {O$(X` hp x (#%'0*,.8135@8: