WPCK 2M BR Z CG Times Roman#|ws BoldXw PE37XPHP LaserJet 4SiHPLAS4SI.PRSXw P7\F WXP|D8D\dDXdXdXDdd88d8ddddDL8ddddX`(`lD4l\DDD4DDDDDDDDd8XXXXXX|X|X|X|XD8D8D8D8ddddddddddXdbdddpdXXXXXlX~|X|X|X|XdddldldD8DdDDDdplld|8|P|D|D|8dvddddDDDpLpLpLpl|T|8|\ddddddl|X|X|Xd|DdpL|Dd~4ddC$CWxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxNHxxH\dDXddddd8@d<@d<DDXXdDDxddzHxxHvppDXd<"dxtldpxxdӊ 4SiHPLAS4SI.PRSXj\  P6G;\F WXP2  'ӊCG TimesCG Times BoldCG Times Italicable)#|w2 ZX_X5 ̹HP LaserJet III [WA-HS]MCHPIII.PRSXw P7,\,f dtXP`8wC;,}Xw PE37XPaTdY,o PE37PDbSdY, _ pi7D7zC;, EXz_ pi7X`8wC;,}Xw PE37XPaTdY,o PE37PDbSdY, _ pi7Dc7zC;, EXz_ pi7Xd6uC;,E:Xu&_ x7XXes-_5/,]_ PE37P`8wC;,}Xw PE37XPfDPG,! PE37PDgBPG, eR_ pi7 D5u@9, ?u_ pi7?zzzzzzzzzzzzCs~CzCddYCxl8wC;,+Xw P7XPlTdY,˽ P7PSdY,_ p^729)Z IKf `8wC;,}Xw PE37XPaTdY,o PE37PDbSdY, _ pi7Dc7zC;, EXz_ pi7Xd6uC;,E:Xu&_ x7XXs-_5/,]_ PE37P`8wC;,}Xw PE37XP`8wC;,}Xw PE37XPaTdY,o PE37PDbSdY, _ pi7Dc7zC;, EXz_ pi7X d6uC;,E:Xu&_ x7XXes-_5/,]_ PE37P`8wC;,}Xw PE37XPfDPG,! PE37PDgBPG, eR_ pi7 D5u@9, ?u_ pi7? gBPG, eR_ pi7 Dt,b5/, b_ pi7 c7zC;, EXz_ pi7X ddddudSuSSdduuuuuuuSSSSSSSSSSSSddddx"i~'K2^/5JPP|555P5555PPPPPPPPPP55Gtenve_tv5>qevt\tkVevttth555PP5GPGPG5PP,,P,|PPPP;>,PPtPPGGPGP*PPPPP5PPPPPPPPP,tGtGtGtGtGknGeGeGeGeG5,5,5,5,vPtPtPtPtPvPvPvPvPtPtGvPtPtPtPvP\PtFtPtFmFmFnPnPv`cFePePcFtPtPtPtPtPvPvP5,PPPP5PuYPPqPc-c:ePf0c-vP]vPvPsPtPtj:j:kPV=V=V=VPc:c-ePvPvPvPvPvPvPttPfFfFfFvPePvPVPePtP`5PP555WxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxNtttPPP5GAAPPPPPP8PPPP855SSP))PPbbyPPtP_YY5SP8"ttPtSttP厎.P55tbtttttttttt5PtPYPtkP5PtGP\t|httttttttttJttttttkb|tD_tttttttPtttttttGttttGtttttttttttttttttttttttttttttttttttttttttttt5ttt5ttt5ttt5ttttttttttttttbeYbYkGe>hGvPtG5,qGkYYvGkPtGtb\PbPPeGtGkbtY|bbbtev5PtttbGbbbbu55PPPPtvPPPtttb5\PG5ؐJppZ`]mmVVjjvvsp}vvJv]VV3J3Jʀ}}}}}}}}M=f},,,,,,,,,,dddduuSuSSdduuuuuuuSSSSSSSSSSSSduudx",tB^ f ^;C]ddCCCdCCCCddddddddddCCY~~vCN~sk~CCCddCYdYdYCdd88d8ddddJN8ddddYYdYd4dddddCddddddddd8YYYYYY~Y~Y~Y~YC8C8C8C8ddddddddddYdddddsdXdXXXddx|X~d~d|XdddddddC8ddddCdoddd|8|H~d<|8dtddddHHdlLlLlLkd|H|8~ddddddddXXXd~ddkd~ddxCddCCCWxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxNdddCYQQddddddFddddFCChhd44ddzzdddvooChdF"dhd9dCCzCddoddCdYds]zUvdYYCCCCz~ozoY~NYdYC8YooYdYzsdzdd~YYzozzz~CdzYzzzzCCdddddddzCsdYC\   pxtll\tll@\@\`L27@f k)\?if 4",tB^ f ^Yd ddd dddddd, , dudddddSSSouS,NdS dSdSdSdSdSdTlZT llrrrlTddddW,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxNdzz  i idd NN,,,, dii",,,,,,,,,  ,,,  ,,,V' dd,,,,,, d, ,,d,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,ddddudSddddd,,8VnDVVbbJDDPD\> J2J>8 &>>,,,,,,,,`` 8888,,,,,,,,,,zz&&>>>r",tB^ f ^Yd ddd dddddd, , u,ddddiSdSud,NdS7uSuSuSuSrSuTxuSSrurxf,ddddW,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxNd%  i idd NN,,,, d^i",,,,,,,,,  ,,,  ,,,V' dd,,,,,, d, ,,d,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,dddduuSudddd,,8VnDVVbbJDDPD\> J2J>8 &>>,,,,,,,,`` 8888,,,,,,,,,,zz&&>>>r25Wf i@f K^ ",tB^ f ^;C]ddCCCdCCCCddddddddddCCdxN`xoCCCddCdoYoYFdo8Co8odooYNCodddYdddd4dddddCddddddddo8dddddYYYYYN8N8N8N8oddddooooddpddddxodddXXddXddXdddddooL8doddNorddo8PdN8ppoddXXdpLoNpLodPDdopoopodXYXodoodddCddCCCWxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxNdddCdUUddddddFddddFCCssd44ddzzddd~ooCsdF"dsd9dCCzCddoddCdYds`zUvdddCCCCzozoYNYYYN8YooYdYzzdzddYYzozzzNdzYzzzzCCdddddddzCzdYC\   pxtll\tll@\@\`L",tB^ f ^;C`ddCCCdCCCCddddddddddCCdxxxsCYoxxdoxxooCCCddCddYdY8dd88Y8ddddLL8dYYYLYdYd4dddddCddddddddd8xdxdxdxdxdYxYxYxYxYC8C8C8C8dddddddddoYxddddoYdxdxdxdxdXXddxxXxdxdxXdddddddD8ddddCdddddp8pHodp8p8dxddddxLxLxddLdLdLddpHp8odddddddodpLpLpLdoddddododxCddCCCWxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxNdddCd]]ddddddFddddFCCddd88ddzzdddkddCddF"ddd9dCCzCdzdoddCdYds]zUvdYYCCCCzzzozoYzNoYdYC8YooYdYzzdzddoYoYzzozzzzzCdoozYzzzzCCddddzdddooozCsdYC\   pxtll\tll@\@\`L2yf gWf b" f 3n",tB^ f ^;C]ddCCCdCCCCddddddddddCCY~~vCN~sk~CCCddCtenve_tv5>qevt\tkVevttthYdYd4dddddCddddddddd8YYYYYY~Y~Y~Y~YC8C8C8C8ddddddddddYdddddsdXdXXXddx|X~d~d|XdddddddC8ddddCdoddd|8|H~d<|8dtddddHHdlLlLlLkd|H|8~ddddddddXXXd~ddkd~ddxCddCCCWxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxNdddCYQQddddddFddddFCChhd44ddzzdddvooChdF"dhd9dCCzCddoddCdYds]zUvdYYCCCCt~ezbk~ehvtC5qkvktts\zb~etkt|zb~CdzYzzzzCCdddddddzCsdYC\   pxtll\tll@\@\`L",tB^ f ^GPoxxPPPxPPPPxxxxxxxxxxPPkP]PPPxxPkxkxkPxxCCxCxxxxY]Cxxxxkkxkx>xxxxxPxxxxxxxxxCkkkkkkkkkkPCPCPCPCxxxxxxxxxxkxxxxxxjxjjjxxjxxjxxxxxxxPCxxxxPxxxxCVxHCxxxxxVVx[[[xVCxxxxxxxxjjjxxxxxxPxxPPPWxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxNxxxPkbbxxxxxxTxxxxTPP||x>>xxxxxP|x!T"x}xExPPPxxxxPxkxofxkkPPPPk]kxkPCkkxkxxxkkPxkPPxxxxxxxPxkP8D%nZZB 3nMnMn..s[",tB^ f ^GPoxxPPPxPPPPxxxxxxxxxxPPx]sPPPxxPxkkTxCPCxk]Pxxxkxxxx>xxxxxPxxxxxxxxCxxxxxkkkkk]C]C]C]Cxxxxxxxxxxxxxjjxxjxxjxxxxx[Cxxx]xxC`x]Cxxjjx[][x`RxxjkjxxxxPxxPPPWxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxNxxxPxffxxxxxxTxxxxTPPx>>xxxxxPxT"xxExPPPxxxxPxkxsfxxxPPPPk]kkk]Ckkxkxxxkk]xkPPxxxxxxxPxkP8D%nZZB 3nMnMn..s[2[ f y f 1w ",tB^ f ^9@Y``@@@`@@@@``````````@@`sK\sj@@@``@`jUjUC`j5@j5j`jjUK@j```U````2`````@````````j5`````UUUUUK5K5K5K5j````jjjj``k````sj```TT``T``T`````jjI5`j``Kjn``j6M`K5kkj``TT`kIjKkIj`MA`jkjjkj`TUTj`jj```@``@@@WxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxN```@`RR``````C````C@@nn`22``uu```yjj@n`C"`n`7`@@u@``j``@`U`n\uRr```@@@@ujujUKUUUK5UjjU`Uuu`u``UUujuuuK`uUuuuu@@```````u@u`U@XksohhXohh=X=X\I{",tB^ f ^GPoxxPPPxPPPPxxxxxxxxxxPPx]sPPPxxPsK\sjxxxx>xxxxxPxxxxxxxxCxxxxxkkkkk]C]C]C]Cxxxxxxxxxxxxxjjxxjxxjxxxxx[Cxxx]xxC`x]Cxxjjx[][x`RxxjkjxxxxPxxPPPWxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxNxxxPxffxxxxxxTxxxxTPPx>>xxxxxPxT"xxExPPPxxxxPxkxsfxxxPPPPu]Kuuu]xkPPxxxxxxxPxkP8D%nZZB 3nMnMn..s["i~'K2^/5JPP555P5555PPPPPPPPPP55Ptkttk`||>M|kt|`|tYkttttk555PP5PYGYG8PY,5Y,YPYYG>5YPtPPGPPPP*PPPPP5PPPPPPPPY,tPtPtPtPtPttGkGkGkGkG>,>,>,>,tY|P|P|P|PtYtYtYtYtPtPtZ|P|PtPtP`YsPtPsPsFsFtPtPsmjFkPkPjF}P|P|P|P|P|Y|Y=,PYPP>Y\PP|Yj-j@kPk>k,sZsZtY}P|PvsFsFtPZ=Y>Z=YPj@j6kPtYsZtYtYsZtYttPjFkGjFtYkPtYYPkPtPm5PP555WxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxNtttPPP5PDDPPPPPP8PPPP855\\P))PPbbyPPtPeYY5\P8"ttPt\ttP厎.P55tbtttttttttt5PtPYPtkP5PtGP\t|nttttttttttMttttttkb|tD_tttttttPtttttttPttttPtttttttttttttttttttttttttttttttttttttttttttt5ttt5ttt5ttt5ttttttttttttttbkYbYkGk>kG|GtG>,|GkYYtGkP|GtbbPbPPkGtGkbtY|bbbtk|>P|ttbGbbbbu55PPPPt|PPPtttb5bPG5ؐJppZ`]mmVVjjvvsp}vvJv]VV3J3Jʀ}}}}}}}}M=f}2 f `b",tB^ f ^;C]ddCCCdCCCCddddddddddCCdxN`xoCCCddCtkttk`||>M|kt|`|tYkttttkdddd4dddddCddddddddo8dddddYYYYYN8N8N8N8oddddooooddpddddxodddXXddXddXdddddooL8doddNorddo8PdN8ppoddXXdpLoNpLodPDdopoopodXYXodoodddCddCCCWxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxNdddCdUUddddddFddddFCCssd44ddzzddd~ooCsdF"dsd9dCCzCddoddCdYds`zUvdddCCCCtkzbkkk|tN>|ktk|tzbzbktkt|zbNdzYzzzzCCdddddddzCzdYC\   pxtll\tll@\@\`L"i~'K2^$(8<><q*"xxxxWWxxxWWkkxxx"(#s 1  Y-XX` ` (a)` ` General principles ` p>"(#s 1  Y-XX` ` (b)` ` Preemption ` p>"(#s 1  Y`-XU__.2.Definitions p>"(#s 1  YI-XX` ` (a)` ` Affiliate ` p>"(#s 1  Y2-XX` ` (b)` ` Cable service ` p>"(#s 1  Y -XX` ` (c)` ` Independent video programming provider ` p>"(#s 1  Y -XX` ` (d)` ` Open video system ` p>"(#s 1  Y -XX` ` (e)` ` Open video system operator ("operator") ` p>"(#s 2  Y -XX` ` (f)` ` Subscriber ` p>"(#s 2  Y -XX` ` (g)` ` Other terms ` p>"(#s 2  Y-XU__.3.Eligibility p>"(#s 2  Yz-XX` ` (a)` ` Local exchange carriers ` p>"(#s 2  Yc-XX` ` (b)` ` Cable operators ` p>"(#s 2  YL-XX` ` (c)` ` Approval required ` p>"(#s 2  Y-XU__.4.Certification p>"(#s 2  Y-XX` ` (a)` ` Filing of open video system certification ` p>"(#s 2  Y-XX` ` (b)` ` Contents of certification ` p>"(#s 3  Y-XU__.5.Approval p>"(#s 4  Y-XX` ` (a)` ` Public notice ` p>"(#s 4  Y-XX` ` (b)` ` Public comment ` p>"(#s 5  Y}-XX` ` (c)` ` Facial completeness ` p>"(#s 5  Yf-XX` ` (d)` ` Time limit ` p>"(#s 5  YO-XX` ` (e)` ` Approval subject to conditions ` p>"(#s 5  Y8-XX` ` (f)` ` Review of approval ` p>"(#s 5  Y -XU__.6.Annual reports p>"(#s 5  Y-XX` ` (a)` ` Annual filing ` p>"(#s 5  Y-XX` ` (b)` ` Contents of annual report ` p>"(#s 5  Y!-XU__.7.Application of other regulations p>"(#s 6  Y"-XX` ` (a)` ` Application to open video system operators ` p>"(#s 6  Y#-XX` ` (b)` ` Application to open video system programmers ` p>"(#s 6  YR%-XU__.8.Open access p>"(#s 6  Y;&-XX` ` (a)` ` Open access principles ` p>"(#s 6";&0*''`'"Ԍ Y-XX` ` (b)` ` Acceptance of independent video programming providers ` p>"(#s 6  Y-XX` ` (c)` ` Determination of channel capacity ` p>"(#s 7  Y-XX` ` (d)` ` Limitations on channel capacity offered to programmers ` p>"(#s 8  Y-XX` ` (e)` ` Channel capacity assignable ` p>"(#s 8  Y-XX` ` (f)` ` Carriage of cable operators ` p>"(#s 8  Yv-XU__.9.Nondiscrimination in carriage arrangements p>"(#s 9  Y_-XX` ` (a)` ` Nondiscrimination principle ` p>"(#s 9  YH-XX` ` (b)` ` Types of capacity ` p>"(#s 9  Y1-XX` ` (c)` ` Program selection ` p>"(#s 9  Y -XX` ` (d)` ` Channel sharing ` p>"(#s 9  Y -XX` ` (e)` ` Marketing arrangements ` p"(#p 10  Y -XX` ` (f)` ` Technical information ` p"(#p 10  Y -XX` ` (g)` ` Financial requirements ` p"(#p 10  Y -XX` ` (h)` ` Other requirements ` p"(#p 10  Y-XU__.10.X` ` Rates ` p"(#p 10  Yy-XX` ` (a)` ` Reasonable rate principle ` p"(#p 10  Yb-XX` ` (b)` ` Establishment of carriage rates ` p"(#p 10  YK-XX` ` (c)` ` Change in carriage rates ` p"(#p 10  Y4-XX` ` (d)` ` Open pricing ` p"(#p 11  Y-XX` ` (e)` ` Uniform pricing ` p"(#p 11  Y-XX` ` (f)` ` Reasonable rate standard ` p"(#p 11  Y-XX` ` (g)` ` Correction of unreasonable rates ` p"(#p 11  Y-XX` ` (h)` ` De minimis differences ` p"(#p 12  Y-XU__.11.X` ` Fees In Lieu of Franchise Fees ` p"(#p 12  Y-XX` ` (a)` ` Fee obligation ` p"(#p 12  Y|-XX` ` (b)` ` Notice procedure ` p"(#p 12  Ye-XX` ` (c)` ` Computation of fees ` p"(#p 12  YN-XX` ` (d)` ` Limitation on fees ` p"(#p 13  Y7-XX` ` (e)` ` Payment of fees ` p"(#p 13  Y -XX` ` (f)` ` Designation of fees ` p"(#p 13  Y-  #XU__.12.X` ` Public, Educational, and Governmental Channels, Services, and  Y-Facilities ` p"(#p 13  Y -XX` ` (a)` ` Access obligation ` p"(#p 13  Y!-XX` ` (b)` ` Establishing access obligations ` p"(#p 13  Y"-XX` ` (c)` ` Updating access obligations ` p"(#p 14  Y#-XX` ` (d)` ` Measurement of access obligations ` p"(#p 14  Yh$-XX` ` (e)` ` Availability of access channels ` p"(#p 14  YQ%-XX` ` (f)` ` Conversion ` p"(#p 14  Y:&-XX` ` (g)` ` Unused PEG capacity ` p"(#p 14":&0*''`'"Ԍ Y-XX` ` (h)` ` Editorial control ` p"(#p 14  Y-XU__.13.X` ` Consumer protection ` p"(#p 15  Y-XX` ` (a)` ` Negative option billing prohibited ` p"(#p 15  Y-XU__.14.` ` Enforcement p"(#p 15  Yv-XX` ` (a)` ` Investigation ` p"(#p 15  Y_-XX` ` (b)` ` No right created by inaction ` p"(#p 15  YH-XX` ` (c)` ` Response to information requests ` p"(#p 15  Y1-XX` ` (d)` ` Remedies for violation ` p"(#p 16  Y -XU__.15.X` ` Dispute resolution ` p"(#p 16  Y -XX` ` (a)` ` Applicability ` p"(#p 16  Y -XX` ` (b)` ` Complaint ` p"(#p 17  Y -XX` ` (c)` ` Burden of proof ` p"(#p 17  Y -XX` ` (d)` ` [General procedures may be added here if necessary] ` p"(#p 17  Y-XX` ` (e)` ` Time limit ` p"(#p 17  Yy-XX` ` (f)` ` Remedies ` p"(#p 17  YK-XU__.16.X` ` Review of open video system rules ` p"(#p 17  Y4-XX` ` (a)` ` Biennial review ` p"(#p 17  Y-XX` ` (b)` ` Purpose ` p"(#p 17  Y-XX` ` (c)` ` Notice and comment ` p"(#p 18  sN-  [Bracketed references to "NLC Comments" refer to Comments of the National League of Cities et al. in this docket, filed  sN-April 1, 1996.]"0*''C"     c< Part __. Open Video Systems   X- __.1. General provisions.  X- (a)` ` General principles. (#`  Yp- ` ` (1) Open video systems approved pursuant to this Part shall provide open access to independent video programming providers, subject to the provisions of this Part.  YB - ` ` (2) The Commission's rules under this Part shall be applied in a manner that   reflects federal partnership with state and local governments in the authorization and regulation of open video systems.  Y - Q` ` (3) Nothing in this part affects the authority of a state or local government to   manage the public rightsofway or to require fair and reasonable compensation from   telecommunications providers, on a competitively neutral and nondiscriminatory basis, for use   of public rightsofway on a nondiscriminatory basis, if the compensation required is publicly disclosed by such government.  Ys-  ] (b)` ` Preemption. Regulations under this Part shall not be interpreted to preempt state   or local laws affecting open video systems as long as such state or local laws may be applied consistently with the Commission's rules.  X- __.2.XDefinitions. (#  Y-  ] (a)` ` Affiliate. Any person that (directly or indirectly) owns or controls, is owned or   Zcontrolled by, or is under common ownership or control with a person is an affiliate of that person.  Yx-  } (b)` ` Cable service. "Cable service" shall have the same meaning as in the cable television rules, 47 C.F.R. 76.5(ff).  Y4-   (c)` ` Independent video programming provider. An independent video programming   =provider is a person that (1) provides video programming of its own selection directly to   subscribers over an open video system through a carriage agreement with the open video system   operator; and (2) has no financial or business relationship with an open video system operator or any affiliate thereof, other than a carrieruser relationship. [NLC Comments, pp. 79]  Y"-  | (d)` ` Open video system. An open video system is a facility, consisting of a set of   closed transmission paths and associated signal generation, reception, and control equipment that   + (i) is designed to provide cable service which includes video programming and which is provided   yto multiple subscribers within a community; (ii) affords open access to independent video   Lprogramming providers that are not affiliates of the open video system operator; and (iii)"g&0*'''"   -complies with the Commission's rules under this Part, as certified by the open video system operator and approved by the Commission.  Y-  l (e)` ` Open video system operator ("operator"). An open video system operator is   ,any person or group of persons (A) who provides cable service over an open video system and   directly or through one or more affiliates owns a significant interest in such open video system,   ;or (B) who otherwise controls or is responsible for, through any arrangement, the management and operation of such an open video system.  Y`-   (f)` ` Subscriber. A subscriber is a member of the general public who receives video programming distributed over an open video system and does not further distribute it.  Y3-   (g)` ` Other terms. Unless otherwise expressly stated, words not defined in this Part   shall be given their meaning as used in Title 47 of the United States Code, as amended, and, if not defined therein, their meaning as used in 47 C.F.R.  Y - __.3.XEligibility. [NLC Comments, pp. 4648](#  Y-  1 (a)` ` Local exchange carriers. LEC ELIGIBILITY A local exchange carrier, as defined in 47 U.S.C.   ,153(44), may be an open video system operator in its telephone service area. No person that is not a local exchange carrier may be an open video system operator.  Y9-   (b)` ` Cable operators. Notwithstanding subsection LEC ELIGIBILITY3(a), a cable operator may be an   Jopen video system operator only in a franchise area where (i) it is also a local exchange carrier and (ii) it is not a franchised cable operator.  Y-   (c)` ` Approval required. No person shall build or operate an open video system   unless and until the Commission has approved its certification pursuant to the provisions of this   Part. No person shall build or operate an open video system with respect to which the Commission's approval has been withdrawn, terminated, or nullified.  XU- __.4.XCertification. (#  X'- (a)` ` Filing of open video system certification.  Y- $` ` (1) A local exchange carrier that wishes to be an open video system operator   must file with the Commission a certification, pursuant to the requirements of this Section, that the LEC complies with the Commission's regulations under this Part.  Y - ` ` (2) An open video system certification and attachments shall be submitted both   in paper form, including an original and ___ copies, as provided in the Commission's rules, and   on a 3.5inch diskette formatted in an IBMcompatible form using MSDOS 5.0 or higher and   WordPerfect 5.1 software. The diskette should be submitted in "read only" mode. The diskette   shall be clearly labelled with the LEC's name and the legend "Open Video System Certification." "A&0*''`'"Ԍ X- (b)` ` Contents of certification. CONTENTS OF CERTIFICATION  Y- ` ` (1) An open video system certification shall include the following basic information:  Y- ` `  (A)The legal name of the proposed open video system operator   L("applicant"), entity identification or social security number, and corporate form (such as individual, private association, partnership, or corporation).  Yv- ` `  (B)The assumed name(s), if any, to be used by the open video system operator for doing business.  YH- c` `  (C)The name, address, telephone and facsimile numbers, and (where   available) electronic mail address of the applicant, and the identity of the person or persons responsible for communications with the Commission regarding the certification.  Y - ` `  (D)A list of all communities to be served by the proposed open video   system, including the name and community unit identifier of each community and the county or counties in which it is located.  Y - ` `  (E)The date on which the applicant proposes to commence providing service in each community.  Y- ` `  (F)The name of any local exchange carrier with which the applicant   is affiliated and a certification that the applicant is a local exchange carrier certified under all   applicable state and local law throughout the area where the proposed open video system is to be constructed.  Y4- ` ` (2) A certification shall state that the proposed open video system will be built and operated in compliance with this Part and all other applicable law.  Y- o` ` (3) A certification shall be accompanied by evidence sufficient to show on its   face, for each community where the proposed system will use the public rightsofway, that the   applicant has obtained authorization to use such rightsofway for purposes of the proposed open   video system. Such evidence shall be provided in one of the following two forms: [NLC Comments, pp. 50, 52, 70]  Y- E` `  (A)The applicant shall attach a fully executed document specifically   wgranting authority to use such rightsofway, including all pertinent agreements and conditions,   wand specifying the scope of the authority granted with regard to the uses that the applicant may make of the rightsofway; or  Y7- ` `  (B)The applicant shall attach a fully executed document in which the   state or local government unit having authority to grant permission to use the public rightsof Y -way for open video system purposes certifies that such authorization has been granted.v  Y -  ԍ[If the Commission adopts rules allowing cable operators to become open video system operators, the following additional subsection should be added:] [NLC Comments, pp. 4850]  YT"- ` `  (C):This subparagraph number is literal, not automatic.:If the applicant is a cable operator, the certification shall be   : accompanied by a document in which the state or local government unit having authority to grant   permission to use the public rightsofway for open video system purposes consents to the applicant's approval as an open video system operator in that community." 0*''"Ԍ Y- o` ` (4) A certification shall be accompanied by evidence sufficient to show on its   face that the applicant will meet all applicable obligations pursuant to 47 U.S.C. 531, 534,   and 535. Such evidence with regard to 47 U.S.C. 531 shall be provided in one of the following two forms: [NLC Comments, pp. 7172]  Y- c` `  (A)The applicant shall attach fully executed documents in which the   Kfranchising authority for each jurisdiction in which the proposed open video system will be   constructed certifies that the applicant has agreed to fulfill the same obligations under 47 U.S.C.   : 531 as any incumbent cable operator in each such franchising authority's jurisdiction, including any future changes in such obligations; or  Y1- ` `  (B)The applicant shall attach a fully executed document in which the   Kfranchising authority for each jurisdiction in which the proposed open video system will be   constructed certifies that the applicant has, after negotiation with such jurisdiction, agreed to   fulfill equivalent obligations no greater or lesser than those applicable to any incumbent cable   Joperator in each such franchising authority's jurisdiction, including any future changes in such obligations.  Y - ` `  (C)The applicant will provide separate written certification that it has agreed to the arrangement set forth in subparagraph (A) or (B), as appropriate.  Yy- ` ` (5)PROVIDER LISTING A certification shall be accompanied by a listing of all video programming   providers that will initially provide video programming on the proposed system, indicating    clearly those providers that are independent video programming providers as defined in this Part.  Y4-  Such listing shall demonstrate on its face that the criteria specified in section YARDSTICK CRITERIA10(f) of this Part are met.  Y- ` ` (6)$CERTIF INCL CARRIAGE AGREEMENTS$ A certification shall be accompanied by the applicant's complete carriage   agreement with each independent video programming provider. The applicant shall certify to   jthe Commission that each such carriage agreement is complete and that there are no other   <agreements or arrangements of any kind that, in the judgment of a reasonable person, might affect the terms, conditions, profitability or desirability of any such carriage agreement.  Xe- __.5.XApproval. (#  X7- (a)` ` Public notice.  Y - ` ` (1) When an open video system certification is received, the Commission will,   [by noon on the day following receipt, make such certification (including all attachments) available for public copying, review and comment "  Y-` `  (A)` in paper form in the Commission's public reference room;(#  Y - c` `  (B)` in electronic form on the Commission's Internet server for access and retrieval at least by ftp, gopher, and World Wide Web.(#  Y"- ` ` (2) The Commission will maintain an electronic mailing list for notice of open   Zvideo system certifications. The Commission will add to the mailing list any person who so   requests. When a certification is filed, the Commission shall send an electronic mail message   within 24 hours of receipt notifying all persons on this mailing list of such receipt and listing the applicant, the date of receipt, and the communities to which the certification applies.":&0*''`'"Ԍ Y-  ԙ (b)` ` Public comment. The Commission shall receive and review all comments submitted with regard to a certification.  Y-   (c)` ` Facial completeness. Upon receipt of a certification, the Commission will   promptly determine whether the certification contains the information and attachments specified   by this Part. If the certification is incomplete, the Commission will so notify the applicant   Ywithin ten days of receipt, and shall reject the certification without prejudice to the applicant's resubmission with the required information.  Y3-  # (d)` ` Time limit. The Commission shall act by order to approve, disapprove, or   disapprove as incomplete any open video system certification within ten days after receipt of   hsuch certification. Any disapproval shall be without prejudice to any later resubmission by the applicant.  Y -  _ (e)` ` Approval subject to conditions. Any approval of an open video system   certification will be expressly made subject to the following conditions: [NLC Comments, p. 72]  Y}- ` ` (1) The open video system operator must continue to comply with all requirements of this Part and other applicable law.  YO- ` ` (2) The open video system operator must obtain and maintain in force all   wnecessary authorizations to use public rightsofway for the open video system, and shall notify the Commission as soon as possible if any such authorization should terminate for any reason.  Y - ` ` (3) The open video system operator must make all payments in lieu of franchise fees pursuant to 47 U.S.C. 573(c)(2)(B) in timely fashion.  Y- ` ` (4) The open video system operator must continue to provide all channel   capacity, facilities, and services required pursuant to 47 U.S.C. 531, including any changes in such requirements occurring after the date of approval.  Y- o` ` (5) An open video system operator shall report any noncompliance with these  Y-requirements to the Commission as soon as possible upon discovery of such noncompliance.  YR-   (f)` ` Review of approval. Any approval by the Commission shall be subject to review and withdrawal or decertification at any time pursuant to the provisions of this Part.  X- __.6.Annual reports.  Y -   (a)` ` Annual filing. An open video system operator shall file an annual report with   the Commission within sixty days after each anniversary of the Commission's approval of its   certification. The Commission will publish notice of each such filing, and the annual reports will be made available for public review.  YW%- (b)` ` Contents of annual report. Each annual report shall contain:"W% 0*''p&"Ԍ Y- ` ` (1) any changes during the preceding year in the information required to be submitted with the operator's certification pursuant to section #CONTENTS OF CERTIFICATION4(b)#;  Y- ` ` (2) an uptodate list of all video programming providers, demonstrating on   its face that the criteria specified in section YARDSTICK CRITERIA10(f) of this Part are met. If either criterion is no   longer being met, the operator shall submit a complete explanation and detail any plans to restore the required condition;  Yv-` ` (3) a schedule summarizing all rates charged in all carriage contracts;  Y_- ` ` (4) a description of any changes in local cable franchise requirements of which open video system operator is aware;  Y1-  ` ` (5) financial information, including financial statements certified as true and   yaccurate, for any affiliate that selects programming on the open video system (and for the   Yoperator itself if it selects such programming), sufficient to allow the Commission to determine   the cash flow and rate of return for each such affiliate (or for the operator itself if it selects such programming). [NLC Comments, p. 1920]  X- __.7.XApplication of other regulations. (#  Yb-  k (a)` ` Application to open video system operators. The following provisions of Part   <76 that apply to cable operators shall also apply to open video system operators: Subpart A   J(General); Subpart D (Carriage of Television Broadcast Signals); Subpart E (Equal Employment   Opportunity Requirements); Subpart O (Competitive Access to Cable Programming); Subpart   hQ (Regulation of Carriage Agreements); 76.503 (National subscriber limits); 76.504 (Limits   hon carriage of vertically integrated programming); 76.610, 76.611, 76.613, 76.614, 76.615,   h76.616, and 76.617 (relating to signal leakage and harmful RF interference). [NLC Comments, p. 44]  Y-    (b)` ` Application to open video system programmers. The provisions of Subpart F   of Part 76 that apply to cable operators shall also apply to any person that selects video programming for distribution over an open video system.  X"- __.8.XOpen access OPEN ACCESS SECTION(#  X- (a)` ` Open access principles.  Y- $` ` (1) Except as otherwise expressly permitted in applicable law or in this Part,   wan open video system operator shall not discriminate among video programming providers with   regard to carriage on its open video system, and its rates, terms, and conditions for such carriage shall be just and reasonable, and shall not be unjustly or unreasonably discriminatory.  Xj$- (b)` ` Acceptance of independent video programming providers.  YS%- ` ` (1)PROPORTIONAL ALLOCATION If the demand of video programming providers for carriage capacity   exceeds the channel capacity available for such carriage on an open video system (not including"<& 0*''`'"   jsuch channel capacity as is programmed by the open video system operator or an affiliate   <pursuant to this Part) at the time of certification, capacity shall be assigned to all requesting   Lprogrammers that are qualified pursuant to subsections  FINANCIAL REQUIREMENTS9(g)  and OTHER REQUIREMENTS9(h) herein, based on the proportion of the requested capacity to the total capacity available. [NLC Comments, p. 23]  Y- ` ` (2) At any time when less than two thirds of the channel capacity on the   system is occupied by independent video programming providers, any such programmer   requesting carriage that is qualified pursuant to subsections  FINANCIAL REQUIREMENTS9(g)  and OTHER REQUIREMENTS9(h) herein must be given   ;carriage within thirty days of its request, whether or not such carriage would require the open video system operator to reduce the channel capacity it is using itself. [NLC Comments, p. 23]  Y1- ` ` (3) No entity shall be considered an independent video programming provider   wif it has any financial or business relationship whatsoever, by contract or otherwise, directly or   indirectly, with the open video system operator or any affiliate thereof, except only the carrieruser relationship. [NLC Comments, p. 22]  Y - NOTE 1: Examples of situations in which an open video system operator and a  3video programming provider will be deemed to be controlled or having a  relationship include the following, among others: where one is the debtor  ~or creditor of the other (except with respect to charges for communication  Bservices); where they have a common officer, director, or other employee  at the management level; where there is any element of ownership or  other financial interest by one in the other; where any party has a financial  interest in both; and where the open video system operator selects, or   influences the video programming provider, directly or indirectly, in selecting, programming carried on the open video system.(#  Y- NOTE 2: An open video system operator may provide billing and collection services   bfor an independent video programming provider in connection with   carriage on its system without exceeding the carrieruser relationship. [NLC Comments, p. 22](#  XN- (c)` ` Determination of channel capacity.  Y7- ` ` (1) If an open video system carries both analog and digital signals, an open   kvideo system operator must satisfy the access requirements of section YARDSTICK CRITERIA10(f) of this Part independently with regard to both analog and digital channel capacity. [NLC Comments, p. 14]  Y-` ` (2) For purposes of channel capacity calculations under this Part:  Y-  ` `  (A)` channels that the operator is required to carry pursuant to 47  Y - sU.S.C. 531, 534, and 535 shall count neither as part of the  Y!- 7total channel capacity, nor as part of the channel capacity for  Vwhich the operator selects video programming services for carriage; and(#  Yh$- ` `  (B)` any channel shared pursuant to section SHARED CHANNELS9(d) of this Part shall count   as part of the channel capacity for which the open video system   operator selects video programming services for carriage, to the":& 0*''`'"  rextent that the operator is one of the programmers sharing such a  channel. For example, if three programmers on an open video  6system offer channel A to their subscribers, and one of the three  6is an affiliate of the open video system operator, then channel A  shall count as 1/3 of one channel for which the operator selects video programming services for carriage.(#  Yv- R` ` (3) An open video system operator may increase carriage capacity without   limit and without prior approval by the Commission, provided that in the event of such an   yincrease, the open video system operator shall meet all capacity requirements of this Part,   including but not limited to the requirements of sections OPEN ACCESS SECTION8,  NONDISCRIMINATION SECTION9 , and RATE SECTION10, within sixty days after activation of such increased capacity. [NLC Comments, p. 8 n.7]  Y - ` ` (4) To the extent that the carriage capacity of an open video system is not   subject to calculation in terms of channels (for example, in a system transmitting video   programming via a packetswitched network), the access requirements of section YARDSTICK CRITERIA10(f) of this   Part shall apply to any features of the system that could limit a video programming provider's   Jability to provide video programming to subscribers, such as input ports, switches, and storage capacity. [NLC Comments, p. 2425]  Xb- (d)` ` Limitations on channel capacity offered to programmers.  YK- ` ` (1) An open video system operator may not require an independent video   wprogramming provider to use or occupy any minimum channel capacity less than one halfhour,   but shall make capacity freely available to such providers on singlechannel and parttime bases. [NLC Comments, pp. 2728]  Y- q` ` (2) An open video system operator may not set a limit on the amount of   channel capacity available to any independent video programming provider that is less than one  third of the activated channel capacity on its system, except to the extent necessary to satisfy the proportional allocation requirements of section $PROPORTIONAL ALLOCATION8(b)(1)$ of this Part. [NLC Comments, p. 1415]  Y- ` ` (3) An open video system operator may not require a minimum contract period   of more than one month from any independent video programming provider, nor require a   jmaximum contract period of less than one year, but shall make available flexible contract arrangements to encourage carriage by independent video programming providers.  Y -  \ (e)` ` Channel capacity assignable. Any independent video programming provider that   obtains channel capacity from an open video system operator under any arrangement shall be   ;freely able to assign, sublease, or otherwise transfer to any other person ("sublessee") the right   -to select programming for that channel and to act as a video programmer thereon. No open   Kvideo system operator shall place any conditions, directly or indirectly, on such rights of an   windependent video programming provider, except that any sublessee may be required to comply   with any technical or similar requirements that the open video system operator imposes on all programmers including itself and its affiliates. [NLC Comments, p. 24]  YR%-  ~ (f)` ` Carriage of cable operators. A cable operator may not provide video   [programming through an open video system in any area where the cable operator holds a"<& 0*''`'"   franchise to provide cable service through a cable system, except to the extent such provision   is authorized by the Commission, consistent with the public interest, convenience, and necessity.   A cable operator may seek such authorization by filing a petition for special relief pursuant to   section 76.7 of the Commission's rules, and the Commission shall act on any such petition on a casebycase basis. [NLC Comments, pp. 5152]  X_- __.9.XNondiscrimination in carriage arrangements. NONDISCRIMINATION SECTION(#  Y1-    (a)` ` Nondiscrimination principle. An open video system operator shall not   ;discriminate among video programming providers, including itself or its affiliates, with regard to carriage on its open video system.  Y -    (b)` ` Types of capacity. If an open video system carries both analog and digital   signals, an open video system operator must satisfy the nondiscrimination requirements of this   section independently with regard to both analog and digital channel capacity, and to any other   iportions using different formats (e.g., compressed), as well as with regard to the system as a whole. [NLC Comments, p. 14]  YM-    (c)` ` Program selection. An open video system operator shall not unreasonably   Ydiscriminate among video programming providers, including the operator itself or its affiliates, with regard to " [NLC Comments, p. 15]  Y -  E` `  (1) positioning in any channel sequence or accessibility through any navigational device, guide, or menu;(#  Y-  5` `  (2) any material or information (including advertising) provided by the  operator to subscribers for the purposes of selecting programming on the  open video system operator, or in the way such material of information is presented to subscribers;(#  Y- ` `  (3) identification of any programming service to subscribers. In particular,  Dan open video system operator shall ensure that video programming  providers and copyright holders can suitably and uniquely identify their   programming services to subscribers, and shall transmit without change  3or alteration any such identification that the video programming provider transmits as part of the programming signal.(#  Y-    (d)` ` Channel sharing. SHARED CHANNELS An open video system operator shall carry on only one channel   any video programming service that is offered by more than one video programming provider   (including the operator or its affiliate). If such channel sharing occurs, the open video system   operator shall ensure that subscribers to each video programming provider have ready and   immediate access, on a nondiscriminatory basis, to each such shared video programming service. [NLC Comments, p. 26] "U% 0*''p&"Ԍ Y-    (e)` ` Marketing arrangements. An open video system operator or its affiliate may   not offer to its subscribers programming carried by an independent video programming provider   on that system, provided, however, that an open video system operator or its affiliate may obtain   Kthe same programming independently and may offer it through a shared channel pursuant to subsection SHARED CHANNELS9(d). [NLC Comments, pp. 2526]  Yw-  ^  (f)` ` Technical information. An open video system operator shall make available   -publicly and on a nondiscriminatory basis all technical and similar information necessary to   ,enable video programming providers, including the operator itself and its affiliates, to provide video programming through the open video system.  Y -  @  (g)` ` Financial requirements. FINANCIAL REQUIREMENTS An open video system operator may not require an   xindependent video programming provider to satisfy financial requirements or to demonstrate   creditworthiness or financial stability, except that the operator may require an independent video   xprogramming provider to pay two months' carriage charges in advance as a security deposit.   [NLC Comments, p. 27] An open video system operator may not discriminate among independent video programming providers based on financial qualifications.  Ye-  ?  (h)` ` Other requirements. OTHER REQUIREMENTS An open video system operator may impose the following   requirements on video programmers, including the operator itself and its affiliates, on a nondiscriminatory basis:  Y!- ` `  (1) to provide reasonable evidence, prior to carriage, of its lawful access to   the programming that will be carried on the system, and to indemnify the operator against any costs resulting from unlawful carriage;  Y-` `  (2) to meet reasonable technical standards; and  Y- ` `  (3) to provide programming in a reasonably timely manner, so that channel capacity is not left unused.  Xi- __. 10.` ` Rates. RATE SECTION(#`  Y;-    (a)` ` Reasonable rate principle. An open video system operator shall set rates, terms,   and conditions for carriage that are just and reasonable, and are not unjustly or unreasonable   -discriminatory, both as between different independent video programming providers and as   between such independent video programming providers and the operator or its affiliates.   Carriage rates shall offer the widest possible opportunity for participation of independent video programming providers and for diversity of programming. [NLC Comments, p. 1516]  Y"-    (b)` ` Establishment of carriage rates. An open video system operator shall establish reasonable rates for carriage. [NLC Comments, p. 18]  YW%-  ?  (c)` ` Change in carriage rates. An open video system operator may change its rates   for carriage no more than once annually, subject to the provisions of this Part. Each"A&0*''`'"   independent video programming provider shall receive at least thirty days' advance notice of any increase in its carriage rates.  Y-    (d)` ` Open pricing. An open video system operator must make all agreements and   rates for carriage publicly available at all times, including all related terms and conditions as   zindicated in section ,CERTIF INCL CARRIAGE AGREEMENTS4(b)(6), of this Part. Any such agreements entered into after initial   certification must be filed with the Commission within fifteen days after execution. [NLC Comments, p. 18]  X2-  (e)` ` Uniform pricing.  Y - ` `  (1) An open video system operator must justify any differences in the rates,   terms, or conditions offered to video programming providers charged, including itself and its   waffiliates, at the time such arrangements are filed with the Commission. The open video system   operator must show that such differences are just, reasonable, and nondiscriminatory based on one or more of the following grounds: [NLC Comments, pp. 16, 18, 27]  Y -` `   (A)` the requirements of 47 U.S.C. 531, 534, and 535;(#  Y- )` `   (B)` the open video system operator's actual costs of providing carriage; and(#  Yc- ` `   (C)` reasonable discounts offered to nonprofit independent video programming providers.(#  Y5- ` `  (2) An open video system operator shall not impose different rates, terms, or   iconditions based on the content of the programming to be offered by any independent video programming provider.  Y-  ` `  (3)MFN CLAUSE Each carriage agreement with an independent video programming provider   kshall contain a "most favored nation" clause, pursuant to which the independent video   programming provider will receive the benefit of any more favorable rates, terms, or conditions   that the open video system operator offers to any other similarly situated programmer, including   itself or its affiliates. If such a clause is not included in a carriage agreement, the open video   wsystem operator shall provide a complete explanation at the time the agreement is filed with the Commission. [NLC Comments, p. 19]  Y8-    (f)` ` Reasonable rate standard. YARDSTICK CRITERIA An open video system operator's uniform carriage rates shall be presumed reasonable if: [NLC Comments, p. 20]  Y - ~` `  (1) at least four independent video programming providers provide service on the open video system; and(#  Y- ` `  (2) independent video programming providers occupy at least one third, in the aggregate, of the activated channel capacity on the open video system.(#   If these conditions are not met, an open video system operator's carriage rates shall be presumed   unreasonable and subject to investigation and to cost and rateofreturn analysis, either on complaint by any interested party or by the Commission on its own motion.  YS%-    (g)` ` Correction of unreasonable rates. If the Commission finds that an open video   system operator's carriage rates are unreasonable, the Commission may establish such operator's"=&0*''`'"   rates using a costbased method ensuring that the operator earns no more nor less than a   ireasonable rate of return. If, however, the Commission does not establish rates on this basis   within sixty days after the Commission finds the operator's rates to be unreasonable, the   ;operator must automatically reduce by ten percent all carriage rates that the Commission found   to be unreasonable. The operator shall then, within sixty days after the change in rates,   resubmit the information required in section PROVIDER LISTING4(b)(5) of this Part, together with any other   information necessary to show whether the criteria specified in section YARDSTICK CRITERIA10(f) of this Part have   =met, and the Commission shall reevaluate the operator's compliance on the basis of such resubmission.  Y -  !  (h)` ` De minimis differences. If the Commission finds that any differences in rates,   terms, or conditions among video programming providers (including the operator or its affiliates)   ,are de minimis or otherwise insignificant, then each video programming provider shall be able   to select, at its option, among such differing sets of conditions, and the operator must make such alternative arrangements available to it.  Xz- __. 11.` ` Fees In Lieu of Franchise Fees. (#`  YL-  0  (a)` ` Fee obligation. Subject to the provisions of this Part, any franchising authority   may require any open video system operator providing service in its franchising area to pay a   fee on the operator's gross revenues for the provision of cable service, in lieu of the franchise fees permitted under 47 U.S.C. 542.  Y-    (b)` ` Notice procedure. Prior to beginning service on an open video system, the   operator shall notify in writing each franchising authority in whose area the system will operate   that the franchising authority may require the operator to pay fees under this section. At any   time after such notice or after the commencement of service, the franchising authority may   notify the open video system operator that it requires such fees. When the franchising authority   gives such notice, it shall also notify the open video system operator in writing of the rate at   which the open video system operator must pay its fees, subject to the provisions of this Part,   \and of the rate at which franchise fees are imposed on any cable operator transmitting   programming in the franchise area. The franchising authority shall also notify the open video   system operator in writing of any change in the rate at which the open video system operator must pay its fees, subject to the provisions of this Part.  X -  (c)` ` Computation of fees.  Y!- ` `  (1) The franchising authority may require fees for an open video system   operator to be calculated on the same revenue base for which franchise fees are calculated for   any cable operator in the franchise area. Such revenues may include, without limitation, billings   ,to subscribers; late fees and administrative fees; fees, payments, or other consideration that the   joperator receives from video programming providers for carriage of programming on the"T%0*''p&"   xsystem; advertising revenues; and revenues from home shopping and bankathome channels. [NLC Comments, pp. 4546]  Y- ` `  (2) The franchising authority may require fees for an open video system   operator to be calculated using the same rate by which franchise fees are calculated for any cable operator in the franchise area.  Yv-    (d)` ` Limitation on fees. The rate at which a franchising authority imposes fees on   an open video system operator shall not exceed the rate at which it imposes franchise fees on any cable operator transmitting video programming in the franchise area.  Y -    (e)` ` Payment of fees. An open video system operator shall pay its fees on the same   basis as cable franchise fees are required to be paid in each franchise area, including with   respect to number and timing of payments and late fees or interest. If no cable operator is   [franchised to serve a given franchise area, the open video system operator shall negotiate payment arrangements with the franchising authority.  Y-  {  (f)` ` Designation of fees. An open video system operator may designate that portion   \of a subscriber's bill attributable to the fee under this section as a separate item on the subscriber's bill.  X - __. 12.` ` Public, Educational, and Governmental Channels, Services, and Facilities. (#`  Y-    (a)` ` Access obligation. ACCESS OBLIGATION A franchising authority may require an open video system   operator to provide channel capacity, services, facilities, and equipment ("access obligations")   pursuant to 47 U.S.C. 531, subject to the provisions of this Part. [NLC Comments, pp. 30, 3334]  X-  (b)` ` Establishing access obligations. ESTABLISHING ACCESS OBLS  Yi- ~` `  (1) An open video system operator's access obligations shall be independently determined under this subsection for each franchise area served.  Y;- ` `  (2) An open video system operator may meet the requirements of subsection ACCESS OBLIGATION12(a) in either of two ways, at the operator's option: [NLC Comments, pp. 3132, 3536]  Y - t` `   (A)MATCH OPTION` the open video system operator shall fulfill the same access  obligations as does the cable operator franchised to provide cable service in the franchise area; or [NLC Comments, pp. 3234](#  Y - ` `   (B)NEGOTIATE OPTION` the open video system operator shall reach an agreement with the  franchising authority to fulfil access obligations that are  &substantially equivalent to those of the cable operator franchised to  provide cable service in the franchise area. [NLC Comments, pp. 3537](#"l$0*''%"Ԍ Y-  p` `  (3) If no cable operator is franchised to serve any part of the area the open   video system will be authorized to serve, the open video system operator shall reach an agreement pursuant to subsection !NEGOTIATE OPTION12(b)(2)(B)!. [NLC Comments, pp. 3739]  Y-  N  (c)` ` Updating access obligations. If the access obligations of the cable operator to   which the open video system operator is compared pursuant to section #ESTABLISHING ACCESS OBLS12(b)# change, the open   video system operator's obligations shall change in the same way, to the same degree, and according to the same schedule for implementation. [NLC Comments, pp. 3233]  Y2-    (d)` ` Measurement of access obligations. Where channel capacity, services, facilities,   or equipment are required under this section, an open video system operator shall be obliged   under subsection MATCH OPTION12(b)(2)(A) to provide the same channel capacity, services, facilities, and equipment as the cable operator to which it is compared.  X -  (e)` ` Availability of access channels.  Y - ` `  (1) An open video system operator must make any public, educational, or   governmental ("PEG") access channels carried on the open video system available to all persons served by the open video system, whether or not they receive any other services.  Yd- a` `  (2) An open video system operator must provide to each franchise area the   PEG access channels required by its franchising authority, and may not fulfill its access   Jobligations by substituting other channels, including PEG access channels from other franchise areas. [NLC Comments, pp. 4041]  Y- o` `  (3) At the request of the franchising authority, an open video system operator   land a cable operator shall interconnect their systems in such a way that PEG access programming may be exchanged between the systems without degeneration.  Y- ` `  (4) An open video system operator may, if each affected franchising authority   wand cable operator consent, fulfill its obligations regarding PEG access by providing additional   support for the cable operator's PEG programming, so that any burden on the open video system   operator from such support is substantially equivalent to such corresponding burden on the cable operator, and carrying the resulting programming on the open video system.  Y9-  #  (f)` ` Conversion. To the extent that the open video system requires any special   formats or features (such as digitization or compression), the open video system operator must   make available any necessary conversion equipment or services without charge to enable PEG programming to be transmitted on the open video system. [NLC Comments, pp. 4344]  Y -    (g)` ` Unused PEG capacity. To the extent to which PEG channel capacity is required   pursuant to this section, the provisions of 47 U.S.C. 531(d) shall apply to an open video system.  Yl$-    (h)` ` Editorial control. An open video system operator shall not exercise any editorial control over any PEG use of channel capacity. "?&0*''`'"Ԍ  X- __. 13.` ` Consumer protection. (#`  Y-  ]  (a)` ` Negative option billing prohibited. The provisions of 47 C.F.R. 76.981(a) shall apply to any open video system. [NLC Comments, pp. 4445]  XI- __. 14.` ` Enforcement.  X - (a)` ` Investigation.  Y - b` ` (1) The Commission may investigate any potential violation of this Part either"  Y -` `  (A)` upon complaint by any person, or(#  Y -` `  (B)` at any time on its own motion.(#  Y - ` ` (2) In particular, and without limitation, the Commission will investigate under any of the following conditions:  Yz- ` `  (A)` It appears at any time that one or both of the conditions in section YARDSTICK CRITERIA10(f) of this Part are not met.(#  YL- T` `  (B)` It appears at any time that the open video system operator or any  6affiliate that provides programming on the system has suffered a  6loss or earned less than a reasonable rate of return for two years running. [NLC Comments, p. 20](#  Y- ` `  (C)` A contract for carriage lacks a "most favored nation" clause pursuant to section MFN CLAUSE10(e)(3) of this Part.(#  Y- ` `  (D)` Contracts for carriage contain inconsistent rates, terms, or  Fconditions without adequate explanation from the open video system operator.(#  Y}- ` `  (E)` The Commission becomes aware of any potential violation of this Part.(#  Y8-   (b)` ` No right created by inaction. No course of past practice or nonenforcement by   ,the Commission shall create any right in any open video system operator to continue or pursue   any practice or course of action. No open video system operator shall be relieved of its   obligation to comply with any of the provisions of this Part by reason of any failure of the Commission or any other person to enforce prompt compliance.  Y!-  \ (c)` ` Response to information requests. An open video system operator shall respond   Lpromptly and provide information requested by the Commission, whether before or after   Commission approval of a certification. An open video system operator shall be responsible for the continuing accuracy and completeness of information furnished to the Commission. "T%0*''p&"Ԍ Y-  " (d)` ` Remedies for violation. If the Commission finds that an open video system   operator has failed to comply with the Commission's rules or applicable law, such operator shall be subject to the following remedies:  Y-` ` (1) Decertification. [NLC Comments, p. 28](#  Y- ` `  (A)The Commission shall decertify an open video system operator that it finds to have knowingly committed a substantial violation.  Yw- ` `  (B)The Commission may decertify an open video system operator for repeated violations.  YI- c` `  (C)The Commission shall decertify an open video system operator if   it finds that such operator has sought to manipulate procedures under this Part or otherwise to evade the Commission's regulations or applicable law.  Y - S` `  (D)Before decertifying an open video system operator, the Commission   shall afford such operator a full opportunity to respond to all claimed violations, pursuant to the   \Commission's rules. At least thirty days prior to any decision by the Commission, the   Commission shall publish public notice, sending a copy of such notice to all franchising   authorities in whose franchise areas the open video system operates. The Commission shall accept and review all comments submitted in connection with such decertification proceedings.  Yz- ` `  (E)If the Commission decertifies an open video system operator, such   operator must within 180 days obtain cable franchises pursuant to Title VI of the   JCommunications Act of 1934, as amended, in any franchise areas where the open video system   operates. If such operator has not obtained a cable franchise in any such area, the operator shall   cease operations 180 days after decertification. This time period may be extended for a given franchise area by mutual agreement of the franchising authority and the operator.  Y- ` ` (2) The Commission may levy fines or forfeitures against an open video system operator for violations of this Part or applicable law.  Y- 3` ` (3) The Commission may impose or seek such other remedies against an open   video system operator, for violations of this Part or applicable law, as may fall within the Commission's general powers.  XO- __.15.` ` Dispute resolution. (#`  X!- (a)` ` Applicability. (#`  Y - ` ` (1) The Commission has authority to resolve disputes over carriage on an open  Y-  video system under 47 U.S.C. 573 and this Part  , including disputes regarding discrimination and carriage rates.  Y - a` ` (2) The Commission will not resolve issues in any such dispute that do not   arise under 47 U.S.C. 573, including, without limitation, issues relating to ownership, control,   or management of, or compensation for the use of, public rightsofway. [NLC Comments, p. 73]  Yi$- ` ` (3) Any aggrieved party may seek any other remedy available under applicable   law for any dispute arising under 47 U.S.C. 573 or this Part, and shall not be required to seek resolution by the Commission as a prerequisite to any such remedy or proceeding.";&0*''`'"Ԍ X-ԙ (b)` ` Complaint. (#`  Y- ` ` (1) A person wishing the Commission to resolve a dispute under this section   shall file a complaint with the Commission in accordance with the requirements of Part 1 of this chapter.  Y- C` ` (2) Any complaint shall include a certification by the complainant that the   complaint does not seek to have the Commission rule on issues relating to ownership, control,   or management of, or compensation for the use of, public rightsofway. [NLC Comments, p. 73]  YH- ` ` (3) Any complaint, and all subsequent pleadings and briefs, as well as all   ;letters, documents, or other written submissions, shall be served on the defendants, and on any   : franchising authority in whose franchise area any alleged violation may take place, or which may be affected by any such violation, on the same day on which they are filed at the Commission.  Y -  ? (c)` ` Burden of proof. In disputes under this section, the open video system operator   zshall have the burden of showing that its treatment of video programming providers is   nondiscriminatory, that its rates, terms, and conditions are just and reasonable and are not   wunjustly or unreasonably discriminatory, and that its treatment of video programming providers is otherwise in compliance with the requirements of this Part.  XL- (d)` ` [General procedures may be added here if necessary]  Y-  ] (e)` ` Time limit. The Commission shall resolve any dispute brought under this section within 180 days after the complaint is filed with the Commission.  Y-  N (f)` ` Remedies. In resolving a dispute under this section, the Commission may require carriage, award damages to any person denied carriage, or any combination of such sanctions.  X- __.16.` ` Review of open video system rules. (#`  YQ-   (a)` ` Biennial review. One year after the Commission's initial rules under this Part   itake effect, and every other year thereafter, the Commission shall review its rules under this Part.  Y-   (b)` ` Purpose. The Commission's review under this section shall be conducted to determine whether changes in the Commission's rules are necessary or would be advisable "  Y - ` ` (1) to ensure that open video system operators are prohibited from   discriminating among video programming providers with regard to carriage;(#  Y#- a` ` (2) to ensure that the rates, terms, and conditions for such carriage are just and reasonable, and are not unjustly or unreasonably discriminatory; or(#  YV%-` ` (3) otherwise to serve the public interest, convenience, and necessity.(# "?&0*''`'"Ԍ Y-   (c)` ` Notice and comment. As part of each review under this section, the Commission shall give public notice and invite public comments.  VCxWAFS1\44303.3\10425700010