June 20, 1994 Cable Television System Regulatory Fees The Federal Communications Commission issues this Public Notice in order to provide information concerning the payment of regulatory fees in 1994. If you are an operator of a cable television system or a licensee of a cable antenna relay service (CARS) or broadcast auxiliary service, you should carefully review this Public Notice. WHO MUST PAY REGULATORY FEES IN 1994 Cable television systems operating on or before December 31, 1993 must pay regulatory fees in 1994. Governments and nonprofit (exempt under Section 501 of the Internal Revenue Code) entities are exempt from paying regulatory fees and should not submit payment, but may be asked to submit a current IRS Determination Letter documenting its nonprofit status, or a certification of governmental authority. All cable television systems must pay regulatory fees of $0.37 per subscriber for each community unit in which it operates. Additionally, each system must pay a $220.00 fee for each CARS license held and, if applicable, a $25.00 fee for each Broadcast Auxiliary Service license held. WHY THE COMMISSION MUST COLLECT NEW FEES The new requirement to collect annual regulatory fees from cable television systems was contained in Public Law 103-66, "The Omnibus Budget Reconciliation Act of 1993." These new regulatory fees, which are likely to change each fiscal year, will be used to offset costs associated with the Commission's enforcement, public service, international and policy and rulemaking activities. The new fees are in addition to any application processing fees associated with obtaining a license or other authorization from the Commission. WHEN FEES WILL BE DUE All cable systems must pay the following regulatory fees to the Commission by August 12, 1994, in order to avoid a 25% late penalty: TYPE OF FEE REGULATORY FEE PAYMENT FEE CODE Cable System Subscriber Fee $0.37 per subscriber TOCN CARS License $220 per license TQCN Broadcast Auxiliary Services License $25 per license MUBN Please see "Special Instructions for Completing FCC Forms 159 & 159-C" for correct Payment Type Codes to use when making installment payments. FCC FORM 159 Regulatory fee payments must be accompanied by FCC Form 159 ("FCC Remittance Advice"). A copy of this form, with specific instructions, is attached to this Public Notice. Please see "Special Instructions for Completing FCC Forms 159 & 159-C" for detailed information on how to correctly complete these Forms. WHERE TO SEND REGULATORY FEE PAYMENTS All regulatory fee payments must be sent to the following address: Federal Communications Commission Regulatory Fees P.O. Box 358835 Pittsburgh, PA 15251-5835 METHOD OF PAYMENT Regulatory fee payments may be made by check, money order, or by credit card (Visa or Mastercard only). When paying by credit card, please make sure you sign the appropriate block of Form 159. Payments may also be made electronically provided prior approval has been obtained from the Commission. Contact Thomas M. Holleran at (202) 418-1925 for prior approval. NOTE: We encourage arrangements to consolidate regulatory fee payments for different entities into a single payment instrument by a single payee. We recognize the benefits to be gained by all the parties involved. Notwithstanding the scheduled payment due dates specified in this Public Notice, consolidation of 100 or more regulatory fees due from different entities by a single payee will be due on September 2 1994. Entities participating in such consolidated payment arrangements that are eligible, and choose, to pay by installment should pay one-half of the regulatory fee eligible for installment payment by September 2, 1994. The second installment payment will then be due September 30, 1994. Multiple fee payments may be made with one check, money order, credit card or electronic payment. Payors who will be making a single payment for a significant number of entities and wish to submit automated data submissions in lieu of a large number of FCC Forms 159-C ("Advice Continuation Sheets") should contact Thomas M. Holleran at (202) 418-1925 at least four weeks prior to the payment due date. INSTALLMENT PAYMENTS Cable television systems are permitted to make installment payments if their total subscriber fee (for all community units in which it is the franchisee or for all community units of a group of commonly- owned cable systems) exceeds $18,500. Fee payments for CARS or Broadcast Auxiliary Service licenses cannot be counted toward the $18,500 installment threshold. Eligible systems choosing to make installment payments must pay one-half of their total system fee by August 12, 1994. The regulatory fees for CARS and Broadcast Auxiliary Service license fees cannot be paid by installment; these fees must be paid in full by August 12, 1994. The second installment payment for the subscriber fee is due no later than September 9, 1994. Entities participating in consolidated payment arrangements that are eligible, and elect, to pay by installment should note the different due dates for their installment payments (see "Method of Payment" above). COMPLIANCE Cable television systems are solely responsible for accurately accounting for all CARS and Broadcast Auxiliary Service licenses, as well as subscribers within each community unit, and for paying the proper regulatory fees. Any omission or payment deficiency can result in a 25% monetary penalty, dismissal of pending actions, and/or revocation of any authorization. Additionally, the Commission will invoke its authority under the Debt Collection Act against any cable television system failing to meet its regulatory fee payment obligations. WAIVERS, REDUCTIONS AND DEFERMENTS OF REGULATORY FEES The Commission will consider requests for waivers, reductions or deferments of regulatory fees, in extraordinary and compelling circumstances only, upon a showing that such action overrides the public interest in reimbursing the Commission for its regulatory costs. Timely submission of the appropriate regulatory fee must accompany requests for waivers or reductions. This will ensure efficient collection in situations where a waiver or reduction is not warranted and will allow the requestor to avoid a 25% late-payment penalty if its request is denied. The regulatory fee would be refunded if the request is granted. Only in exceptional or compelling instances (where payment of the regulatory fee along with the waiver or reduction request could result in the reduction of service to a community or other financial hardship to the regulatee or licensee) will the Commission accept a petition to defer payment along with a waiver or reduction request. All requests for deferments must be filed before August 12, 1994, in order to avoid the 25% late-payment penalty. ADDITIONAL INFORMATION The Commission has prepared a number of informative Fee Filing Guides for information on application fees for cable services, and for information on application and regulatory fees for the common carrier, mass media, engineering and technology, field operations or private radio services. These Guides are available from the Commission's Public Service Division, from its various field office locations and can be downloaded from the Internet (ftp@fcc.gov). For additional information, please contact the Fees Hotline at (202) 632-FEES, or write to: Federal Communications Commission, ATTN: Public Service Division, 1919 M Street, N.W., Washington, D.C., 20554. FILING PROCEDURES FOR CABLE TELEVISION SYSTEMS Who Must Pay: Cable television systems operating on or before December 31, 1993 must pay the regulatory fee. Governments and nonprofit (exempt under Section 501 of the Internal Revenue Code) entities are exempt from paying regulatory fees and should not submit payment, but may be asked to submit a current IRS Determination Letter documenting its nonprofit status, or a certification of governmental authority. Fee Requirement: All cable televisions systems are subject to a fee of $0.37 per subscriber. Systems may also be required to pay a $220.00 fee for each Cable Antenna Relay Service (CARS) license it holds and a $25.00 fee for each Broadcast Auxiliary Service license it holds. A system's total subscriber fee can be determined by multiplying $0.37 times the number of subscribers within all community units in which it operates (as defined below and at page 2 of the Instructions for FCC Form 325 "Annual Report of Cable Television Systems"). Use the same number of subscribers as reported to the Commission during the 1993 Annual Report of Cable Television Systems - FCC Form 325 (see FCC News Release of April 13, 1994). You may pay for multiple community units with a single payment instrument as long as the community units are all part of the same cable system or are part of a group of commonly-owned cable systems. If this total subscriber fee is greater than $18,500, payment may be made in two installments (see "Installment Payments"). CARS and Broadcast Auxiliary Licenses Cable systems holding CARS licenses must pay a regulatory fee of $220.00 for each CARS license and, if applicable, a regulatory fee of $25.00 for each Broadcast Auxiliary Service license held. NOTE: One payment may be submitted for all regulatory fee obligations ("subscriber fees" and all Cable Antenna Relay Service and Broadcast Auxiliary Service licenses). Payment Due Date: All regulatory fee payments for cable television systems must be received by the Commission by August 12, 1994 (except the second installment payment for the subscriber fee which must be received by September 9, 1994. SPECIAL INSTRUCTIONS FOR COMPLETING FCC FORMS 159 & 159-C FCC Form 159 ("FCC Remittance Advice") and, as necessary, FCC Form 159-C ("Advice Continuation Sheet") must accompany all regulatory fee payments. Form 159 allows payors to report information on one or two payment items (e.g., multiple community units, CARS licenses, Broadcast Auxiliary Service licenses, or a combination of any two). Use Form 159-C to report additional community units or licenses. FCC Form 159 and 159-C have been attached to this Public Notice for you to complete and remit with your payment. You may make additional copies of the forms as required. In addition to the instructions for Form 159 (which are on the reverse side of the Form), the following information applies specifically to cable television payors: Block (12) - "FCC CALL SIGN/OTHER ID": o Enter your community unit identification number for reporting subscribers in each community unit within your system, or group of commonly-owned systems. o Enter your call sign for CARS or Auxiliary Service licenses. Block (14) - "PAYMENT TYPE CODE": TOCN: Use this code when paying a subscriber fee ($0.37 per subscriber). Please note that subscriber information must be provided for each community unit of which the system is the operator. TOC1: To be used ONLY for installment payments (an option when the total system subscriber fee exceeds $18,500). Use this code when making your first installment payment. Please note that subscriber information must be provided for each community unit of which the system is the operator. TOC2: To be used ONLY for installment payments (see above). Use this code when making your second installment payment. Please note that subscriber information must be provided for each community unit of which the system is the operator. TQCN: Use this code when making a regulatory fee payment for a CARS license ($220.00 per license). MUBN: Use this code when making a regulatory fee payment for a Broadcast Auxiliary Services license ($25.00 per license). Block (15) - "QUANTITY": For subscriber fees (payment type codes TOCN, TOC1 or TOC2) enter the number of subscribers within each community unit. For CARS or Broadcast Auxiliary Service licensees, enter "1" in this block. Block (16) - "AMOUNT DUE":  For subscriber fees (payment type code TOCN), multiply the amount in Block 15 ("Quantity") by $0.37 and enter the result here.  For subscriber fees with a payment type code of TOC1 or TOC2, multiply the figure in Block 15 ("Quantity") by $0.37 and then divide that amount by 2. enter the result here.  For CARS licenses (payment type code TQCN) enter $220.00.  For Broadcast Auxiliary Service licenses (payment type code MUBN) enter $25.00.  Round down to the nearest cent when applicable. Block (17) - "FCC CODE 1": LEAVE BLANK. Block (18) - "FCC CODE 2":  For subscriber fees only (i.e., payment type codes TOCN, TOC1 or TOC2): Provide the name of the community unit. - FCC -