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If you need the complete document, download the WordPerfect version or Adobe Acrobat version, if available. ***************************************************************** Before the Federal Communications Commission Washington, D.C. 20554 In the Matter of ) ) Implementation of Section 3 ) of the Cable Television ) Consumer Protection and ) Competition Act of 1992 ) MM Docket No. 92-266 ) Statistical Report on ) Average Rates for Basic ) Service, Cable Programming ) and Equipment ) ORDER Adopted: June 13, 1997 Released: June 16, 1997 By the Chief, Cable Services Bureau: Responses Due: August 1, 1997 1. On October 5, 1992, Congress enacted the Cable Television Consumer Protection and Competition Act of 1992 ("1992 Cable Act"). Section 623(k) of the Communications Act of 1934, as amended, requires the Commission to publish annually statistical reports on the average rates for basic cable service, cable programming service, and equipment for systems that are subject to effective competition and for systems not subject to effective competition. 2. In Section 623(k) of the Communications Act, Congress directed the Commission to prepare annual statistical reports on average prices "for basic cable service and other programming, and for converter boxes, remote control units, and other equipment" of systems subject to competition and systems not subject to competition. Under this provision, the report must compare rates of competitive systems with rates of noncompetitive systems. This information will be used to monitor cable prices and determine whether Congress's goal that the rates charged for basic and cable programming services by cable systems not subject to effective competition are reasonable compared to the rates charged by systems subject to effective competition. 3. To implement the requirements of Section 623(k), the Commission is directing certain cable operators to respond to a price survey questionnaire designed to solicit information concerning rates for basic and cable programming services, and equipment used to receive such services. A copy of this survey form is attached to this Order as Appendix A. 4. We are mindful of the need to limit administrative burdens associated with this price survey. We anticipate that the burdens faced by responding operators should be quite limited as the information requested is the type of data that should be readily available to operators without additional calculation. 5. The survey asks whether the operator is subject to effective competition and includes questions about the operator's regulatory status. The survey seeks information regarding the monthly charge for the basic service tier (BST) and cable programming services tiers (CPSTs), the monthly charge for equipment, installation fees, disconnect and reconnect fees, tier change charges, and charges for additional outlets. The survey asks for the number of subscribers taking each type of equipment and each tier of service, and also seeks information concerning new product tiers (NPTs) and leased access programming. The survey requires cable operators to provide each of these pieces of information as of July 1, 1996 and July 1, 1997. The survey also seeks information that would explain the causes of any changes in subscriber charges during the 12 month periods ending July 1, 1996 and July 1, 1997. 6. This survey form will be sent to a randomly selected group of cable community units to obtain the necessary information on a franchise basis. To effectuate comparisons between competitive and noncompetitive systems, the data will be collected from a randomly selected group of cable communities facing effective competition and a randomly selected group of cable community units not subject to effective competition. The group facing effective competition will include 192 franchise areas. The group not facing effective competition will include approximately 466 franchise areas. 7. The systems selected in our sampling of community units must complete and return the questionnaire no later than August 1, 1997, in accordance with the associated instructions. All data submitted in response to this survey will be considered part of the public record and will be provided upon request without identifying information. 8. In order to expedite the processing of survey submissions, the Commission strongly encourages operators to file their survey responses on diskettes. Filing on diskettes should ease the burden on both the Commission and respondents. A diskette which contains the complete price survey and instructions may be purchased from ITS (International Transcription Service) at (202) 857-3800. Minimum computer requirements are: an IBM P.C. compatible with a 386 or higher processor; 8 megabytes memory; and Windows 3.1 or greater. Instructions for the survey and the survey form are also available and may be downloaded from the Commission's internet site. We note that an internet connection is necessary in order to obtain the necessary information via internet. 9. Operators obtaining the survey either via internet or on diskettes are required to file on diskette. Completed diskettes must be mailed to the Cable Services Bureau, Attn. Price Survey, Federal Communications Commission, 1919 M Street, N.W., Washington, D.C. 20554. Operators filing on diskettes are also required to send a paper copy of their filings to the Commission. For those operators who cannot file on diskettes, a paper filing only will be accepted. If filing on paper, an original and two copies of the questionnaire must be filed with the Cable Services Bureau at the address indicated above. Regardless of the method selected for filing, responses must be received no later than August 1, 1997. 10. Accordingly, IT IS ORDERED, pursuant to Section 3 of the 1992 Cable Act (Section 623(k) of the Communications Act of 1934, 47 U.S.C. Section 543(k)), and Section 4(i) of the Communications Act of 1934, as amended, 47 U.S.C. Section 154(i), that cable systems subject to the price survey requirements described herein shall complete and return the questionnaire set forth in the attached Appendix A no later than August 1, 1997. FEDERAL COMMUNICATIONS COMMISSION Meredith J. Jones Chief, Cable Services Bureau APPENDIX "A" (1997 Price Survey) APPENDIX A INSTRUCTIONS FOR FCC ANNUAL CABLE INDUSTRY PRICE SURVEY General Information: The Cable Television Competition and Consumer Protection Act of 1992 (the 1992 Cable Act) requires the Commission to publish an annual statistical report on average rates for basic cable service, cable programming service, and equipment. The report must compare the prices charged by cable systems subject to effective competition with those that are not subject to effective competition. This survey is intended to collect the data needed to fulfill that statutory requirement. The survey form has been sent to cable operators serving selected community units to obtain the necessary information on a franchise basis. The questionnaire asks whether the operator is subject to effective competition and includes questions about the operator's regulatory status. The survey seeks information regarding the monthly charge for the basic service tier (BST) and cable programming services tiers (CPSTs), the monthly charge for equipment, installation fees, disconnect and reconnect fees, tier change charges, and charges for additional outlets. The survey asks for the number of subscribers taking each type of equipment and each tier of service, and also seeks information concerning new product tiers (NPTs) and leased access programming. The survey requests that cable operators provide each of these pieces of information as of July 1, 1996 and July 1, 1997. The survey also seeks information that would explain the causes of any changes in subscriber charges during the 12 month periods ending July 1, 1996 and July 1, 1997. Basic Service Tier (BST) is the package of channels (or tier) that includes signals from local television broadcast stations (such as affiliates of ABC, CBS, NBC, Fox, WB and UPN, independent stations, and noncommercial stations) and public, educational and governmental (PEG) channels. Cable Programming Services Tier (CPST) is any package or tier of channels other than BST or programming offered separately as pay-per-channel programming or pay-per-program services. For the purpose of this form, CPSTs do not include NPTs. An NPT is a type of CPST made up of channels that generally were not offered by the cable system prior to October 1, 1994. To be considered an NPT, a CPST must meet the conditions set forth in Section 76.987 of the Commission's rules, 47 C.F.R.  76.987. An NPT is not subject to general rate regulation rules. Responding Official: This survey should be completed by a company official familiar with the services offered by the cable system and the rates charged. When, Where, and How to File: In order to expedite the processing of survey submissions, the Commission strongly encourages operators to file their survey responses on diskettes. Filing on diskettes should ease the burden on both the Commission and respondents. A diskette which contains the complete price survey and instructions may be purchased from ITS (International Transcript Service) at (202) 857-3800. Minimum computer requirements are: an IBM P.C. compatible with a 386 or higher processor; 8 megabytes memory; and Windows 3.1 or greater. Instructions for the survey and the survey questionnaire are also available and may be downloaded from the Commission's internet site. We note that an internet connection is necessary in order to obtain the necessary information via internet. Operators obtaining the survey either via internet or on diskettes are required to file on diskette. Completed diskettes must be mailed to the Cable Services Bureau, Attn. Price Survey, Federal Communications Commission, 1919 M Street, N.W., Washington, D.C. 20554. Operators filing on diskettes are also required to send a paper copy of their filings to the Commission. For those operators who cannot file on diskettes, a paper filing only will be accepted. If filing on paper, an original and two copies of the questionnaire must be filed with the Cable Services Bureau at the address indicated above. Filing date is established pursuant to an implementing order. Confidentiality: All data submitted in response to this survey will be considered part of the public record and will be provided upon request without identifying information. If You Need Help: If you have any questions regarding either the content of the questionnaire or the method of filing, please call the FCC's Cable Services Bureau at (202) 418-7096, Monday through Friday, 9:00 a.m. to 5:30 p.m. Eastern Standard Time, for assistance. Please read all of the following instructions before completing the survey form. This is important to ensure that all operators use the same definitions for each question. Unless otherwise instructed, you are to provide data limited only to the franchise area indicated, even if the system which serves that franchise area also serves other areas. For question C3, however, provide the number of subscribers for the entire system, even if the system serves more than the franchise area covered by the survey. General Instructions: Please complete the attached questionnaire to the best of your ability using the following instructions: - This questionnaire requests information for the franchise area that includes the community unit to which this survey is addressed and whose community code or identification number (CUID) is identified on the address label. - This survey assumes that there is only one CUID for each franchise area. Occasionally, this assumption is incorrect and the franchise area contains more than one CUID. If the CUID for which you are being asked to complete this survey is in such a franchise area, complete the survey for the entire franchise area and not just the CUID area. Line Instructions: MODULE A: OPERATOR INFORMATION Line A1: Enter the local business name of your system. Line A2: If your system is owned by another entity, enter the name of your system's ultimate parent entity. Lines A3-A5: Enter the mailing address of your system. Line A6: Enter the community name for which you are completing this survey. If you are using the paper version of the survey, the community name will appear in the space provided. Line A7: Enter the CUID of the community for which you are completing this survey. If you are using the paper version of the survey, this number will already be entered in the space provided. MODULE B: CERTIFICATION Lines B1-B5: Enter the specific identification information requested for the person completing this questionnaire. The Commission may seek clarification through follow-up questions directed to this contact officer. The contact officer should keep a copy of the completed questionnaire in a convenient location. If you are filing electronically, a signed copy of this page must be filed with the Cable Services Bureau, Attn. Price Survey, Federal Communications Commission, 1919 M Street, N.W., Washington, D.C. 20554. MODULE C: PENETRATION INFORMATION Answer questions C1 through C3 for July 1, 1996 and July 1, 1997 for both the franchise area and thecable system for which you are completing this survey. If the system serving the franchise area for which you are completing this survey serves more than one franchise area, please provide both system and franchise level information. If the cable system serves only one franchise area then enter your answer in the space provided for franchise. Line C1: Enter the best available estimate of the total number of households in your franchise and system areas. Line C2: Enter the best available estimate of the number of households passed by your cable system in this franchise area and in all areas (including your franchise area) served by your system. Line C3: Enter the number of subscribers in your franchise area and in all areas (including your franchise area) served by your system. MODULE D: REGULATORY STATUS Under the 1992 Cable Act, BSTs and CPSTs are subject to regulation in the absence of effective competition. Please respond "1" for yes, "2" for no. Line D1a: Was the franchise area's BST regulated on July 1, 1996? Line D1b: Was the franchise area's CPST regulated on July 1, 1996? Line D1c: If BST and/or CPST were regulated on July 1, 1996, please identify the methodology that was used to set rates. Answer "1" for benchmark, "2" for cost of service, or "3" for other. Line D2a: Was the franchise area's BST regulated on July 1, 1997? Line D2b: Was the franchise area's CPST regulated on July 1, 1997? Line D2c: If BST and/or CPST were regulated on July 1, 1997, please identify the methodology that was used to set rates. Answer "1" for benchmark, "2" for cost of service, or "3" for other. MODULE E: EFFECTIVE COMPETITION IN THE FRANCHISE AREA Complete this section only if there has been a finding by the Commission that "effective competition" exists in your franchise area. If there has been no finding that effective competition exists, please skip to module 'G.' If there has been a finding of effective competition in your franchise area, please indicate under which test the effective competition was established. Please respond "1" for yes, "2" for no. Line E1a: Did fewer than 30% of the households in your franchise area subscribe to cable on July 1, 1996? Line E1b: Did any other multichannel video programming distributor (MVPD) offer comparable service to at least 50% of the households, and did more than 15% of the households in the franchise area receive service from MVPDs other than the largest distributor on July 1, 1996? Line E1c: Did the franchise authority offer video programming service to at least 50% of the households in your franchise area on July 1, 1996? Line E1d: Did a local exchange carrier (LEC), its affiliates, or any MVPD using a LEC's facilities offer comparable programming services (other than by direct-to-home satellite services) on July 1, 1996? Lines E2a-E2d: Answer questions E2a-E2d for 1997. MODULE F: NONUNIFORM RATES Section 623(d) of the Communications Act of 1934, as amended, exempts cable operators facing effective competition from uniform rate rules. If you are not subject to the uniform rules, please complete this module. If you are subject to the uniform rules, please skip to Module 'G.' Please respond "1" for yes, "2" for no. Line F1: As of July 1, 1997, were any subscribers in your franchise area subject to different rate structures for BST and/or CPSTs based on geographic location? Please do not include bulk discounts provided to multiple dwelling units. Line F2: Enter the number of subscriber groups for which different rates are charged in your franchise area as of July 1, 1997. Line F3: Enter the amount each subscriber group pays per month for programming services (i.e., for BST and/or CPSTs) and equipment on July 1, 1997. Line F4: Enter the number of subscribers in each subscriber group. Line F5: Enter the total number of BST and/or CPSTs channels for each subscriber group. MODULE G: MONTHLY CHARGES FOR EQUIPMENT, PROGRAMMING AND OTHER SERVICES This module collects information on monthly charges for equipment, programming services, installation, disconnects, reconnects, tier changes, and additional outlets on a franchise basis. Remember to limit your answers to the franchise area for which you are completing this survey, even if the system which serves that franchise area serves other areas. If you are charging different rates for different subscriber groups, please answer the questions in this module for the group having the largest number of subscribers. If equipment charges are bundled with programming charges, please enter the letter "B" (for bundled) for questions G1 and G2. Line G1a: Enter the monthly charge for addressable converters on July 1, 1996 and 1997. Line G1ai: Enter the number of subscribers taking addressable converters on July 1, 1996 and 1997. Line G1b: Enter the monthly charge for non-addressable of converters on July 1, 1996 and 1997. . Line G1bi: Enter the number of subscribers taking non-addressable converters on July 1, 1996 and 1997. Line G1c: Enter the monthly charge for remotes on July 1, 1996 and 1997. Line G1ci: Enter the number of subscribers taking remotes on July 1, 1996 and 1997. Line G1d: Enter the monthly charge for additional outlets. Line G1di: Enter the number of subscribers taking additional outlets. Line G1e: Are there any additional charges for equipment not shown above ? Please answer "1" for yes or "2" for no. If yes, please attach an explanation in a separate sheet. Line G1f: Please indicate whether or not your monthly equipment rates for July 1, 1997 were aggregated pursuant to section 623(a)(7)(A) of the Communications Act, as amended. Line G2a Enter the monthly programming charge for BST on July 1, 1996 and 1997. Line G2ai: Enter the number of BST subscribers on July 1, 1996 and 1997. Line G2b Enter the monthly programming charge for CPST1 on July 1, 1996 and 1997. Line G2bi: Enter the number of CPST1 subscribers on July 1, 1996 and 1997. Line G2c Enter the monthly programming charge for CPST2 on July 1, 1996 and 1997. Line G2ci: Enter the number of CPST2 subscribers on July 1, 1996 and 1997. Line G2d Enter the monthly programming charge for CPST3 on July 1, 1996 and 1997. Line G2di: Enter the number of CPST3 subscribers on July 1, 1996 and 1997. Line G2e Enter the monthly programming charge for CPST4 on July 1, 1996 and 1997. Line G2ei: Enter the number of CPST4 subscribers on July 1, 1996 and 1997. Line G3: Enter the total amount an average subscriber paid per month if that subscriber received the BST, the most highly penetrated CPST, a converter, and a remote on July 1, 1995, 1996 and 1997. Line G3a: Enter the number of subscribers to the franchise for which you are completing this survey on July 1, 1995, 1996 and 1997. Line G3b: Enter the number of channels on July 1, 1995, 1996 and 1997. Line G4a: Enter the average amount paid by a subscriber for installation during the 12 months ending July 1, 1996 and 1997. Line G4b: Enter the average amount paid by a subscriber for disconnect during the 12 months ending July 1, 1996 and 1997. Line G4c: Enter the average amount paid by a subscriber for reconnect during the 12 months ending July 1, 1996 and 1997. Line G4d: Enter the average amount paid by a subscriber for tier changes during the 12 months ending July 1, 1996 and 1997. Line G5a: Enter the number of installations provided during the 12 months ending July 1, 1996 and 1997. Line G5b: Enter the number of disconnects during the 12 months ending July 1, 1996 and 1997. Line G5c: Enter the number of reconnects during the 12 months ending July 1, 1996 and 1997. Line G5d: Enter the number of tier changes charged for during the 12 months ending July 1, 1996 and 1997. MODULE H: EXPLANATION OF CHANGES IN RATES DURING 12 MONTHS ENDING JULY 1, 1996 AND 1997 This module collects information on the causes of changes in your monthly rates. If your rates as shown in line G3 changed between July 1, 1995 and July 1, 1996, or between July 1, 1996 and July 1, 1997, please provide an explanation of the changes according to the following categories. Please use the list of programming services (Attachment) to identify national, regional, and local programming in order to answer questions H1a through H1c. Line H1: If a portion of the change in monthly subscriber charges was attributable to changes in the cost of programming, please complete lines H1a through H1c. Line H1a: Enter the amount of any change in monthly subscriber charges attributable to changes in cost of national programming. National programming services are identified in pages 2 - 6 of the Attachment. Line H1b: Enter the amount of any change in monthly subscriber charges attributable to a changes in the cost of regional programming. Regional programming services are identified in pages 1 - 2 of the Attachment. Line H1c: Enter the amount of any change in monthly subscriber charges attributable to a changes in the cost of local programming. Local programming services are mainly Public, Educational, Government, local access and local leased access channels. Line H2: Enter the amount of any change in monthly subscriber charges during the 12 months ending July 1, 1996 and 1997 attributable to changes in the cost of copyright fees. Line H3: If a portion of the change in monthly subscriber charges was attributable to system upgrades, please complete lines H3a through H3c. Line H3a: Enter the amount of any change in monthly subscriber charges during the 12 months ending July 1, 1996 and 1997 attributable to the cost of head end upgrades. Line H3b: Enter the amount of any change in monthly subscriber charges during the 12 months ending July 1, 1996 and 1997 attributable to the cost of distribution plant upgrades. Line H3c: If you or your parent entity has entered into a Social Contract with the FCC, enter the amount of any change in monthly subscriber charges during the 12 months ending July 1, 1996 and 1997 attributable to charges permitted under the Social Contract to cover upgrade costs. Line H4: Enter the amount of any change in monthly subscriber charges during the 12 months ending July 1, 1996 and 1997 attributable to inflation adjustments. Line H5: Enter the amount of any change in monthly subscriber charges during the 12 months ending July 1, 1996 and 1997 attributable to franchise fees. Line H6: Enter the amount of any change in monthly subscriber charges during the 12 months ending July 1, 1996 and 1997 attributable to franchise related costs (other than franchise fees). Line H7: Enter the amount of any change in monthly subscriber charges during the 12 months ending July 1, 1996 and 1997 attributable to adding channels under the Commission's rules. Line H8: Enter the amount of any change in monthly subscriber charges during the 12 months ending July 1, 1996 and 1997 attributable to changes in equipment charges. Line H9: Enter the amount of any change in monthly subscriber charges during the 12 months ending July 1, 1996 and 1997 which was attributable to other factors not specified above. Please provide a brief explanation of these factors in the space provided. Line H10: Add the amounts shown on lines H1a, H1b, H1c, H2, H3a, H3b, H3c, H4, H5, H6, H7, H8, and H9 and enter the total on line H10. This amount should equal the difference between the amounts shown on line G3 (i.e., the differences between July 1, 1995 and July 1, 1996, and between July 1, 1996 and July 1, 1997). Line H11: As of July 1, 1997, have you filed for uniform rates pursuant to the uniform rate-setting methodology order. Please answer "1" for yes or "2" for no. MODULE I: 1996 CABLE CHANNEL CAPACITY AND LINE-UP This module requests July 1, 1996 information for each BST and CPST. The requested information includes the total channel capacity; number of activated channels in three major categories including local broadcast, satellite and PEG; and the channel line-up. If you are offering different channel line-ups to different subscriber groups, please answer the questions in this module for the group having the largest number of subscribers. Line I1: Enter the total channel capacity on July 1, 1996 on the system serving the franchise area for which you are completing this survey. Line I2: Enter the total number of activated channels on July 1, 1996 on the system serving the franchise area for which you are completing this survey. Line I3a: Enter the number of broadcast channels offered on the BST on July 1, 1996. Line I3bi: Enter the number of public access channels offered on the BST on July 1, 1996. Line I3bii: Enter the number of educational access channels offered on the BST on July 1, 1996. Line I3biii: Enter the number of governmental access channels offered on the BST on July 1, 1996. Line I4a: Enter the number of satellite channels offered on each regulated service tier on July 1, 1996. Line I5: Enter the individual programming services included on each tier on July 1, 1996. Attached is a list of current cable and broadcast programming services, along with corresponding service codes. For each tier of service, indicate the programming services offered using these codes. If channels are shared by more than one programming service, list each service and indicate that the service is carried on a shared basis by placing an asterisk (*) next to the code. For purpose of this survey, superstations (e.g., WTBS and WGN) should not be considered broadcast television stations, unless they are local and entitled to must- carry status in this franchise area. Codes for these stations, when carried as superstations, are listed under the National Video Services category on the attached list. MODULE J: 1997 CABLE CHANNEL CAPACITY AND LINE-UP This module requests July 1, 1997 information comparable to the data described in Module I. To complete Module I follow the instructions provided for Module I, substituting the July 1, 1997 date where July 1, 1996 is specified. MODULE K: NEW PRODUCT TIERs This module collects information on new product tiers (NPTs). Complete this module only if you offered NPTs in this franchise area on July 1, 1996 and/or July 1, 1997. K1: Enter the number of channels devoted to NPTs on July 1, 1996 and 1997. K2: Enter the number of NPTs offered in this franchise area. K3: Enter the monthly subscriber charge for NPTs on July 1, 1996 and 1997. If multiple NPTs were offered, please give the average monthly charge for all NPTs on July 1, 1996 and 1997. K4: Enter the number of subscribers to NPTs on July 1, 1996 and 1997. If multiple NPTs were offered, please provide the average number of subscribers to NPTs on July 1, 1996 and 1997. MODULE L: LEASED ACCESS CHANNELS This module requests information on the number of channels devoted to leased access programming and the rates charged for leased access programming for the franchise area for which you are completing this survey. L1: Enter the number of channels devoted to leased access programming on July 1, 1996 and 1997. L2: If your system carried leased access programming on channels which offered eight hours or more of leased access programming per day, please complete lines L2i and L2ii. L2i: Enter the number of channels on which eight hours per day or more of leased access programming was offered on July 1, 1996 and 1997. L2ii: Enter the average monthly charge paid by programmers on a per-channel, per- subscriber basis for leasing channel capacity on which eight hours per day or more of leased access programming was offered on July 1, 1996 and 1997. L3: If your system carried leased access programming on channels which offered less than eight hours of leased access programming per day, please complete lines L3i and L3ii. L3i: Enter the number of channels on which less than eight hours per day of leased access programming was offered on July 1, 1996 and 1997. L3ii: Enter the average charge paid by programmers on a per-channel, per-subscriber, per- hour basis for leasing channel capacity on which less than eight hours per day of leased access programming was carried on July 1, 1996 and 1997. FCC NOTICE TO INDIVIDUALS REQUIRED BY THE PRIVACY ACT AND THE PAPERWORK REDUCTION ACT The solicitation of personal information in this form is authorized by the Communications Act of 1934, as amended. The Commission will use the information provided in this form to compare the prices charged for basic cable service, cable programming services, and equipment by cable operators subject to effective competition with those not subject to effective competition. Your response is required to prepare an annual report of cable industry prices as required by Section 623(k) of the Communications Act of 1934, as amended. Individuals are not required to respond to a collection of information unless it displays a currently valid OMB control number. Public reporting burden for this information is estimated to average 8 hours per response, including the time for reviewing instructions, searching existing data sources, gathering and entering the data needed, and completing and reviewing the questionnaire. Send comments regarding this burden estimate or any other aspect of this collection of information, including suggestions for reducing the burden, to the Federal Communications Commission, Records Management Division, Washington, D.C. 20554. Do not send completed forms to this address. THE FOREGOING NOTICE IS REQUIRED BY THE PRIVACY ACT OF 1974, P.L. 93-579, DECEMBER 31, 1975, 5 U.S.C. 522a(e)(3) AND THE PAPERWORK REDUCTION ACT OF 1995, 104-13, May 22, 1995, 47 U.S.C. 3507.