§ 76.206   Candidate rates.

   (a) Charges for use of cable television systems. The charges, if any, made
   for the use of any system by any person who is a legally qualified candidate
   for any public office in connection with his or her campaign for nomination
   for election, or election, to such office shall not exceed:

   (1) During the 45 days preceding the date of a primary or primary runoff
   election and during the 60 days preceding the date of a general or special
   election in which such person is a candidate, the lowest unit charge of the
   system for the same class and amount of time for the same period.

   (i) A candidate shall be charged no more per unit than the system charges
   its most favored commercial advertisers for the same classes and amounts of
   time  for the same periods. Any system practices offered to commercial
   advertisers that enhance the value of advertising spots must be disclosed
   and made available to candidates upon equal terms. Such practices include
   but are not limited to any discount privileges that affect the value of
   advertising, such as bonus spots, time-sensitive make goods, preemption
   priorities, or any other factors that enhance the value of the announcement.

   (ii) The Commission recognizes non-preemptible, preemptible with notice,
   immediately preemptible and run-of-schedule as distinct classes of time.

   (iii) Systems may establish and define their own reasonable classes of
   immediately preemptible time so long as the differences between such classes
   are based on one or more demonstrable benefits associated with each class
   and are not based solely upon price or identity of the advertiser. Such
   demonstrable benefits include, but are not limited to, varying levels of
   preemption protection, scheduling flexibility, or associated privileges,
   such as guaranteed time-sensitive make goods. Systems may not use class
   distinctions to defeat the purpose of the lowest unit charge requirement.
   All classes must be fully disclosed and made available to candidates.

   (iv) Systems may establish reasonable classes of preemptible with notice
   time so long as they clearly define all such classes, fully disclose them
   and make them available to candidates.

   (v) Systems may treat non-preemptible and fixed position as distinct classes
   of time provided that systems articulate clearly the differences between
   such classes, fully disclose them, and make them available to candidates.

   (vi) Systems shall not establish a separate, premium-priced class of time
   sold only to candidates. Systems may sell higher-priced non-preemptible or
   fixed time to candidates if such a class of time is made available on a bona
   fide basis to both candidates and commercial advertisers, and provided such
   class is not functionally equivalent to any lower-priced class of time sold
   to commercial advertisers.

   (vii) [Reserved]

   (viii) Lowest unit charge may be calculated on a weekly basis with respect
   to time that is sold on a weekly basis, such as rotations through particular
   programs or dayparts. Systems electing to calculate the lowest unit charge
   by  such  a  method must include in that calculation all rates for all
   announcements scheduled in the rotation, including announcements aired under
   long-term advertising contracts. Systems may implement rate increases during
   election periods only to the extent that such increases constitute “ordinary
   business practices,” such as seasonal program changes or changes in audience
   ratings.

   (ix) Systems shall review their advertising records periodically throughout
   the  election period to determine whether compliance with this section
   requires  that candidates receive rebates or credits. Where necessary,
   systems shall issue such rebates or credits promptly.

   (x)  Unit  rates  charged as part of any package, whether individually
   negotiated or generally available to all advertisers, must be included in
   the lowest unit charge calculation for the same class and length of time in
   the same time period. A candidate cannot be required to purchase advertising
   in  every program or daypart in a package as a condition for obtaining
   package unit rates.

   (xi) Systems are not required to include non-cash promotional merchandising
   incentives in lowest unit charge calculations; provided, however, that all
   such incentives must be offered to candidates as part of any purchases
   permitted by the system. Bonus spots, however, must be included in the
   calculation of the lowest unit charge calculation.

   (xii) Make goods, defined as the rescheduling of preempted advertising,
   shall  be provided to candidates prior to election day if a system has
   provided  a  time-sensitive  make  good  during the year preceding the
   pre-election periods, respectively set forth in paragraph (a)(1) of this
   section, to any commercial advertiser who purchased time in the same class.

   (xiii) Systems must disclose and make available to candidates any make good
   policies provided to commercial advertisers. If a system places a make good
   for any commercial advertiser or other candidate in a more valuable program
   or daypart, the value of such make good must be included in the calculation
   of the lowest unit charge for that program or daypart.

   (2) At any time other than the respective periods set forth in paragraph
   (a)(1) of this section, systems may charge legally qualified candidates for
   public office no more than the charges made for comparable use of the system
   by commercial advertisers. The rates, if any, charged all such candidates
   for the same office shall be uniform and shall not be rebated by any means,
   direct or indirect. A candidate shall be charged no more than the rate the
   system would charge for comparable commercial advertising. All discount
   privileges otherwise offered by a system to commercial advertisers must be
   disclosed and made available upon equal terms to all candidates for public
   office.

   (b) If a system permits a candidate to use its cablecast facilities, the
   system shall make all discount privileges offered to commercial advertisers,
   including the lowest unit charges for each class and length of time in the
   same time period and all corresponding discount privileges, available on
   equal terms to all candidates. This duty includes an affirmative duty to
   disclose to candidates information about rates, terms, conditions and all
   value-enhancing discount privileges offered to commercial advertisers, as
   provided in § 76.1611. Systems may use reasonable discretion in making the
   disclosure; provided, however, that the disclosure includes, at a minimum,
   the following information:

   (1)  A  description  and definition of each class of time available to
   commercial advertisers sufficiently complete enough to allow candidates to
   identify and understand what specific attributes differentiate each class;

   (2) A description of the lowest unit charge and related privileges (such as
   priorities against preemption and make goods prior to specific deadlines)
   for each class of time offered to commercial advertisers;

   (3) A description of the system's method of selling preemptible time based
   upon advertiser demand, commonly known as the “current selling level,” with
   the  stipulation  that  candidates  will  be able to purchase at these
   demand-generated rates in the same manner as commercial advertisers;

   (4)  An approximation of the likelihood of preemption for each kind of
   preemptible time; and

   (5) An explanation of the system's sales practices, if any, that are based
   on audience delivery, with the stipulation that candidates will be able to
   purchase this kind of time, if available to commercial advertisers.

   (c)  Once disclosure is made, systems shall negotiate in good faith to
   actually sell time to candidates in accordance with the disclosure.

   [ 57 FR 210 , Jan. 3, 1992, as amended at  57 FR 27709 , June 22, 1992;  65 FR 53615 , Sept. 5, 2000]

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