§ 76.503   National subscriber limits.

   (a)  No  cable  operator  shall  serve  more  than  30  percent of all
   multichannel-video programming subscribers nationwide through multichannel
   video programming distributors owned by such operator or in which such cable
   operator holds an attributable interest.

   (b)-(d) [Reserved]

   (e) “Multichannel video-programming subscribers” means subscribers who
   receive multichannel video-programming from cable systems, direct broadcast
   satellite  services, direct-to-home satellite services, BRS/EBS, local
   multipoint  distribution services, satellite master antenna television
   services (as defined in § 76.5(a)(2)), and open video systems.

   (f)  “Cable  operator”  means any person or entity that owns or has an
   attributable interest in an incumbent cable franchise.

   (g) Prior to acquiring additional multichannel video-programming providers,
   any cable operator that serves 20% or more of multichannel video-programming
   subscribers nationwide shall certify to the Commission, concurrent with its
   applications to the Commission for transfer of licenses at issue in the
   acquisition, that no violation of the national subscriber limits prescribed
   in this section will occur as a result of such acquisition.

   Note 1 to § 76.503: Certifications made under this section shall be sent to
   the attention of the Media Bureau, Federal Communications Commission, 445
   12th Street, SW., Washington, DC 20554.

   Note 2 to § 76.503: Attributable Interest shall be defined by reference to
   the criteria set forth in Notes 1 through 5 to § 76.501 provided however,
   that:

   (a) Notes 2(f) and 2(g) to § 76.501 to shall not apply;

   (b)(1) Subject to Note 2(i) to § 76.501, a limited partnership interest shall
   be attributed to a limited partner unless that partner is not materially
   involved, directly or indirectly, in the management or operation of the
   video programming-related activities of the partnership and the relevant
   entity so certifies. An interest in a Limited Liability Company (“LLC”) or
   Registered Limited Liability Partnership (“RLLP”) shall be attributed to the
   interest holder unless that interest holder is not materially involved,
   directly  or  indirectly,  in the management or operation of the video
   programming-related activities of the partnership and the relevant entity so
   certifies.

   (2) In the case of a limited partnership, in order for an entity to make the
   certification set forth in paragraph (b)(1) of this section, it must verify
   that the partnership agreement or certificate of limited partnership, with
   respect  to  the  particular  limited partner exempt from attribution,
   establishes that the exempt limited partner has no material involvement,
   directly  or  indirectly,  in the management or operation of the video
   programming activities of the partnership. In the case of an LLC or RLLP, in
   order for an entity to make the certification set forth in paragraph (g)(1)
   of this section, it must verify that the organizational document, with
   respect  to  the  particular  interest holder exempt from attribution,
   establishes that the exempt interest holder has no material involvement,
   directly  or  indirectly,  in the management or operation of the video
   programming activities of the LLC or RLLP. The criteria which would assume
   adequate insulation for purposes of these certifications are described in
   the Report and Order, FCC No. 99-288, CS Docket No. 98-82 (released October
   20, 1999). In order for the Commission to accept the certification, the
   certification must be accompanied by facts, e.g. in the form of documents,
   affidavits or declarations, that demonstrate that these insulation criteria
   are met. Irrespective of the terms of the certificate of limited partnership
   or partnership agreement, or other organizational document in the case of an
   LLC or RLLP, however, no such certification shall be made if the individual
   or entity making the certification has actual knowledge of any material
   involvement of the limited partners, or other interest holders in the case
   of an LLC or RLLP, in the management or operation of the video-programming
   activities of the partnership or LLC or RLLP.

   (3) In the case of an LLC or RLLP, the entity seeking insulation shall
   certify, in addition, that the relevant state statute authorizing LLCs
   permits an LLC member to insulate itself as required by our criteria.

   (c) Officers and directors of an entity covered by this rule are considered
   to  have  a  cognizable  interest in the entity with which they are so
   associated.  If  any  such  entity  engages  in  activities other than
   video-programming  activities,  it may request the Commission to waive
   attribution for any officer or director whose duties and responsibilities
   are wholly unrelated to the entity's video-programming activities. In the
   case of common or appointed directors and officers, if common or appointed
   directors or officers have duties and responsibilities that are wholly
   unrelated to video-programming activities for both entities, the relevant
   entity may request the Commission to waive attribution of the director or
   officer.  The  officers  and  directors  of  a  parent  company  of  a
   video-programming  business, with an attributable interest in any such
   subsidiary entity, shall be deemed to have a cognizable interest in the
   subsidiary unless the duties and responsibilities of the officer or director
   involved are wholly unrelated to the video-programming subsidiary, and a
   certification properly documenting this fact is submitted to the Commission.
   The officers and directors of a sister corporation of a cable system shall
   not be attributed with ownership of that entity by virtue of such status.

   [ 64 FR 67195 , 67199, Dec. 1, 1999, as amended at  67 FR 13234 , Mar. 21, 2002;
    69 FR 72046 , Dec. 10, 2004;  73 FR 11050 , Feb. 29, 2008]

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