Prior to March 31, 1999, if local governments received complaints from citizens within ninety (90) days of the rate increase, local governments had one hundred eighty (180) days from the rate increase to file documents with the FCC asking them to review the rate increase for the CPST tier. Hernando County has done this in the past and the FCC has found that Time Warner (now Time-Warner Entertainment-Advance Newhouse Partnership d/b/a Bright House Networks, per approved assignment of the current Franchise Agreement) raised its rates above the allowable threshold and required Time Warner to grant appropriate relief. After March 31, 1999, the FCC no longer regulates the standard tier rates and for that matter neither does any other entity. The Act contemplated that by that date there would be ample competition within the cable industry making rate regulation of the standard tier unnecessary.

Local governments may still regulate the basic tier which is essentially your broadcast channels from zero to thirteen with some exceptions. However, to be able to regulate the standard tier the local government has to certify to the FCC that it is able and has the necessary staff to regulate the Basic tier, which is a small portion of the cable bill. The rest of the cable bill is due to the standard tier and any premium pay preview channels. In addition, the cable industry has begun challenging local government regulation of even Basic cable rates by establishing the existence of "effective competition," which the FCC has decided may include satellite signal reception. Thus, efforts to regulate even Basic cable rates would likely be met with litigation and an uncertain outcome in costly and time-consuming FCC administrative proceedings.

Finally, Time Warner also entered into a social contract mainly with the FCC. Time Warner as part of the social contract agreed to provide cable services to schools and certain other not for profit institutions at no cost to them but, of course, the costs were going to be passed to the paying subscribers. Part of the social contract provided that Time Warner would only increase costs by inflation and any increased programming costs that were passed on to it by the provider. As part of the social contract Time Warner has increased certain of its rates, and the bottom line is the County has no regulatory authority over the cable programming service tier (standard tier) that engenders most of the cost.

Summary of the above as follows: After March 31, 1999, neither the FCC nor local governments have the authority to regulate the cable programming service tier (standard tier) of channels, generally, channels above fourteen, including such channels as the weather channels, Nickelodeon, Turner Broadcasting, etc. The County's agreement with Time Warner (as assigned to Time-Warner Entertainment-Advance Newhouse Partnership d/b/a Bright House Networks) is a non exclusive franchise and any other cable provider is welcome to provide cable service to County residents. The basic tier rates (Channel 0-13) have not risen greatly over the last several years. Most of the increases have occurred in the standard tier. The County can still regulate the basic tier providing it certifies it has the capabilities of doing so and can defeat claims that satellite services provide effective competition within the franchise area. Because of the minimal cost and level of recent increases for the basic tier, as well as the potential for costly litigation, the County has not asserted regulatory authority over basic cable rates . Since the federal Act was enacted by Congress, Congress can change the provisions of the Act to allow the FCC to again regulate cable television rates but it has chosen not to do so. In view of the preemption of this matter by the United States Congress there is nothing the County can do in regard to significant cable TV rate regulation. By federal law, the Florida Public Service Commission (FPSC) has no jurisdiction over cable TV rate regulation. The U.S. House and Senate would have to change the language of the 1996 Telecommunications Act as revised in March of 1999. After that the president of the United States would sign or veto such legislation.