WHAT YOU OWE – CABLE TELEVISION SYSTEMS FOR FY 2018 Each year, the Commission is required to collect regulatory fees.  Licensees and regulatees are assessed fees as set forth in Assessment and Collection of Regulatory Fees for Fiscal Year 2018, Report and Order and Order, (released August 29, 2018) (“FY 2018 Regulatory Fees, Report and Order”). The Commission also publishes industry-specific guidance in Who Owes Fees & What Is My FY 2018 Fee, which can be found on the Commission website at http://www.fcc.gov/regfees. The Commission’s automated filing and payment system (“Fee Filer”) is available for filing and viewing of FY 2018 regulatory fees. While FY 2018 regulatory fees will not become effective until the rulemaking is published in the Federal Register, regulatees at their own discretion, may submit payments at any time before the effective due date of FY 2018 regulatory fees.  Regulatory fee payments MUST BE RECEIVED The Commission has instituted a mandatory electronic payment policy, which means that licensees will not be able to make regulatory fee payments by check, money order, or cashier’s check. Only credit card, ACH, and wire transfer payments will be accepted. Please make sure that your electronic fee payment is made and the transaction is complete by the due date of FY 2018 regulatory fees. by the Commission no later than 11:59 PM, Eastern Daylight Time, on September 25, 2018. Cable television systems operating on October 1, 2017 must pay a regulatory fee per subscriber Number of Subscribers in a Community Unit = Number of single family dwellings + Number of individual households in multiple dwelling units (e.g., apartments, condominiums, mobile home parks, etc.) paying at the basic subscriber rate + Number of bulk-rate customers + Number of courtesy and free service. (NOTE: Bulk-Rate Customers = total annual bulk rate charge ¸ basic annual subscription rate for individual households). for all of the community units (CUIDs) in which they operate. The number of basic cable subscribers that were served on December 31, 2017 should be used as the basis from which to calculate the fee payment. Regulatory fees should be paid with a single line aggregate total in Fee Filer without having to list your individual CUIDs. In FY 2013, the Commission concluded that Internet Protocol TV (IPTV) subscribers should be included in the Cable Television Systems category, and assessed a regulatory fee at the same rate as cable television fees. See FY 2013 Report and Order, 28 FCC Rcd at 12363, para. 33. After the requisite congressional notification, the fees for IPTV became effective on June 25, 2014. Per 159 (b)(4)(B). Hence, beginning in FY 2014 and thereafter, providers of IPTV are subject to regulatory fees. Cable television system operators and licensees of CARS facilities must pay a regulatory fee if they were operating or held a CARS license on October 1, 2017, even if a facility’s license expired after October 1, 2017. In instances where a license or authorization is transferred or assigned after October 1, 2017, the fee must be paid by the party that is the licensee or holder of the authorization on the date that the fee payment is due. When submitting payment, CARS licensees should individually list each of their CARS call signs. Notice of Billing: CARS licensees will not receive a pre-completed regulatory fee bill (FCC Form 159-B) in the mail for their CARS licenses. A regulatory fee bill will be created, but this bill will be available for viewing only by accessing Fee Filer. CARS licensees are also required to make regulatory fee payments for all other non-billed holdings, such as cable systems and other fee services. DIRECT BROADCAST SATELLITE (DBS) REGULATORY FEE In FY 2015, the Commission instituted a new Direct Broadcast Satellite (DBS) regulatory fee to be paid on a per subscriber basis. Assessment and Collection of Regulatory Fees for Fiscal Year 2015, Notice of Proposed Rulemaking, Report and Order, and Order, 30 FCC Rcd 5354 (2015) (FY 2015 NPRM, FY 2015 Fee Reform Report and Order). DBS providers are required to pay a DBS regulatory fee based on their subscriber count as of December 31, 2017. TYPE OF FEE REGULATORY FEE PAYMENT PAYMENT TYPE CODE Cable System Subscriber Fee, Including IPTV Subscribers $.77 per subscriber 1871 CARS License $1,075 per license 1870 Direct Broadcast Satellite (DBS) $0.48 per subscriber 1892 MANDATORY USE OF FEE FILER The use of the online Fee Filer system for filing regulatory fees has not changed since the process was first initiated in FY 2009: licensees and regulatees must first enter the Commission’s Fee Filer system with a valid FRN and password, and follow the online prompts to review their data and submit an electronic fee payment. Use of the online Fee Filer system is mandatory, and payments in the form of checks, money orders, and cashier’s checks will not be accepted. Payors should note that this change will mean that entities that have previously paid both regulatory fees and application fees at the same time by paper check will no longer be able to do so because regulatory fees payments by paper check will no longer be accepted. In making a wire transfer, please fax the “Wire Transfer Instructions” from Fee Filer to the Federal Communications Commission at (202) 418-2843 at least one hour before initiating the wire transfer (but on the same business day) so as not to delay crediting their account. These Wire Transfer Instructions contain valuable information (e.g. FRN, Voucher Number, Payer Name, and the Amount of the Wire) that will help to post the payment more quickly, and avoid costly delays that could result in penalties and interest for missing the payment due date. Please note that most wire transfers initiated after 6:00 p.m. (EDT) will be credited the next business day. PLEASE NOTE: As a reminder, all Regulatory Fees MUST be filed, submitted and paid through the Fee Filer System. If you have any questions, please contact 877-480-3201, Option 6.  Not submitting the wire transfer through Fee Filer will delay the posting of your payment, which in some instances, has caused a demand letter to be mailed out until the wire transfer payment is sorted out. In addition, we are also urging all entities who send wire transfer payments to include the Voucher Number, Payer Name, and Payer FRN on the wire remittance. LIMITATIONS ON CREDIT CARD TRANSACTIONS In accordance with U.S. Treasury Announcement No. A-2014-04 (July 2014), the amount that can be charged on a credit card for transactions with federal agencies has been reduced to $24,999.99. Customers who owe an amount on a bill, debt, or other obligation due to the federal government are prohibited from splitting the total amount due into multiple payments. Splitting an amount owed into several payment transactions violates the credit card network and Fiscal Service rules. An amount owed that exceeds the Fiscal Service maximum dollar amount, $24,999.99, may not be split into two or more payment transactions in the same day by using one or multiple cards. Also, an amount owed that exceeds the Fiscal Service maximum dollar amount may not be split into two or more transactions over multiple days by using one or more cards. Previously, the credit card limit was $49,999.99. This lower transaction amount is effective June 1, 2015. Transactions greater than $24,999.99 will be rejected. This limit applies to single payments or bundled payments of more than one bill. Multiple transactions to a single agency in one day may be aggregated and treated as a single transaction subject to the $24,999.99 limit. Customers who wish to pay an amount greater than $24,999.99 should consider available electronic alternatives such as Visa or MasterCard debit cards, ACH debits from a bank account, and wire transfers. Each of these payment options is available after filing regulatory fee information in Fee Filer. Further details will be provided regarding payment methods and procedures at the time of FY 2018 regulatory fee collection in Fact Sheets, available at https://www.fcc.gov/regfees. Regulatory fee payments that exceed the U.S. Treasury limit and are rejected by Treasury, causing a payment not to meet the required payment deadline, will be subject to interest, fees, and a 25% late payment penalty. DE MINIMIS REGULATORY FEE LEVEL Regulatees whose total FY 2018 annual regulatory fee liability, including all categories of fees for which payment is due, is $1,000 or less are exempt from payment of FY 2018 regulatory fees. The de minimis threshold applies only to filers of annual regulatory fees (not regulatory fees paid through multi-year filings), and it is not a permanent exemption. Rather, each regulate will need to reevaluate their total fee liability each fiscal year to determine whether they meet the de minimis exemption. Regulatees are responsible for calculating their own total fee obligation to determine whether they qualify for this de minimis exemption. The Commission reserves the right to request documentation that supports a de minimis exemption claim. - FCC - 3