(a) Upon denial or revocation of the franchising authority's certification, the Commission will regulate rates for cable services and associated equipment of a cable system not subject to effective competition, as defined in Sec. 76.905, in a franchise area. Such regulation by the Commission will continue until the franchising authority has obtained certification or recertification.
(b) A franchising authority unable to meet certification standards may petition the Commission to regulate the rates for basic cable service and associated equipment of its franchisee when:
(1) The franchising authority lacks the resources to administer rate regulation.
(2) The franchising authority lacks the legal authority to regulate basic service rates; Provided, however, That the authority must submit with its request a statement detailing the nature of the legal infirmity.
(c) The Commission will regulate basic service rates pursuant to this Section until the franchising authority qualifies to exercise jurisdiction pursuant to Sec. 76.916. [58 FR 29753, May 21, 1993, as amended at 62 FR 6495, Feb. 12, 1997]