DA 01-1441 Released: July 3, 2001

**PERMANENT AND INTERIM APPLICATION PROCEDURES ANNOUNCED**

**FOR AUTHORITY TO OPERATE STATIONS FORMERLY LICENSED TO ENTITIES**

**CONTROLLED BY MICHAEL RICE**

This *Public Notice* contains information relevant to Auction No. 32 and
Auction No. 37. The Mass Media Bureau ("MMB") and the Wireless
Telecommunications Bureau ("WTB") (collectively, the "Bureaus") hereby
give notice of filing windows for applications for permanent and/or
interim authority for the following radio station assignments:

[FORMER CALL SIGN]{.underline} [COMMUNITY OF LICENSE]{.underline}
[FREQUENCY]{.underline}

WBOW(AM) Terre Haute, IN 640 KHz WBUZ(AM) Terre Haute, IN 1230 KHz
WZZQ(FM) Terre Haute, IN Ch. 298B (107.5 MHz) KFMZ(FM) Columbia, MO Ch.
252C2 (98.3MHz) KROW(FM) Huntsville, MO (Construction Permit) Ch. 278C2
(103.5 MHz) KBMX(FM) Eldon, MO Ch. 270A[^1] (101.9 MHz) KFXE-FM Cuba, MO
(Construction Permit) Ch. 271A (102.1 MHz)

The filing window for the listed AM assignments will open on **July 16,
2001** and close on **July 24, 2001**. The filing window for the listed
FM assignments will be announced by a subsequent *Public Notice* in
conjunction with Auction No. 37, as described below.

On March 19, 2001, the Supreme Court of the United States denied
*certiorari* in the case of *Contemporary Media, Inc. v. FCC*, \_\_\_
U.S. \_\_\_, 121 S.Ct. 1355 (2001). This action rendered final the
opinion of the United States Court of Appeals for the District of
Columbia Circuit affirming the Commission's decision[^2] revoking seven
authorizations formerly licensed to entities affiliated with Michael
Rice. *Contemporary Media, Inc. v. FCC*, 214 F.3d 187 (D.C. Cir. 2000).
Accordingly, judicial review has now been completed, and the former
licensees must now terminate operations by 12:01 a.m. on July 13, 2001.
13 FCC Rcd at 14,461.

As explained in more detail below, in order to preserve broadcast
service to the affected communities, the former licensees will be
granted special temporary authorization to continue such operation for a
period not to exceed 90 days from the date of this *Public Notice* or
until 14 days after the interim operator or permanent successor licensee
has given notice that it is ready to commence operations, whichever
occurs sooner. Accordingly, minor change applications must continue to
protect these formerly authorized facilities. The AM facilities in Terre
Haute were authorized under technical standards less stringent than
current rule requirements. *See Report and Order in the Matter of Review
of Technical Assignment Criteria for the AM Broadcast Service*, 6 FCC
Rcd 6273 (1991), *recon. granted in part and denied in part*, 8 FCC Rcd
3250 (1993) ("*AM Improvement Orders*"). In order to preserve broadcast
service to the affected communities, the Bureaus will accept interim
proposals and new station proposals for permanent authority for these
Terre Haute AM radio station assignments that specify current operating
parameters. *See, e.g., Chameleon Radio Corporation*, FCC 00-397
(released December 1, 2000) (Commission directs staff to waive pertinent
technical standards to permit applicants to replicate revoked station's
existing service area). Modified new station proposals must satisfy the
technical requirements set forth in the *AM Improvement Orders*. *See,
e.g.*, 6 FCC Rcd at 6294-97. Competing AM major modification proposals
must comply with current AM technical rules.

Interested parties may apply for interim and/or permanent authorizations
as outlined below. Interim proposals for fewer than all of the vacated
frequencies will be considered only if no interim applicant proposes
operation on all of the AM and FM radio station assignments.

*Applicants for interim authorization*. Applications for interim
authority for the five formerly licensed facilities must be filed in
paper form with the Office of the Secretary by 5:30 p.m. Eastern Time on
**July 24, 2001**.[^3] Such applications shall contain Section 1 and the
Tech Box of Section III of FCC Form 301, May 1999 version.[^4]
Additionally, each applicant for interim authority must submit a
narrative statement detailing (1) the radio station assignment(s)
sought; (2) a plan and timetable for promptly initiating interim
operations on such radio station assignments; and (3) arrangements, if
any, it has made with the former licensee for lease or purchase of
existing technical facilities.

Upon receipt of the interim applications, the Mass Media Bureau staff
will promptly make a determination regarding potential mutual
exclusivity for each of the subject radio station assignments and may
request additional information regarding applicants' legal and technical
qualifications. To the extent that there remains more than one proposal
for interim operation for any assignment, the Bureau will contact those
applicants shortly after the determination of potential mutual
exclusivity and provide a five-day period to reach voluntary agreements
for joint interim operations and to file requests for approval of these
agreements.[^5] Should no agreement be reached, the Bureau may consider
imposing a share-time arrangement among the applicants or not selecting
interim operators. In either event, the Bureau staff will evaluate the
interim proposals and render a determination in each case as quickly as
possible.

Interim operators will be permitted to run the stations on a for-profit
basis. In past cases, an interim operator has generally been considered
a "caretaker" of the frequency until a permanent operator was selected.
Interim operators also have been required to distribute all net profits
to charity. *See, e.g., Angeles Broadcasting Network*, 96 FCC 2d 5, 7
(Rev. Bd. 1984). Due to the short duration of interim operation expected
here, and the size of the markets in which these stations are located,
the Bureaus believe that permitting an interim operator to profit from
its temporary operation will generate more interest in such operation,
and thus facilitate continuity of service to these communities.

*Applicants for permanent authorization*. Selection among mutually
exclusive applicants for permanent operation of these facilities will be
*via* the Commission's broadcast station competitive bidding rules.
*See* 47 C.F.R. § 73.5000 *et seq*.

**AM applicants**. The filing window for AM Auction No. 32 has been
completed, and the staff has made determinations of mutual
exclusivity.[^6] Accordingly, by this *Public Notice* the Bureaus
announce a supplemental filing window for AM Auction No. 32. The
Commission will accept only applications in conflict with the two
formerly licensed AM stations listed above or in conflict with such
applications. **Those wishing to participate in the auction for these AM
frequencies must file both an FCC Form 175, and Section I and the Tech
Box of Section III-A of FCC Form 301, Application for Construction
Permit for Commercial Broadcast Station, (May 1999 version) between 9:00
a.m Eastern Time on July 16 and 5:30 p.m. Eastern Time on July 24,
2001**. *See* Attachments A, B, and C for more information regarding the
completion of FCC Form 175, including information on bidding credits and
designated entities. No fees are required at this time. To the extent
mutually exclusive applications are filed, the Bureaus anticipate that
they will be consolidated with other pending mutually exclusive AM
groups and included in Auction No. 32. The Bureaus will establish an
Auction No. 32 auction date and auction procedures by subsequent *Public
Notice*. Consistent with procedures established for Auction No. 32, the
staff will undertake comparative Section 307(b) analyses as necessary
and, if major modification applications are filed, permit settlements
with respect to applications received pursuant to this *Public Notice*.

In order to accommodate a WTB infrastructure maintenance window, the
Bureaus hereby waive the electronic filing requirement[^7] and will
require AM applicants to manually file both Form 175 applications and
the Form 301 Section I and Tech Box of Section III-A submissions. For
more information regarding the manual filing of Form 175 applications
and Form 301 Section I and the Tech Box of Section III-A submissions,
*see* Attachments A and B. Pursuant to the Commission's broadcast
competitive bidding rules, only a winning bidder will be required to
submit a complete long-form application, FCC Form 301, following the
close of the auction. *See* 47 C.F.R. § 73.5005.

**FM applicants**. FM Auction No. 37 is scheduled to begin on December
5, 2001. The Bureaus have sought comment and established competitive
bidding procedures for Auction No. 37.[^8] The Bureaus will open a
window for the filing of FCC Form 175 applications for Auction No. 37 on
September 24, 2001, and all such applications must be filed by October
5, 2001.[^9] By this *Public Notice*, the Bureaus announce that they
will expand FM Auction No. 37 to include applications for the five FM
allotments listed above. Additionally, the Bureaus will release shortly
a *Public Notice* seeking comment on minimum opening bids and other
procedural issues relating to the five subject FM allotments, thus
placing them in the same procedural posture as the extant FM allotments
subject to Auction No. 37.

*Operation of the stations pending selection of an interim operator or
successor licensee*. The Mass Media Bureau staff will expeditiously
evaluate both interim and permanent authority applications in order to
authorize replacement service as quickly as possible. Nevertheless, in
order to help preserve the current level of service to the listed
communities, the disqualified former licensees ARE HEREBY GRANTED
special temporary authorization to continue their operations for a
period not to exceed 90 days from the date of this *Public Notice*[^10]
or until 14 days after the interim operators or permanent successor
licensees have given notice that they are ready to commence operations,
whichever occurs sooner.[^11] Such operation also will be subject to the
following condition: each former licensee shall, commencing on July 13,
2001, compute its net profits by the accounting methods used for Federal
income tax purposes and shall pay over to recognized and unaffiliated
local charities those net profits. Distributions shall be made at
intervals not exceeding every 30 days; the first such disbursement shall
be made within ten business days of the close of the first 30-day
accounting period. Each former licensee shall also, at 30-day intervals,
file with the Commission an accounting of its revenues, expenses, and
net profits, if any, and document the distribution of such net profits,
and shall continue to submit accounts thereafter at intervals of not
more than every 30 days during the entire term of the temporary
operation. The accounting should be submitted to the Chief, Mass Media
Bureau, and the first accounting shall be submitted on August 13, 2001.
*See, e.g., RKO General (WNAC-TV, Boston, Massachusetts*), 50 RR 2d 1566
(1982), *citing Impoundment of Profits of Station WLBT(TV), Jackson,
Mississippi*, 39 FCC 2d 462 (1973).

*Petition for Equitable Relief/Motion for Extension of Operating
Authority.* On June 1, 2001, Rice and the licensee entities under his
control filed a "Petition for Equitable Relief" in which they sought,
*inter alia*, to permit the former licensees to "retain" their licenses
or, alternatively, that the Commission permit the assignment of the
stations to qualified buyers.[^12] They also filed a "Motion for
Extension of Operating Authority" seeking to extend their authority to
operate the radio stations pending consideration of the Petition for
Equitable Relief.

The Petition for Equitable Relief is an untimely and collateral
challenge to a proceeding that has been final since April 13, 2001, the
deadline for seeking rehearing of the Supreme Court's denial of
*certiorari.* Accordingly, the Petition for Equitable Relief hereby IS
DISMISSED. *See, e.g.*, *Association of Public Safety Communications
Officials, Inc., Emergency Petition or Clarification*, 14 FCC Rcd 4339,
4344 (W.T. Bur. 1999) (dismissing pleading as "an impermissible
collateral attack on final Commission decisions"). Mr. Rice has no radio
stations to retain or assign.[^13] Additionally, given our actions here
granting to the former licensees special temporary authorization to
continue station operations and dismissing the Petition for Equitable
Relief, the Motion for Extension of Operating Authority also IS
DISMISSED.

For additional information, contact Lisa Scanlan or Michael Wagner at
the Audio Services Division, Mass Media Bureau, at (202) 418-2700.

***List of Attachments:***

Attachment A: Pre-Auction Procedures

Attachment B: Guidelines for Completion of FCC Form 175 and Exhibits

> Attachment C: Eligibility for New Entrant Bidding Credit; Ownership
> Disclosure Requirements; Consortia and Joint Bidding Arrangements

**ATTACHMENT A**

**PRE-AUCTION PROCEDURES**

**A. Short-Form Application (FCC Form 175) Filing Procedures for AM
Applicants \-- Due July 24, 2001, 5:30 p.m. ET.**

All applicants must submit an FCC Form 175 application no later than
5:30 p.m. ET on July 24, 2001. Late applications will not be accepted.
There is no application fee required when filing an FCC Form 175.

(1) **Manual Filing**

All FCC Form 175 applications for this filing window **[must be filed
manually]{.underline}. Applicants must use the October 2000 version of
FCC Form 175 and FCC Form 175 Schedule B. Earlier versions of the FCC
Form 175 will not be accepted for filing. AM applicants must also file
file Section I and the Tech Box from Section III-A of FCC form 301 (May
1999 version)**. A copy of the forms, along with instructions, may be
downloaded from the Commission's World Wide Web site at
*http://www.fcc.gov/formpage.html*. Additional copies of the FCC Form
175 or FCC Form 301 can be obtained by calling the Commission\'s Forms
Distribution Center at (800) 418‑3676 (outside Washington, D.C.) or
(202) 418‑3676 (in the Washington area). If applicants have any
questions concerning availability of the FCC Form 175, they should call
the FCC Records Management Branch at (202) 418‑0210.

> All applications must be submitted by hand delivery (including private
> \"overnight" courier) or by U.S. mail (certified mail with return
> receipt recommended), addressed to:

FCC Form 175 Filing Auction No. 32

Federal Communications Commission

Wireless Telecommunications Bureau

Auctions and Industry Analysis Division

1270 Fairfield Road

Gettysburg, PA 17325-7245

**NOTE: Applications delivered to any other location or applications
sent *via* facsimile will not be accepted.**

(2) **Applications for the AM facilities and AM major modification
    applications filed during the window filing period**

As discussed in the *Broadcast Auction First Report and Order*,[^14] the
Commission will require applicants for AM stations to file, in addition
to their FCC Form 175 short form applications, the engineering data
contained in the FCC Form 301. Such engineering information is required
so that the staff can make mutual exclusivity determinations. A
comprehensive review of applicants' technical proposals will be
undertaken by the staff following the submission of long-form
applications, FCC Form 301, by winning bidders post-auction, or by
applicants identified as non-mutually exclusive.

**Applicants for new AM stations and AM major modifications must file
Section I and the Tech Box from Section III-A of FCC form 301 (May 1999
version)** **in addition to the FCC Form 175. This Form 301 must be
submitted in triplicate and filed (along with the FCC Form 175) at the
Gettysburg office of the Wireless Telecommunications Bureau's Auctions
and Industry Analysis Branch at the address listed in (1) above by 5:30
p.m. Eastern Time on July 24, 2001.** Late applications will not be
accepted. No application filing fee is required. Applications for new AM
stations or for AM major modifications within the AM Expanded Band may
not be filed during this auction filing window. **Each Form 301
application submitted during the filing window for an AM facility must
include a copy of the related FCC Form 175.** A courtesy copy of any
Form 175/Form 301 application package filed during the window should
also be sent to Elizabeth Robinson, Federal Communications Commission,
Mass Media Bureau, Audio Services Division, Room 2-B450, 445 12^th^
Street, S.W., Washington, D.C. 20554.

**(3) Completion of the FCC Form 175**

Applicants should carefully review 47 C.F.R. Sections 1.2105 and 73.5002
and must complete all items on the FCC Form 175. Detailed instructions
for completing the FCC Form 175 are listed in Attachment B of this
Public Notice. Failure to sign the FCC Form 175 will result in dismissal
of the application and loss of the ability to participate in the
auction. **Only original signatures will be accepted for filed
applications.**

B.  **Prohibition of Collusion**

To insure the competitiveness and integrity of the auction process, the
Commission's Rules prohibit competing applicants from communicating with
each other during the auction about bids, bidding strategies, or
settlements. This prohibition becomes effective at the short-form
application deadline, and ends on the post-auction down payment due
date. Bidders competing for the same construction permit(s) are
encouraged not to use the same individual as an authorized bidder. A
violation of the anti-collusion rule could occur if an individual acts
as the authorized bidder for two or more competing applicants, and
conveys information concerning the substance of bids or bidding
strategies between the bidders he or she is authorized to represent in
the auction. Also, if the authorized bidders are different individuals
employed by the same organization (*e.g.*, law firm or technical
consulting firm), a violation could similarly occur. At a minimum, in
such a case, applicants should certify that precautionary steps have
been taken to prevent communication between authorized bidders and that
applicants and their bidding agents will comply with the anti-collusion
rule.[^15] The Bureaus, however, caution that merely filing a certifying
statement as part of an application will not outweigh specific evidence
that collusive behavior has occurred, nor will it preclude the
initiation of an investigation when warranted.[^16] However, applicants
may enter into bidding agreements before filing their FCC Form 175
short-form applications, as long as they disclose the existence of the
agreement in their FCC Form 175 applications.[^17]

By submitting their FCC Form 175 short-form applications, applicants are
certifying their compliance with Sections 1.2105(c) and 73.5002. In
addition, Section 1.65 of the Commission's Rules requires an applicant
to maintain the accuracy and completeness of information furnished in
its pending application and to notify the Commission, as promptly as
possible and in any event within 30 days, of any substantial change that
may be of decisional significance to that application. Thus, Section
1.65 requires an auction applicant to notify the Commission of any
violation of the anti-collusion rules upon learning of such violation.
Bidders are therefore required to make such notification to the
Commission immediately upon discovery.

**C. Application Processing and Minor Corrections**

After the deadline for filing has passed, and assuming more than one FCC
Form 175 is received, the Commission will subsequently issue a public
notice identifying: (1) those applications which are mutually exclusive
(including FCC reference numbers); (2) those applications rejected; and
(3) those applications that have minor defects that may be corrected,
and the deadline and instructions for filing such corrected
applications. If only one FCC Form 175 is received for a specific
assignment during the window, that assignment will be removed from the
auction inventory. That applicant will then be required to submit FCC
Form 301.

As described more fully in the Commission\'s Rules, after the July 24,
2001 filing deadline, an applicant may make only minor non-technical
corrections to its FCC Form 175 application. Applicants will not be
permitted to make major modifications to their applications. *See* 47
C.F.R. Section 1.2105. For this reason it is critical that all
applicants carefully review their FCC Form 175 submissions prior to the
close of the initial filing window.

(1) **Review of FCC Form 175**

Applicants may review their own and other applicants' completed FCC Form
175s after the filing deadline has passed and the FCC has issued a
public notice concerning the status of the applications. The forms will
be available for review at the Public Reference Center, Office of Media
Relations, 445 Twelfth Street, SW, Suite CY-A257, Washington, D.C.
20554. Applicants may also obtain copies of the forms from the FCC Copy
Contractor, International Transcription Services, Inc., at the same
address, Room CY-B400, (202) 314-3070.

**ATTACHMENT B**

**GUIDELINES FOR COMPLETION**

**OF FCC FORM 175 AND EXHIBITS**

**FOR AM APPLICANTS**

**A. FCC Form 175**

Because of the significance of the FCC Form 175 application to the
auction, applicants should especially note the following:

**Applicants must use the October 2000 version of the FCC Form 175 and
FCC Form 175 Schedule B. Earlier versions of the FCC Form 175 will not
be accepted**. Copies of the FCC Form 175 can be obtained by calling the
Commission's Forms Distribution Center at (800) 418-3676) (outside
Washington, D.C.) or (202) 418-3676) (in the Washington area). Copies
can also be downloaded from the Commission's World Wide Web site at
<http://www.fcc.gov/formpage.html>. If applicants have any questions
concerning availability of the FCC Form 175, they should call the FCC
Records Management Branch at (202) 418-0210.

**Filing Address:** Applications must be submitted by hand delivery
(including private "overnight" courier) or by U.S. mail (certified mail
with return receipt recommended), addressed to:

FCC Form 175 Filing Auction No. 32

Federal Communications Commission

Wireless Telecommunications Bureau

Auctions and Industry Analysis Division

1270 Fairfield Road

Gettysburg, PA 17325-7245

**NOTE: Applications delivered to any other location will not be
accepted.**

**Applicant:** Name given is used as your bidder name in the auction.

**Applicant Address:** Applicants must provide a street address (not a
Post Office box number), suitable for mail or private parcel delivery.

**Applicant Classification:** Applicants must indicate their legal
classification. The FCC Form 175 requires the applicant to classify
itself as an individual, joint venture, partnership, trust, corporation,
consortium, association, limited liability company (LLC) or government
entity.

**Applicant Status:** Applicants are requested to indicate their status
as a rural telephone company, minority-owned business and/or women-owned
business, so that the FCC can monitor its performance in promoting
economic opportunities for these designated entities.

**Bidding Credit Eligibility:** Applicants that qualify for the New
Entrant Bidding Credit must enter the applicable bidding credit (25
percent or 35 percent) in the bidding credit eligibility item on the FCC
Form 175. Applicants are advised that this is the sole opportunity to
select "New Entrant" status and claim a bidding credit level (if
applicable). There is no opportunity to change the election once the
initial short-form filing deadline passes on July 24, 2001.

**Licenses/Construction Permits:** Applicants should list all
assignments on which they want to be eligible to bid in the auction.
Broadcast applicants should use FCC Form 175 Schedule B to list
assignments. Be advised that there is no opportunity to change this list
once the short-form filing deadline passes on July 24, 2001. It is
critically important that you confirm the assignments that you have
selected because the FCC auction system will not accept bids on
assignments for which an applicant has not applied on its FCC Form 175.
(Please note that applicants for the AM facilities must file Section I
and the Tech Box from Section III-A of FCC Form 301 (May 1999 version)
in addition to the FCC Form 175.)

**Authorized Bidders:** Applicants must list the name(s) of the
person(s) (no more than three) authorized to represent them at the
auction. Only those individuals listed on the FCC Form 175 will be
authorized to place or withdraw bids for the applicant during the
auction.

**Certifications:** Applicants should carefully read the list of
certifications on the FCC Form 175. These certifications help to ensure
a fair and competitive auction and require, among other things,
disclosure to the Commission of certain information on applicant
ownership and agreements or arrangements concerning the auction.
Submission of an FCC Form 175 application constitutes a representation
by the certifying official that he or she is an authorized
representative of the applicant, has read the form\'s instructions and
certifications, and that the contents of the application and its
attachments are true and correct. Submission of a false certification to
the Commission may result in penalties, including monetary forfeitures,
license/permit forfeitures, ineligibility to participate in future
auctions, and/or criminal prosecution.

**Contact person/address:** If the Commission wishes to communicate with
the applicant by telephone or fax, those communications will be directed
to the contact person identified on the FCC Form 175. Space is provided
for an address, telephone number, fax number, and e-mail address. All
written communication and registration information will be directed to
the applicant's contact person at the address specified on the FCC Form
175. Applicants must provide a street address; no P.O. Box addresses may
be used.

**Completeness:** Applicants must submit all information required by the
FCC Form 175 and by applicable rules. Failure to submit required
information by the resubmission date will result in dismissal of the
application and inability to participate in the auction. *See* 47 C.F.R.
§ 1.2105(b).

**NOTE:** Failure to sign the FCC Form 175 will result in dismissal of
the application and loss of the ability to participate in the auction.
**Only original signatures will be accepted.**

**Continuing Accuracy:** Each applicant is responsible for the
continuing accuracy and completeness of information furnished in the FCC
Form 175 and its exhibits. *See* 47 C.F.R. § 1.65. Applicants are
reminded that they consent to be audited in the certification section of
the FCC Form 175 (see certification item number 6).

**B. Exhibits and Attachments**

In addition to the FCC Form 175 itself, applicants must submit
additional information required by the Commission\'s rules. Although the
FCC does not require a particular format for this information, it has
developed the following guidelines that will facilitate the processing
of short-form applications. The FCC encourages applicants to submit this
information using the following format.

**Exhibit A \-- Applicant Identity and Ownership Information**: Section
73.5002 of the broadcast competitive bidding procedural rules specifies
the bidding procedures, certification requirements, and anti-collusion
rules applicable to applications for commercial broadcast services that
are subject to auction. Subsection (b) of that rule requires the timely
submission of short-form applications along with all required
certifications, information and exhibits pursuant to the provisions of
47 C.F.R. § 1.2105(a). Section 1.2105, in turn, requires the disclosure
on the short-form of applicant ownership information as set forth in
Section 1.2112. Specifically, 47 C.F.R. § 1.2105(a)(2)(ii) requires each
applicant to fully disclose the real party or parties-in-interest, and
the addresses and citizenship of the parties, in an exhibit to its FCC
Form 175 application. Furthermore, each applicant applying for a New
Entrant Bidding Credit must provide detailed ownership information for
itself and its attributable interest holders, as defined by Section
73.3555 of the Commission\'s rules and by Note 2 to that Section.
Regardless of whether a New Entrant Bidding Credit is being sought, all
applicants must provide the identification and ownership information.

**Exhibit B \-- Agreements with Other Parties/Joint Bidding
Arrangements**: Applicants must attach an exhibit identifying all
parties with whom they have entered into any agreements, arrangements or
understandings of any kind that relate to the construction permits being
auctioned, including any agreements relating to the post-auction market
structure. *See* 47 C.F.R. § 1.2105(a)(2)(viii).

Certification (4) to the FCC Form 175 requires the applicant to certify
that it will not enter into any explicit or implicit agreements or
understandings of any kind with parties not identified in the
application regarding bid amounts, bidding strategies, or the particular
construction permits on which the applicant will or will not bid. *See*
45 C.F.R. § 1.2105(a)(2)(ix)*. Except to the extent provided in 47
C.F.R. § 73.5002 (d),* the prohibition of collusion set forth in 47
C.F.R. § 1.2105(c) becomes effective upon the filing of short-form
applications. To prevent collusion, the Commission\'s Rules *generally*
prohibit communication among applicants for the same mutually exclusive
permits or licenses between the initial short-form applications filing
deadline and the deadline for down payments on construction permits won,
when such communication concerns bids, bidding strategies, or
settlements*.* 47 C.F.R. § 1.2105(c).

**Exhibit C \-- Status as a New Entrant Bidding Credit Recipient:** An
applicant claiming that it qualifies for a 35 percent new entrant credit
must certify under penalty of perjury that neither it nor any of its
attributable interest holders have any attributable interests in any
other media of mass communications, as defined in 47 C.F.R. § 73.5008.
With respect to those qualifying for a 25 percent credit, the applicant
must provide a certification under penalty of perjury that neither it
nor any of its attributable interest holders have attributable interests
in more than three media of mass communications, as defined in 47 C.F.R.
§ 73.5008. In addition, applicants claiming a 25 percent credit shall
identify and describe such media of mass communications. *See* 47 C.F.R.
§§ 73.5007 and 73.5008.

**Exhibit D -- Defaulters and Former Defaulters Information:** Each
applicant must attach an Exhibit certifying that it is not in default on
any Commission construction permit or license and that it is not
delinquent on any non-tax debt owed to a Federal agency. Each applicant
must also attach a statement made under penalty of perjury indicting
whether or not the applicant has ever been in default on any Commission
construction permit or license, or has ever been delinquent on any
non-tax debt owed to any Federal agency.

**Exhibit E \-- Information Requested of Designated Entities:**
Applicants owned by minorities or women, as defined in 47 C.F.R. §
1.2110(c)(3) may attach an exhibit regarding this status. This
information, in conjunction with the information in the Applicant Status
item, will assist the Commission in monitoring the participation of
these \"designated entities\" in its auctions.

**Exhibit F -- Miscellaneous:** Applicants wishing to submit additional
information may do so in Exhibit F.

**NOTE: Applicants should not list their TIN numbers on any Exhibits to
their FCC Form 175s.**

**Certifications:** Applicants should carefully read the list of
certifications on the FCC Form 175. These certifications help to ensure
a fair and competitive auction and require, among other things,
disclosure to the Commission of certain information on applicant
ownership and agreements or arrangements concerning the auction.
Submission of an FCC Form 175 application constitutes a representation
by the certifying official that he or she is an authorized
representative of the applicant, has read the form's instructions and
certifications, and that the contents of the application and its
attachments are true and correct. Submission of a false certification to
the Commission may result in penalties, including monetary forfeitures,
license forfeitures, ineligibility to participate in future auctions,
and/or criminal prosecution.

**Completeness:** Applicants must submit all information required by the
FCC Form 175 and by applicable rules. Failure to submit required
information by the resubmission date will result in dismissal of the
application and inability to participate in the auction. *See* 47 C.F.R.
§ 1.2105(b).

**Continuing Accuracy:** Each applicant is responsible for the
continuing accuracy and completeness of information furnished in the FCC
Form 175 and its exhibits. *See* 47 C.F.R. § 1.65. Applicants are
reminded that they consent to be audited in the certification section of
the FCC Form 175 (*see* certification item number 6).

**ATTACHMENT C**

**ELIGIBILITY FOR** **NEW ENTRANT BIDDING CREDIT;**

**OWNERSHIP DISCLOSURE REQUIREMENTS;**

**CONSORTIA AND JOINT BIDDING ARRANGEMENTS**

**ELIGIBILITY FOR** **NEW ENTRANT BIDDING CREDIT**

**A. General Eligibility Criteria**

To fulfill its obligations under Section 309(j) and further its
long-standing commitment to the diversification of broadcast facility
ownership, the Commission adopted a tiered New Entrant Bidding Credit
for auction applicants with no, or very few other media interests.

(1) **Determination of** **Eligibility for Bidding Credit**

For purposes of determining which entities qualify for a New Entrant
Bidding Credit, the following information should be considered: the
interests of the bidder, and of any individuals or entities with an
attributable interest in the bidder, in other media of mass
communications at the time of the short-form application filing
deadline.

The interests held by the bidder, and by any individual or entity with
an attributable interest in the bidder, in other media of mass
communications shall be considered when determining a bidder\'s
eligibility for the New Entrant Bidding Credit. Under traditional
broadcast attribution rules, those entities or individuals with an
attributable interest in a bidder include: all officers and directors of
a corporate bidder; any owner of 5% or more of the voting stock of a
corporate bidder; all partners and limited partners of a partnership
bidder, unless the limited partners are sufficiently insulated; and all
members of a limited liability company, unless insulated.[^18] In cases
where a bidder's spouse or close family member holds other media
interests, such interests are not automatically attributable to the
bidder. The Commission decides attribution issues in this context based
on certain factors traditionally considered relevant.[^19] Bidders
should note that the mass media attribution rules were recently
revised.[^20]

Bidders are also reminded that, by *Memorandum Opinion and Order*
released August 5, 1999,[^21] the Commission further refined the
eligibility standards for the New Entrant Bidding Credit, judging it
appropriate to attribute the media interests held by very substantial
investors in, or creditors of, a bidder claiming new entrant status.
Specifically, the attributable mass media interests held by an
individual or entity with an equity and/or debt interest in a bidder
shall be attributed to that bidder for purposes of determining its
eligibility for the New Entrant Bidding Credit, if the equity and debt
interests, in the aggregate, exceed 33% of the total asset value of the
bidder, even if such an interest is non-voting. [^22]

Generally, media interests will be attributable for purposes of the New
Entrant Bidding Credit to the same extent that such other media
interests are considered attributable for purposes of the broadcast
multiple ownership rules.[^23] However, attributable interests held by a
winning bidder in existing low power television, television translator
or FM translator facilities will not be counted among the bidders\'
other mass media interests in determining its eligibility for a New
Entrant Bidding Credit.[^24] A medium of mass communications is defined
in 47 C.F.R § 73.5008(b).

The bidder\'s attributable interests shall be determined as of the short
form (FCC Form 175) filing deadline. Bidders intending to divest a media
interest or make any other ownership changes, such as resignation of
positional interests, in order to avoid attribution for purposes of
qualifying for the New Entrant Bidding Credit must have consummated such
divestment transactions or have completed such ownership changes by no
later than the short-form filing deadline.[^25]

Bidders are reminded of their continuing Section 1.65 responsibility to
maintain the accuracy and completeness of information contained in their
short-form applications; if changes in ownership or in the media
interests of the bidder's principals would result in the diminishment or
loss of a claimed New Entrant Bidding Credit at any time after the
short-form filing deadline, such information must be clearly stated in
the bidder's amendment material.[^26]

**(2) Application Showing**

Applicants are required to file supporting documentation as Exhibits A
and C to their FCC Form 175 short-form applications to establish that
they satisfy the eligibility requirements to qualify for a New Entrant
Bidding Credit.[^27] In addition, in those cases where a New Entrant
Bidding Credit is being sought, a certification under penalty of perjury
must be set forth in Exhibit C attesting to the eligibility of the
bidder for the level of Credit claimed.

**B. Bidding Credits**

Applicants that qualify for the New Entrant Bidding Credit, as set forth
in 47 C.F.R. § 73.5007, are eligible for a bidding credit that
represents the amount by which a bidder\'s winning bids are discounted.
The size of a New Entrant Bidding Credit depends on the number of
ownership interests in other media of mass communications that are
attributable to the bidder-entity and its attributable interest-holders:

-   A 35 percent bidding credit will be given to a winning bidder if it,
    and/or any individual or entity with an attributable interest in the
    winning bidder, has no attributable interest in any other media of
    mass communications, as defined in 47 C.F.R. § 73.5008; and,

-   A 25 percent bidding credit will be given to a winning bidder if it,
    and/or any individual or entity with an attributable interest in the
    winning bidder, has an attributable interest in no more than three
    mass media facilities, as defined in 47 C.F.R. § 73.5008; and,

-   No bidding credit will be given if any of the commonly owned mass
    media facilities serve the same area as the proposed broadcast
    station, as defined in 47 C.F.R. § 73.5007, or if the winning
    bidder, and/or any individual or entity with an attributable
    interest in the winning bidder, have attributable interests in more
    than three mass media facilities.

Bidding credits are not cumulative; qualifying applicants receive either
the 25 percent or the 35 percent bidding credit, but not both.
Attributable interests are defined in 47 C.F.R. § 73.3555 and Note 2 of
that section. Bidders should note that unjust enrichment provisions
apply to a winning bidder that utilizes a bidding credit and
subsequently seeks to assign or transfer control its license or
construction permit to an entity not qualifying for the same level of
bidding credit.[^28]

**OWNERSHIP DISCLOSURE REQUIREMENTS**

All applicants must comply with the uniform Part 1 ownership disclosure
standards and provide information set forth in Sections 1.2105 and
1.2112 of the Commission's rules. Specifically, in completing Form 175,
applicants will be required to file in Exhibit A, a full and complete
statement of the ownership of the bidding entity.[^29] The ownership
disclosure standards for the short form are set forth in Section 1.2112
of the Commission's rules. Applicants should note that Section 1.2112
requires the reporting of interests of ten percent or greater of any
FCC-regulated entity or applicant for an FCC license.

Applicants owned by minorities or women, as defined in 47 C.F.R. §
1.2110(c)(3), may attach an exhibit (Exhibit E) regarding this status.
This applicant status information is collected for statistical purposes
only and assists the Commission in monitoring the participation of
\"designated entities\" in its auctions. Applicants wishing to submit
additional information may do so in Exhibit F -Miscellaneous Information
-- to the FCC Form 175.

**CONSORTIA AND JOINT BIDDING ARRANGEMENTS**

Applicants will be required to identify on their short-form applications
any parties with whom they have entered into any consortium
arrangements, joint ventures, partnerships or other agreements or
understandings which relate in any way to the competitive bidding
process. *See* 47 C.F.R. §§ 1.2105(a)(2)(viii); 1.2105(c)(1). Applicants
will also be required to certify on their short form applications that
they have not entered into any explicit or implicit agreements,
arrangements or understandings of any kind with any parties, other than
those identified, regarding the amount of their bids, bidding
strategies, or the particular construction permits on which they will or
will not bid. *See* 47 C.F.R*.* § 1.2105(a)(2)(ix). In cases where such
consortia or joint bidding arrangement are contemplated, applicants must
submit an Exhibit B to the FCC Form 175.

[^1]: Lake Broadcasting, Inc. ("Lake"), former licensee of this
    facility, sought *via* a counterproposal to upgrade the Eldon
    allotment from Class A to Class C1 status. The staff denied that
    counterproposal in the *Report and Order* in MM Docket No. 89-120, 7
    FCC Rcd 1449 (Allocations Br. 1992). The staff dismissed as moot
    Lake's petition for reconsideration in a *Memorandum Opinion and
    Order* in MM Docket No. 89-120, DA 01-930 (Allocations Br., released
    April 13, 2001). On May 14, 2001, Lake filed a petition for
    reconsideration of that action. The staff also dismissed as moot
    related petitions for reconsideration filed by Lake in MM Docket No.
    90-195, DA 01-1016 (Allocations Br., released April 20, 2001); MM
    Docket No. 91-352, DA 01-1017 (Allocations Br., released April 20,
    2001); and MM Docket No. 92-214, DA-1018 (Allocations Br., released
    April 20, 2001). On May 15, 2001, Lake filed applications for review
    of those actions.

[^2]: *Contemporary Media, Inc.*, 13 FCC Rcd 14,437 (1998).

[^3]: A courtesy copy of any interim proposal should also be sent to
    Elizabeth Robinson, Federal Communications Commission, Mass Media
    Bureau, Audio Services Division, Room 2-B450, 445 12^th^ Street,
    N.W., Washington, D.C. 20554.

[^4]: AM applicants should submit the Tech Box in Section III-A of FCC
    Form 301. FM applicants should submit the Tech Box in Section III-B
    of FCC Form 301.

[^5]: The anti-collusion provisions of 47 C.F.R. § 1.2105(c) apply to
    auction applicants after the deadline for short-form auction
    applications (FCC Form 175). While the anti-collusion rule does not
    prohibit non-auction-related business negotiations among auction
    applicants, applicants that file both interim and permanent
    applications are reminded that certain discussions or exchanges
    could broach on impermissible subject matters if they convey
    information on bids or bidding strategies. *See, e.g., Public
    Notice,* "Closed Broadcast Auction: Notice and Filing Requirements
    for Auction of AM, FM, TV, LPTV, FM, and TV Translator Construction
    Permits Scheduled for September 28, 1999," 14 FCC Rcd 10,632, 10,640
    (M.M. Bur./W.T. Bur., released July 9, 1999).

[^6]: *See Public Notices*, "AM Auction Filing Window and Application
    Freeze,", DA 99-2585 (M.M. Bur./W.T. Bur., released November 19,
    1999); "AM Auction No. 32 Mutually Exclusive Applicants Subject to
    Auction," DA 00-2416 (M.M. Bur./W.T. Bur., released October 27,
    2000).

[^7]: *See* 47 C.F.R. § 1.2105(a).

[^8]: *See Public Notices,* "Auction Notice and Filing Requirements for
    FM Broadcast Construction Permits," DA 01-119 (M.M. Bur./W.T. Bur.,
    released January 19, 2001); "Auction For FM Broadcast Construction
    Permits Postponed Until December 5, 2001," (M.M. Bur./W.T. Bur.,
    released March 7, 2001).

[^9]: *Public Notice*, "Auction For FM Broadcast Construction Permits
    Postponed Until December 5, 2001," *supra*, at p. 1.

[^10]: *See* 47 U.S.C. § 309(f); 47 C.F.R. § 73.1635.

[^11]: *See* discussion below on the Motion for Extension of Operating
    Authority filed on June 1, 2001.

[^12]: Reichel Broadcasting Corporation filed comments in support of the
    Petition for Equitable Relief on June 11, 2001, and Central Missouri
    Media, L.L.C. filed comments in support of the pleading on June 12,
    2001.

[^13]: *See, e.g.*, *West Coast Media, Inc.*, 56 RR 2d 483, 484 (1983)
    ("\[A\]s a matter of law, \[the licensee\] no longer has a license
    to transfer" when Commission denial of license renewal application
    was affirmed by the Court of Appeals and the Supreme Court denied
    *certiorari*).

[^14]: *First Report and Order, Implementation of Section 309(j) of the
    Communications Act -- Competitive Bidding for Commercial Broadcast
    and Instructional Television Fixed Service Licenses*, 13 FCC Rcd
    15,920 (1998).

[^15]: *See, e.g.,* "Wireless Telecommunications Bureau Responds to
    Questions About the Local Multipoint Distribution Service Auction,"
    *Public Notice*, 13 FCC Rcd 341 (1998); Application of Nevada
    Wireless for a License to Provide 800 MHz Specialized Mobile Radio
    Service in the Farmington, NM-CO Economic Area (EA-155) Frequency
    Band A, *Memorandum Opinion and Order*, 13 FCC Rcd 11,973, 11,977 ¶
    11 (1998) ("*Nevada Wireless*").

[^16]: *See Nevada Wireless, supra* note 1 at 11,978, ¶ 13.

[^17]: *See* 47 C.F.R. § 1.2105(c).

[^18]: *See* 47 C.F.R. § 73.3555 Note 2.

[^19]: *See* *Clarification of Commission Policies Regarding Spousal
    Attribution*, 7 FCC Rcd 1920 (1992).

[^20]: *See Review of the Commission's Regulations Governing Attribution
    of Broadcast and Cable/MDS Interests*, MM Docket No. 94-150, 14 FCC
    Rcd 12559 (1999), *Memorandum Opinion and Order on Reconsideration*,
    16 FCC Rcd 1097 (2001) (prior history omitted).

[^21]: *Implementation of Section 309(j) of the Communications Act --
    Competitive Bidding for Commercial Broadcast and Instructional
    Television Fixed Service Licenses*, MM Docket No. 97-234, 14 FCC Rcd
    12541 (1999) ("*Bidding Credit Memorandum Opinion and Order*").

[^22]: *See* 47 C.F. R. § 73.5008.

[^23]: Further, any bidder asserting new entrant status must have *de
    facto* as well as *de jure* control of the entity claiming the
    bidding credit. 47 C.F.R. § 73.5007. Typically, *de jure* control is
    evidenced by ownership of at least 50.1 percent of an entity\'s
    voting stock or equivalent level of interest in cases where the
    bidder is not a corporate entity. *De facto* control is determined
    on a case-by-case basis.

[^24]: *Implementation of Section 309(j) of the Communications Act --
    Competitive Bidding for Commercial Broadcast and Instructional
    Television Fixed Service Licenses*, MM Docket No. 97-234,
    *Memorandum Opinion and Order,* 14 FCC Rcd 8724, 8764 (1999).

[^25]: The fact that, on the short form filing deadline, a bidder has a
    pending or granted application to assign or transfer control of a
    media interest shall not be sufficient to avoid attribution. Bidders
    must have consummated the transaction by the short form filing
    deadline to avoid attribution.

[^26]: *See Liberty Productions, a Limited Partnership*, FCC 01-129
    (released May 25, 2001).

[^27]: *See* 47 C.F.R. § 1.2105.

[^28]: *See* 47 C.F.R. § 73.5007(c).

[^29]: Section 73.5002 of the broadcast competitive bidding procedural
    rules specifies the bidding procedures, certification requirements,
    and anti-collusion rules applicable to applications for commercial
    broadcast services that are subject to auction. Subsection (b) of
    that rule requires the timely submission of short-form applications
    *along with all required certifications, information and exhibits
    pursuant to the provisions of 47 C.F.R. § 1.2105(a).* Section
    1.2105, in turn, requires the disclosure on the short-form of
    applicant ownership information as set forth in Section 1.2112.