**APPENDIX B**

Grandfathered Superpowered Stations Operating Within the Reserved Band
as of December 31, 1999

  ----------- ------------ ---------------------------- ----------- ---------------------
  **Call      **Facility   **Community of License**     **Class**   **Class for LPFM
  Sign**      ID**                                                  Protection
                                                                    Determination**[^1]

  WARY        71709        Valhalla, NY                 D           A

  WCEB        13942        Corning, NY                  D           A

  WSIA        65557        Staten Island, NY            D           A

  WGEV        23619        Beaver Falls, PA             D           A

  WFWM        22791        Frostburg, MD                B1          B

  KCEP        50390        Las Vegas, NV                C2          C1

  KFLQ        20637        Albuquerque,NM               C           C

  WAMC        70849        Albany, NY                   B           C1

  WBNI-FM     53745        Fort Wayne, IN               B           C1

  WDTR-FM     6056         Detroit                      B           C1

  WERN        63030        Madison, WI                  B           C1

  WETA        65669        Washington, DC               B           C1

  WGBH        70510        Boston, MA                   B           C1

  WHAD        63901        Delafield, WI                B           C1

  WILL-FM     68940        Urbana, IL                   B           C1

  WKAR-FM     41683        East Lansing, MI             B           C1

  WMBI-FM     66063        Chicago, IL                  B           C1

  WRTI        65190        Philadelphia, PA             B           C1

  WUOM        66319        Ann Arbor, MI                B           C1

  KPFK        51252        Los Angeles, CA              B           C

  KQED-FM     35501        San Francisco, CA            B           C

  KUSC        69318        Los Angeles, CA              B           C

  WIPR-FM     53860        San Juan, PR                 B           C
  ----------- ------------ ---------------------------- ----------- ---------------------

**APPENDIX C**

**FINAL REGULATORY FLEXIBILITY ACT ANALYSIS**

As required by the Regulatory Flexibility Act (RFA),[^2] an Initial
Regulatory Flexibility Analysis (IRFA) was incorporated in the *Notice
of Proposed Rulemaking* (*Notice*).[^3] The Commission sought written
public comment on the proposals in the *Notice*, including comment on
the IRFA. No comments were received in response to the IRFA. This
present Final Regulatory Flexibility Analysis (FRFA) conforms to the
RFA.[^4]

**Need for and Objectives of the *Report and Order***

The Commission received petitions for rulemaking asking for the creation
of a low power radio service. Because they raised similar or identical
issues, the Commission coordinated its responses to them. The Commission
released public notices of its receipt of three of the proposals and
invited public comment on them. In response to significant public
support, the Commission released the *Notice* to propose a new, low
power FM service.

In the *Report and Order*, the Commission is adopting a 100-watt class
(LP100) and a 10-watt class (LP10). Because of the predicted lower
construction and operational costs of LPFM stations as opposed to full
power facilities, we expect that small entities would be expected to
have few economic obstacles to becoming LPFM licensees. Therefore, this
new service may serve as a vehicle for small entities and
under-represented groups (including women and minorities) to gain
valuable broadcast experience and to add their voices to their local
communities.

**Summary of Significant Issues Raised by Public Comments in Response to
the IRFA**

No comments were received in response to the IRFA.

**Description and Estimate of the Number of Small Entities to Which
Rules Will Apply**

The RFA directs agencies to provide a description of and, where
feasible, an estimate of the number of small entities that will be
affected by the rules.[^5] The RFA generally defines the term \"small
entity\" as having the same meaning as the terms \"small business,\"
\"small organization,\" and \"small governmental jurisdiction.\"[^6] In
addition, the term \"small business\" has the same meaning as the term
\"small business concern\" under the Small Business Act.[^7] A small
business concern is one which: (1) is independently owned and operated;
(2) is not dominant in its field of operation; and (3) satisfies any
additional criteria established by the Small Business Administration
(SBA).[^8] A small organization is generally \"any not-for-profit
enterprise which is independently owned and operated and is not dominant
in its field.\"[^9] Nationwide, as of 1992, there were approximately
275,801 small organizations.[^10] "Small governmental jurisdiction"
generally means "governments of cities, counties, towns, townships,
villages, school districts, or special districts, with a population of
less than 50,000."[^11] The Census Bureau estimates that this ratio is
approximately accurate for all governmental entities. Thus, of the
85,006 governmental entities, we estimate that 81,600 (91 per cent) are
small entities.

The Small Business Administration defines a radio broadcasting station
that has \$5 million or less in annual receipts as a small
business.[^12] A radio broadcasting station is an establishment
primarily engaged in broadcasting aural programs by radio to the
public.[^13] Included in this industry are commercial, religious,
educational, and other radio stations.[^14] The 1992 Census indicates
that 96 percent (5,861 of 6,127) radio station establishments produced
less than \$5 million in revenue in 1992. Official Commission records
indicate that 11,334 individual radio stations were operating in
1992.[^15] As of December 31, 1998, Commission records indicate that
12,615 radio stations were operating, of which 7,832 were FM
stations.[^16]

The rules will apply to a new category of FM radio broadcasting service.
It is not known how many entities may seek to obtain a low power radio
license. Nor do we know how many of these entities will be small
entities. We note, however, that in the year since we issued the
*Notice*, the Commission's LPFM website has received approximately
100,000 hits, demonstrating the interest of individuals and groups in
operating such a facility. In addition, we expect that, due to the small
size of low power FM stations, small entities would generally have a
greater interest than large ones in acquiring them.

**Description of Projected Reporting, Recordkeeping, and Other
Compliance Requirements**

The Commission is creating a new broadcasting service that may allow
hundreds or thousands of small entities to become broadcast licensees
for the first time. This endeavor will require the collection of
information for the purposes of processing applications for (among other
things) initial construction permits, assignments and transfers, and
renewals. We will also require lower power radio stations to comply with
some of the reporting, recordkeeping, and other compliance requirements
as full power radio broadcasters.

**Steps Taken to Minimize Significant Economic Impact on Small Entities,
and Significant Alternatives Considered**

The RFA requires agencies to describe any significant alternatives that
it has considered in reaching its proposed approach, which may include
the following four alternatives: (1) the establishment of differing
compliance or reporting requirements or timetables that take into
account the resources available to small entities; (2) the
clarification, consolidation, or simplification of compliance or
reporting requirements under the rule for small entities; (3) the use of
performance rather than design standards; and (4) an exemption from
coverage of the rule, or any part thereof, for small entities.[^17]

The LP100 and LP10 services are likely create significant opportunities
for new small businesses. In addition, the Commission has taken steps to
minimize the impact on existing small broadcasters.

[Creating New Opportunities for Small Businesses]{.underline}. The
*Report and Order* adopts a number of rules designed to help small
businesses obtain and retain LP100 and LP10 licenses. These include
ownership rules, and exemptions from mandatory electronic filing and
main studio requirements.

The *Report and Order* adopts ownership rules to assist small entities
to acquire or construct LPFM stations. Parties with attributable
interests in any full power broadcast facilities are not eligible to
have any ownership interest in any low power radio stations; this
prevents large group owners (or even large single-station owners) from
constructing and operating LPFM facilities that might otherwise be
available to small entities.[^18] The local and national ownership
restrictions of one station per community and, initially, one station,
and ultimately, 10 stations, nationwide are intended to ensure that
ample LPFM stations are available for small entities.[^19] However, the
ownership rules also prohibit small entity full power broadcasters from
acquiring LPFM licenses.

The *Report and Order* also modifies the application of some of our
programming and service requirements for LPFM stations. LPFM stations
are not required to maintain a public file, although they must maintain
a political file.[^20] They also need not create quarterly issues and
programming lists or maintain a main studio.[^21] In addition, while
full power and LPFM stations both must participate in the Emergency
Alert System (EAS) and have decoding equipment, LPFM stations need not
purchase encoding equipment.[^22] In addition, LPFM licensees need not
comply with any EEO program requirements we adopt in our pending
rulemaking proceeding. These exemptions from and modifications of the
application of the Commission's programming and service requirements to
LPFM stations will reduce administrative burdens and costs for small
business licensees.

The *Report and Order* also adopts filing requirements that should help
small businesses. Although the *Notice* proposed to mandate electronic
filing for LPFM stations, the *Report and Order* declined to do so for
the first round of LP100 applications.[^23] The Commission made this
decision because it recognized that there might be a disparity between
applicants for LP100 licenses in terms of computer resources and skills.
This result should help small businesses without more advanced
technological resources to participate in the LP100 application process.
The *Report and Order* adopts a window filing process, as opposed to a
first-come, first-served process; some commenters claimed that the
latter process would favor applicants with superior financial and
technical resources.[^24]

[Minimizing Impact on Existing Small Business Broadcast
Stations]{.underline}. The *Report and Order* has also adopted an
alternative that will minimize the impact on existing small business
broadcast stations. LP100 and LP10 stations will be noncommercial,
educational stations, and so will not compete with small business
commercial broadcasters for advertising revenue.

**Report to Congress**

The Commission will send a copy of the *Report and Order*, including
this FRFA, in a report to be sent to Congress pursuant to the Small
Business Regulatory Enforcement Fairness Act of 1996, *see* 5 U.S.C. §
801(a)(1)(A). In addition, the Commission will send a copy of the
*Report and Order*, including the FRFA, to the Chief Counsel for
Advocacy of the Small Business Administration. A copy of the *Report and
Order* and FRFA (or summaries thereof) will also be published in the
Federal Register. *See* 5 U.S.C. § 604(b).

[^1]: See ¶ 70.

[^2]: *See* 5 U.S.C. § 603. The RFA, *see* 5 U.S.C. § 601 *et seq*., has
    been amended by the Contract With America Advancement Act of 1996,
    Pub. L. No. 104-121, 110 Stat. 847 (1996) (CWAAA). Title II of the
    CWAAA is the Small Business Regulatory Enforcement Fairness Act of
    1996 (SBREFA).

[^3]: Creation of a Low Power Radio Service, MM Docket No. 99-25,
    *Notice of Proposed Rulemaking*, 14 FCC Rcd 2471, 2530-2534 (1999)
    (*Notice*).

[^4]: *See* 5 U.S.C. § 604.

[^5]: 5 U.S.C. § 603(b)(3).

[^6]: 5 U.S.C. § 601(6).

[^7]: 5 U.S.C. § 601(3) (incorporating by reference the definition of
    \"small business concern\" in 15 U.S.C. § 632). Pursuant to the RFA,
    the statutory definition of a small business applies \"unless an
    agency, after consultation with the Office of Advocacy of the Small
    Business Administration and after opportunity for public comment,
    establishes one or more definitions of such term which are
    appropriate to the activities of the agency and publishes such
    definition(s) in the Federal Register.\" 5 U.S.C. § 601(3).

[^8]: Small Business Act, 15 U.S.C. § 632 (1996).

[^9]: 5 U.S.C. § 601(4).

[^10]: 1992 Economic Census, U.S. Bureau of the Census, Table 6 (special
    tabulation of data under contract to Office of Advocacy of the U.S.
    Small Business Administration).

[^11]: 5 U.S.C. § 601(4).

[^12]: 13 C.F.R. § 121.201, SIC code 4832.

[^13]: 1992 Census, Series UC92-S-1, at Appendix A-9.

[^14]: *Id*. The definition used by the SBA also includes radio
    broadcasting stations which also produce radio program materials.
    Separate establishments that are primarily engaged in producing
    radio program material are classified under another SIC number,
    however. *Id*.

[^15]: FCC News Release, No. 31327 (Jan. 13, 1993).

[^16]: FCC News Release, \"Broadcast Station Totals as of September 30,
    1999\" (Nov. 22, 1999).

[^17]: 5 U.S.C. § 603(c)(1)-(4).

[^18]: *See Report and Order* at Part II.D.1.

[^19]: *See Report and Order* at Parts II.D.3, II.D.4.

[^20]: *See Report and Order* at Part II.G.3, II.G.6.

[^21]: *See id.*

[^22]: *See Report and Order* at Part II.G.8.

[^23]: *See Report and Order* at Part II.F.1.

[^24]: *See Report and Order* at Part II.F.2.