Federal Register / Vol. 62, No. 24 / Wednesday, February 5, 1997 / Rules and Regulations 5339

adoption how much they will pay for a

wild horse or burro. Several of those

who expressed opposition to the

proposed rule were concerned that fees

for wild burros would be too high and

animals would not be adopted. A high

demand exists for wild burros and BLM

does not anticipate a problem placing

these animals. Furthermore, in the event

that we cannot adopt individual animals

through the competitive process, we

retain the option of offering them at the

base fee of $125. Under new § 4750.4–

2(c), we can lower the fee even further.

III. Procedural Matters

National Environmental Policy Act

BLM has determined that this rule is

categorically excluded from further

environmental review pursuant to 516

Departmental Manual (DM), Chapter 2,

Appendix 1, Item 1.10, and that the rule

does not meet any of the 10 criteria for

exceptions to categorical exclusion

listed in 516 DM 2, Appendix 2. Under

the Council on Environmental Quality

regulations (40 CFR 1508.4) and

environmental policies and procedures

of the Department of the Interior, the

term ‘‘categorical exclusions’’ means a

category of actions that do not

individually or cumulatively have a

significant effect on the human

environment, and that have been found

to have no such effect in procedures

adopted by a Federal agency, and for

which neither an environmental

assessment nor an environmental

impact statement is required. The

environmental effects of the rule are too

broad and speculative to lend

themselves to meaningful analysis and

will be subject to the National

Environmental Policy Act of 1969, 43

U.S.C. 4332 (2)(C) process on a case-bycase basis.

Executive Order 12866 and Regulatory

Flexibility Act

This rule was not subject to review by

the Office of Management and Budget

under Executive Order 12866. The cost

of complying with the requirements of

the final rule is indistinguishable from

the requirements imposed by the

existing adoption fee regulations.

Further, for the same reasons, the

Department has determined under the

Regulatory Flexibility Act (5 U.S.C. 601

et seq.) that the rule will not have a

significant economic impact on a

substantial number of small entities.

The rule affects only individuals who

may choose to adopt a wild horse or

burro, assuming they meet the

requirements of 43 CFR part 4750.

Because the definition of ‘‘small entity’’

does not include individuals, the rule

will not affect small entities.

Federal Paperwork Reduction Act

The provisions for collection of

information contained at 43 CFR part

4710 have previously been approved by

the Office of Management and Budget

and assigned clearance number 1004–

0042. This rule does not contain

additional information collection

requirements that require approval by

the Office of Management and Budget

under 44 U.S.C. 3501 et seq.

Executive Order 12630

The Department certifies that this

final rule does not represent a

governmental action capable of

interference with constitutionally

protected property rights. Therefore, as

required by Executive Order 12630, the

Department of the Interior has

determined that the rule would not

cause a taking of private property.

Unfunded Mandates Reform Act

BLM has determined that this

regulation is not significant under the

Unfunded Mandates Reform Act of 1995

because it will not result in the

expenditure by State, local, and tribal

governments, in the aggregate, or by the

private sector, of $100 million or more

in any one year. Further, this rule will

not significantly or uniquely effect small

governments.

Executive Order 12988

The Department of the Interior has

determined that this rule meets the

applicable standards provided in

sections 3(a) and 3(b)(2) of Executive

Order 12988.

Authors

The principal authors of this

proposed rule are Lili Thomas of the

Wild Horse and Burro National Program

Office and Bob Barbour of the

Regulatory Affairs Group, BLM, assisted

by Kim Fondren of the Office of the

Solicitor, Department of the Interior.

List of Subjects 43 CFR Part 4700

Animal Welfare, Horses, Penalties,

Public Lands, Range Management,

Reporting and recordkeeping

requirements, Wildlife.

For the reasons stated in the

preamble, BLM is amending Subchapter

B, Chapter II of Title 43 of the Code of

Federal Regulations as set forth below:

Dated: January 3, 1997.

Bob Armstrong,

Assistant Secretary of the Interior.

PART 4700—PROTECTION,

MANAGEMENT, AND CONTROL OF

WILD FREE-ROAMING HORSES AND

BURROS

1. The authority citation for part 4700

continues to read as follows:

Authority: 16 U.S.C. 1331–1340; 18 U.S.C.

47; 43 U.S.C. 315 and 1740.

2. BLM amends part 4700 by revising

§ 4750.4–2 to read as follows:

§ 4750.4–2 Adoption fee.

(a) Does BLM Charge an Adoption Fee

for Wild Horses and Burros?

You must pay an adoption fee for

each wild horse or burro you adopt.

Usually BLM will charge you a $125

base fee. BLM will not charge you an

adoption fee for orphan foals.

(b) Can BLM increase the adoption

fee?

Yes, BLM may increase the adoption

fee. BLM may hold competitive

adoption events for wild horses or

burros. At competitive adoptions,

qualified adopters set adoption fees

through competitive bidding. For these

adoptions, the fee is the highest bid

received over the base fee of $125.

Horses or burros remaining at the end of

a competitive adoption event will be

available for adoption at the established

adoption fee.

(c) May BLM reduce or waive the

adoption fee?

(1) The BLM Director may reduce or

waive the fee when wild horses or

burros are un-adoptable at the base

adoption fee.

(2) A reduction or waiver of the

adoption fee is available only if you are

willing to comply with all regulations

relating to wild horses and burros.

[FR Doc. 97–2797 Filed 2–4–97; 8:45 am]

BILLING CODE 4310–84–P

FEDERAL COMMUNICATIONS

COMMISSION

47 CFR Parts 73 and 74

[MM Docket No. 96–90, FCC 97–17]

Broadcast License Terms

AGENCY: Federal Communications

Commission.

ACTION: Final rule.

SUMMARY: We issue this Report and

Order (‘‘R&O’’) to implement Section

203 of the Telecommunications Act of

1996 (‘‘Telecom Act’’) (Broadcast
5340 Federal Register / Vol. 62, No. 24 / Wednesday, February 5, 1997 / Rules and Regulations

1Public Law 104–104, 110 Stat. 56 (1996).

2The statutory provisions governing the license

terms for broadcast stations are contained in

Section 307(c) of the Communications Act of 1934,

as amended, 47 U.S.C. 307(c).

3Notice of Proposed Rule Making in MM Docket

No. 96–90, FCC 96–169, (released April 12, 1996),

61 FR 17864 (April 23, 1996).

4 Section 74.15 of the Commission’s Rules, 47

CFR 74.15, sets forth the license terms and renewal

cycles for other classes of broadcast facilities.

Licenses for experimental broadcast stations are

issued for 1-year terms under § 74.15(a). Under

§ 74.15(b), licenses for auxiliary broadcast stations

or systems are issued for a period running

concurrently with the license of the associated

broadcast station with which it is licensed. Licenses

for FM and TV booster stations are issued for a

period running concurrently with the license of the

primary stations with which they are used pursuant

to § 74.15(c). Initial licenses for low power TV, TV

translator, and FM translator stations will ordinarily

be issued for a period running until the date

specified in the renewal cycle portion of § 74.15(d)

depending on the geographic area in which the

stations are located. Under our current rules, low

power TV and TV translator stations are ordinarily

renewed for 5 years, and FM translator stations are

ordinarily renewed for 7 years. Section 73.733 of

the Commission’s Rules, 47 CFR 73.733, sets forth

the license terms for international broadcasting

stations, which are normally issued for a term of 7

years.

License Terms). Section 203 eliminates

the statutory distinction between the

maximum allowable license terms for

television stations and radio stations,

and provides that such licenses may be

for terms ‘‘not to exceed 8 years.’’

Amendment of the Commission’s Rules

is necessary to conform them to Section

203 of the Telecom Act. In a Notice of

Proposed Rule Making published on

April 23, 1996, we sought comment on

our request to amend our rules to extend

broadcast license terms to 8 years, as

well as on our request for implementing

this change within the framework of

existing license renewal cycles.

EFFECTIVE DATE: The rule changes

contained in this Report and Order will

become effective March 7, 1997.

FOR FURTHER INFORMATION CONTACT:

Robert Somers, Mass Media Bureau,

Policy and Rules Division, (202) 418–

2130.

SUPPLEMENTARY INFORMATION: This is a

synopsis of the Report and Order in MM

Docket No. 96–90, FCC 97–17, adopted

January 23, 1997, and released January

24, 1997. The complete text of this

Report and Order is available for

inspection and copying during normal

business hours in the FCC Reference

Center (Room 239), 1919 M Street, NW,

Washington, DC, and also may be

purchased from the Commission’s copy

contractor, International Transcription

Service (ITS), (202) 857–3800, 1919 M

Street, NW., Room 246, Washington, DC

20554.

I. Synopsis of Report and Order

Extending License Terms for Broadcast

Facilities

1. On February 8, 1996, President

Clinton signed into law the

Telecommunications Act of 1996

(‘‘Telecom Act’’).1 Section 203 of the

Telecom Act modifies the previous

statutory provisions regarding license

terms for broadcast stations in two

principal ways.2 First, it eliminates the

statutory distinction between the

maximum allowable license terms for

television stations and radio stations.

Second, Section 203 provides that such

licenses may be for terms ‘‘not to exceed

8 years,’’ thus increasing the previous

allowable statutory maximum terms of 5

years for television stations and 7 years

for radio stations.

2. On April 12, 1996, we issued a

Notice of Proposed Rule Making

(‘‘NPRM’’) 3 to implement these new

statutory provisions regarding broadcast

license terms. Specifically, we sought

comment on our proposals to extend

broadcast license terms to 8 years, to

treat all but experimental broadcast

stations uniformly for purposes of

license terms, and to maintain the

existing synchronization of the

broadcast license renewal cycle based

on 8-year license terms by extending the

terms of recently renewed licenses. In

this Report and Order, the Commission

adopts these proposals.

II. Background

3. Section 307(c) of the

Communications Act of 1934, as

amended, (‘‘Communications Act’’) 47

U.S.C. 307(c), authorizes the

Commission to establish the period or

periods for which licenses shall be

granted or renewed. Prior to the

enactment of the Telecom Act, Section

307(c) provided that the licenses of

television stations, including low power

TV stations, could be issued for a term

of no longer than 5 years. It further

provided that license terms for radio

stations, including auxiliary facilities,

could be issued for a period not to

exceed 7 years. These were the

maximum allowable license terms and

the Commission had the discretion to

grant or renew a broadcast license for a

shorter period if the public interest,

convenience, and necessity would be

served by such action. Consistent with

these statutory provisions, § 73.1020 of

the Commission’s Rules currently states

that ‘‘[r]adio broadcasting stations will

ordinarily be renewed for 7 years and

TV broadcast stations will be renewed

for 5 years. However, if the FCC finds

that the public interest, convenience

and necessity will be served thereby, it

may issue either an initial license or a

renewal thereof for a lesser term.’’ 47

CFR 73.1020. Section 73.1020 also sets

forth a renewal schedule for broadcast

stations based on the geographical

region of the country in which each

station is located.4

4. Section 203 of the Telecom Act

amends Section 307(c) of the

Communications Act to read as follows:

Each license granted for the operation of a

broadcasting station shall be for a term of not

to exceed 8 years. Upon application therefor,

a renewal of such license may be granted

from time to time for a term of not to exceed

8 years from the date of expiration of the

preceding license, if the Commission finds

that public interest, convenience, and

necessity would be served thereby.

Consistent with the foregoing provisions of

this subsection, the Commission may by rule

prescribe the period or periods for which

licenses shall be granted and renewed for

particular classes of stations, but the

Commission may not adopt or follow any

rule which would preclude it, in any case

involving a station of a particular class, from

granting or renewing a license for a shorter

period than that prescribed for stations of

such class if, in its judgment, the public

interest, convenience, or necessity would be

served by such action.

III. Discussion

5. Comments. Most commenters,

including the National Broadcasting

Company (‘‘NBC’’), Capital Cities/ABC,

Inc. (‘‘ABC’’), the National Association

of Broadcasters (‘‘NAB’’), and the

Association of Local Television Stations

(‘‘ALTV’’), support our proposal for 8-

year license terms and agree with the

rationale set forth in the NPRM. Two

parties, the Media Access Project and

the Center for Media Education (‘‘MAP/

CME’’), filed joint comments disagreeing

with our proposal and rationale for 8-

year license terms. According to MAP/

CME, the Commission should exercise

its discretion to extend license terms

only if it adds quantitative requirements

for locally originated programming

addressing community issues, news,

and children’s educational

programming. MAP/CME also assert

that the Commission’s rationale

improperly focuses on the best interests

of broadcasters rather than on the public

interest. We address these comments in

the course of the substantive discussion

below.

6. License Terms for Full Service

Broadcast Stations. The Telecom Act

eliminated the statutory distinction

between television and radio services

for purposes of establishing the

maximum allowable license terms. In

this regard, the legislative history states:
Federal Register / Vol. 62, No. 24 / Wednesday, February 5, 1997 / Rules and Regulations 5341

5NPRM at ¶ 6.

6S. Conf. Rep. 104–230, 104th Cong. 2d Sess. 164

(1996).

7See S. Conf. Rep. 104–230, 104th Cong. 2d Sess.

1 (1996) (purpose of Telecom Act is ‘‘* * * to

provide for a pro-competitive, de-regulatory

national policy framework * * *.’’); S. Conf. Rep.

96–878, 96th Cong. 2d Sess. 1 (1980) (purpose of

Regulatory Flexibility Act is ‘‘to encourage Federal

agencies to utilize innovative administrative

procedures in dealing with individuals, small

businesses, small organizations, and small

governmental bodies that would otherwise be

unnecessarily adversely affected by Federal

regulations’’). See also Review of Prime Time Access

Rule, 11 FCC Rcd 546 (1995) (repealing prime time

access rule as no longer necessary to serve the

public interest).

8 Deregulation of Radio, 84 FCC 2d 968, 971

(1981), recon. 87 FCC 2d 797 (1981), remanded on

other grounds sub nom. Office of Communications

of the United Church of Christ v. FCC, 707 F.2d

1413 (D.C. Cir. 1983). Most commenters support

extending broadcast license terms to 8 years. See

National Association of Broadcasters (‘‘NAB’’)

Comments at 1–2; Capital Cities/ABC, Inc. (‘‘CC/

ABC’’) Comments at 1–2; NBC Comments at 2;

Association of Local Television Stations (‘‘ALTV’’)

Reply Comments at 3–6. Commenters point out that

longer license terms may encourage more long-term

planning and capital investments in the industry.

They further believe that 8-year license terms may

promote more innovations in programming and

service, as stations will have a longer period in

which to develop a record of performance with

previously untested or novel formats. See, e.g., NBC

Comments at 2.

9The 5 and 7 year terms for new licenses and

license renewals were enacted into law pursuant to

the Omnibus Budget Reconciliation Act of 1981.

Public Law 97–35, 95 Stat. 357. That legislation

amended Section 307 of the Communications Act,

extending the maximum allowable 3-year license

term previously prescribed for both radio and

television stations.

10MAP/CME Comments at 3–4. The Commission

recently implemented the new two-step renewal

process. See Implementation of Sections 204(a) and

204(c) of the Telecommunications Act of 1996

(Broadcast License Renewal Procedures), FCC No.

96–172 (released April 12, 1996).

11This reminder applies to radio as well as

television broadcasters, although the extension of

the radio license term from 7 to 8 years is a small

one compared to the extension of television license

terms from 5 to 8 years. We note in this regard that

in its recent decision adopting revised children’s

television rules, the Commission stated that it

would monitor industry compliance with the

Children’s Television Act of 1990 (‘‘CTA’’) by

requiring commercial broadcast television stations

to place in their public inspection files quarterly

reports regarding their compliance with the CTA

and, for an experimental period of three years, to

file these children’s programming reports with the

Commission on an annual basis. Report and Order

in MM Docket No. 93–48, FCC 96–335, at ¶ 140

(released Aug. 8, 1996). The Commission also stated

that Commission staff will conduct selected

individual station audits during this time period to

assess station performance under the new

children’s television rules. Id.

12See also infra paragraph 10.

13MAP/CME Comments at 3–5.

14MAP/CME Reply Comments at 4–5.

‘‘By applying a uniform license term

* * * for all broadcast station licenses,

the Committee simply recognizes that

there is no reason for longer radio

license terms than for television

licenses. The Committee intends that

applying a uniform license term * * *

for radio and television licenses will

enable the Commission to operate more

efficiently in the awarding of new or

renewed licenses for all broadcast

licenses.’’ H.R. Rep. No. 104–204,

Section 304, 104th Cong., 1st Sess. 122

(1995). The NPRM proposed to

eliminate the current distinction in our

rules between the license terms for full

service broadcast television stations and

radio stations.5 No commenter takes

issue with this proposal. Indeed,

eliminating this distinction would help

to streamline the licensing process and

better utilize the administrative

resources of both licensees and the

Commission. Accordingly, we hereby

amend Section 73.1020 of the

Commission’s Rules, 47 CFR 73.1020, to

eliminate any distinction between full

service television and radio stations for

purposes of establishing the maximum

allowable license terms.

7. In addition to eliminating the

distinction between full service

television and radio station licenses, we

also believe it is in the public interest

to adopt our proposal in the NPRM to

provide that these licenses ordinarily

have the maximum 8-year term

authorized under the Telecom Act.

While the statutory language provides

the Commission discretion in this area,

the Act’s legislative history indicates a

clear Congressional intent that the

Commission adopt the maximum 8-year

license term. Indeed, the Conference

Report states that Section 203 of the

Telecom Act ‘‘extends the license term

for broadcast licenses to eight years for

both television and radio.’’ 6 Extending

broadcast license terms will reduce the

burden to broadcasters of seeking more

frequent renewal of their licenses and

the associated burdens on the

Commission. This is in accord with

longstanding Congressional and

Commission policy in favor of reducing

regulatory burdens wherever

appropriate.7 By reducing such burdens,

we will allow broadcasters to operate

more efficiently in an increasingly

competitive marketplace, and thus help

‘‘assure the maximum service to the

public at the lowest cost and with the

least amount of regulation and

paperwork.’’ 8 Given this, and the clear

Congressional intent in enacting Section

203 of the Telecom Act, we will

ordinarily provide broadcasters with the

maximum 8-year term. This decision is

consistent with past Commission

practice; our current rules provide for

the maximum license terms in

accordance with previous statutory

maximum terms of 5 years for television

stations and 7 years for radio stations.9

8. MAP/CME opposes extending

broadcast license terms to eight years. It

asserts that longer license terms will

undermine meaningful public review of

broadcasters’ performance, especially

when considered in conjunction with

the new two-step license renewal

process mandated under Sections 204

(a) and (c) of the Telecom Act which

eliminates comparative renewal

hearings and directs the Commission to

grant a broadcaster’s renewal if certain

public interest renewal standards are

met.10 While we acknowledge MAP/

CME’s concerns, on balance, we believe

adopting the maximum terms provided

by statute is in the public interest and

is consistent with Congressional intent.

We do not intend that this action should

affect licensees’ compliance with public

interest obligations and our ability to

monitor such compliance. Hence, we

remind broadcasters that their public

interest responsibilities extend

throughout the entire license term.11

Additionally, the public will continue

to have the ability to scrutinize station

performance or to bring to the

Commission’s attention any

shortcomings in performance by filing

petitions to deny and informal

objections at renewal time. Likewise,

the public’s right to file complaints with

the Commission at any time during the

license term is unaffected by longer

license terms. To the extent MAP/CME

believes it is necessary to revise license

renewal standards to provide a better

measure to evaluate licensee

performance in the absence of

comparative renewal challenges, that

issue is not before us in this

proceeding.12

9. MAP/CME also asserts that the

Commission’s rationale for extending

license terms improperly focuses on

what best serves the interests of

broadcasters, rather than on the best

interests of viewers and listeners.13 In

addition, MAP/CME challenges NBC’s

assertions that longer license terms will

create more stability among broadcasters

and result in more capital investment in

public service and innovative

programming. MAP/CME asserts that

NBC’s claimed public benefits are

entirely hypothetical and that there is

no evidence from past deregulation that

broadcasters will invest additional

money in improved programming.14 As

noted above, however, eliminating

unnecessary regulatory burdens can

allow the competitive marketplace to

operate more efficiently, which in turn

can enhance the opportunity to further

the public interest through improved

service delivered to the public. We

believe Congress, in providing us
5342 Federal Register / Vol. 62, No. 24 / Wednesday, February 5, 1997 / Rules and Regulations

15MAP/CME Comments at 2–4; MAP/CME Reply

Comments at 2.

16See Report and Order in MM Docket No. 92–

168, 9 FCC Rcd 6504 (1994).

17See NBC Comments at 3.

18ABC/Capital Cities Comments at 4.

19Network auxiliary licenses and video

microwave licenses are processed in the Gettysburg

office of the Commission’s Wireless

Telecommunications Bureau. We will implement

the linkage proposed by ABC, and the new 8-year

license terms for these network auxiliary and

microwave facilities, as the licenses for these

facilities come up for renewal. Commission staff

will process these renewals so that, over the course

of time, the license terms for these facilities will be

linked to the license terms of full-service broadcast

stations in the same state and share the same 8-year

term, except for those facilities which serve more

than a single state. In those instances where

multiple states are served by a facility, the license

term will continue to be based on the date of initial

license grant rather than the license terms of fullservice broadcast stations for a particular state.

authority to do so, made the same

reasonable judgment that lengthening

broadcast license terms is an

appropriate deregulatory measure that

would lead to public benefits. If, after

some experience with the new 8-year

license term, MAP/CME believes the

new term is adversely affecting the

public interest, it may bring its concerns

to our attention at that time.

10. Finally, MAP/CME argues the

Commission should extend broadcast

license terms to the maximum 8-year

period only if it adds quantitative

requirements for locally-originated

programming addressing community

issues, news, and children’s educational

programming.15 As noted above, see

paragraph 8, we believe that MAP/

CME’s proposal is beyond the scope of

this proceeding.

11. In sum, we find that the 8-year

term, on balance, would serve the

public interest. Accordingly, we amend

our rules to provide that broadcast

licenses ordinarily have the maximum

8-year term authorized under the

Telecom Act. As stated in the NPRM, we

believe that this result will reduce the

burden on broadcasters and is

consistent with both past Commission

practice and the legislative history of

the Telecom Act. We believe this change

in broadcast license terms on balance is

consistent with the public interest since

licensees will continue to be subject to

scrutiny by both the public and the

Commission. In keeping with this

concern, we reiterate that Section 203 of

the Telecom Act, as well as our revised

rules, explicitly reserve the

Commission’s authority to grant

individual licenses for less than the

statutory maximum if the public

interest, convenience, and necessity

would be served by such action.

12. Other Classes of Broadcast

Stations. Section 203 of the Telecom

Act states in part: ‘‘the Commission may

by rule prescribe the period or periods

for which licenses shall be granted and

renewed for particular classes of

stations * * *.’’ While this provision

provides us authority to designate

different license terms for particular

classes of stations (provided that they

do not exceed 8 years), we proposed in

the NPRM to treat all but experimental

broadcast stations uniformly.

13. As proposed in the NPRM, we will

track the approach we take with fullservice stations and adopt an 8-year

license term for FM and TV translator

facilities and low power TV stations, as

well as for international broadcasting

stations. This approach is consistent

with our current practice of treating

these different classes of stations

uniformly.16 We believe that each of

these services will benefit from the

stability and reduced administrative

burden which will result from a longer

license term. Because of the tentative

nature and limited purpose of

experimental stations, however, it

would not be appropriate to grant such

stations longer license terms and they

will continue to be licensed for one-year

terms. Commenters agreed with this

approach.17

14. We will also continue our

practice, set forth in § 74.15 (b) and (c)

of our Rules, of tying the license terms

for auxiliary and booster facilities to the

license terms of the broadcast stations

with which they are associated. Our

current practice of tying the license

terms of all auxiliary and booster

facilities with the main station license

eases the administrative burden on both

Commission staff and broadcast station

licensees, who would otherwise need an

intricate record-keeping system to

ensure that all licenses were renewed at

the appropriate time.

15. ABC/Capital Cities seeks

clarification concerning auxiliary

facilities used by television and radio

networks. ABC believes it would be

preferable for all licenses of a given

network entity in the same state to come

up for renewal at the same time to

eliminate potential discrepancies that

may exist under the current system. It

requests that the Commission specify in

§ 74.15(b) of the Commission’s Rules

that television network auxiliary

licenses shall have terms running

concurrently with television broadcast

stations located in the same state, and

that radio network auxiliary licenses

shall have terms running concurrently

with radio broadcast stations located in

the same state. ABC/Capital Cities also

urges that the renewal terms for video

microwave licenses issued under

§ 74.15(f) of the Commission’s Rules run

concurrently with the terms of

television network auxiliary licenses

granted under Subparts D and H of Part

74 of the Commission’s Rules.18

16. We agree with the ABC/Capital

Cities proposals concerning television

and radio network auxiliary licenses

and video microwave licenses. We

believe that these proposals are

consistent with both the Telecom Act

and the NPRM and would simplify the

license renewal process and eliminate

potential confusion about renewal dates

by treating these different classes of

broadcast licenses uniformly.

Accordingly, network auxiliary stations

and video microwave licenses will

generally be linked to the license terms

of full-service broadcast stations in the

same state, and will ordinarily be

granted for a term of 8 years.19

17. Implementation of Amended

License Term Provisions. Section 203 of

the Telecom Act and the legislative

history are silent as to whether existing

broadcast station licenses may be

modified immediately to conform to any

new license terms that may be adopted.

18. As we noted in the NPRM the

implementation issue is important

because of the logistics involved in

renewing broadcast licenses. Under

§§ 73.1020 and 74.15 of the

Commission’s Rules, all of the licenses

for a particular class of broadcast

stations expire at fixed intervals over a

3-year period. To stagger the processing

of renewal applications and thus

perform this task more efficiently, the

country is divided into 18 different

regions containing 1 or more states for

purposes of establishing synchronized

schedules for radio and television

license renewals. The radio renewal

schedule and the television renewal

schedule operate on separate and

distinct cycles that do not run

concurrently. Accordingly, once all

radio licenses have been renewed as

scheduled, there is a 50-month hiatus

before the radio renewal cycle begins

again. Similarly, once all television

licenses have been renewed as

scheduled, there is a 26-month hiatus

before the television renewal cycle

begins again.

19. Because of the cyclical nature of

this process, any change in the length of

the license term implemented in the

middle of a renewal cycle could

undermine the synchronization of the

whole renewal process. In 1981, when

Congress last amended the length of

broadcast license terms, two factors

allowed us to avoid any such

synchronization problems. First, under
Federal Register / Vol. 62, No. 24 / Wednesday, February 5, 1997 / Rules and Regulations 5343

20The first group of television licenses, which

expired on October 1, 1996, include the renewal

applications for television stations in Maryland, the

District of Columbia, Virginia, and West Virginia. In

addition, license renewal applications for television

stations in North Carolina, South Carolina, Florida,

Puerto Rico, and the Virgin Islands, are currently

on file, or will be on file with the Commission,

prior to the conclusion of this proceeding, and at

least some of these applications may be granted by

that time. Accordingly, the synchronization

problems previously discussed in the radio license

context may also be a problem with some television

license renewals.

21NAB Comments at 3; NBC Comments at 3–4;

Capital Cities/ABC Reply Comments at 2; ALTV

Reply Comments at 5–6.

22NAB Comments at 2–3.

23NBC Comments at 3–4.

24We will, as required by the Telecom Act,

reserve the right to grant renewals in particular

cases for less than the maximum term if the public

interest would be served by such action.

25See Report and Order in CC Docket No. 83–371,

53 R.R. 2d 1514 (1983).

26See, e.g., Committee For Effective Cellular Rules

v. FCC, 53 F.3d 1309 (D.C. Cir. 1995); WBEN, Inc.,

v. FCC, 396 F.2d 601 (2d Cir.), cert. denied, 393 U.S.

914 (1968); see also National Broadcasting Co. v.

United States, 319 U.S. 190 (1943); California

Citizens Band Association v. United States, 375

F.2d 43 (9th Cir. 1967), cert. denied, 389 U.S. 844

(1967).

27Notice of Proposed Rule Making in MM Docket

No. 96–90 (Released April 12, 1996).

28Subtitle II of CWAAA is The Small Business

Regulatory Enforcement Fairness Act of 1996

(SBREFA), codified at 5 U.S.C. 601 et seq.

the statute in effect at that time, both

radio and television licenses had 3-year

maximum terms and the renewal cycles

for radio and television ran

concurrently. Furthermore, the renewal

cycles for both radio and television had

not yet begun when the rules

implementing the amended statute took

effect. Accordingly, pursuant to the

explicit Congressional mandate

contained in the amended statute,

Public Law 97–35, 95 Stat. 357,736

(1981), the Commission applied the

longer license terms prospectively as

stations came up for renewal following

the legislation’s enactment. See Order,

Amendment of Section 73.1020 of the

Commission’s Rules, 88 F.C.C. 2d 355,

356 (1981).

20. There is, however, a significant

difference between the renewal

situation in 1981 and the current

situation. By the time the Telecom Act

of 1996 was enacted in February 1996,

the renewal cycle had already begun for

radio stations in several regions of the

country. Specifically, the licenses for

radio stations in Maryland, the District

of Columbia, Virginia, West Virginia,

North Carolina, and South Carolina

have either already been renewed under

the previous license term guidelines, or

are still pending. Similarly, renewal

applications for radio stations in

Florida, Puerto Rico, the Virgin Islands,

Alabama, Georgia, Arkansas, Louisiana,

and Mississippi were already on file

with the Commission at the time the

1996 Act was enacted, and may be ripe

for grant before the conclusion of this

proceeding. The practical effect of this

situation is that radio licenses that have

already been renewed for the current

maximum allowable 7-year term will

have shorter terms than radio licenses

renewed later in the renewal cycle,

which would become subject to the 8-

year term we now adopt. When the

previously granted 7-year licenses

expire the radio renewal process will no

longer be synchronized. This may also

be the case for some television licenses

given that the current television renewal

cycle is now underway.20

21. NAB, NBC, ABC/Capital Cities,

and ALTV all agree that maintaining the

synchronization of the renewal process

is crucial and should be facilitated by

Commission rule.21 NAB states that

synchronization allows the Commission

to predict its staffing needs with greater

precision and is convenient for the

public since all stations serving a

market will generally come up for

renewal at the same time. NAB further

states that if the Commission has

determined that the public interest

would be served by granting a renewal,

a one-year extension of the license term

would not raise any additional public

interest question.22 NBC states that if

this proceeding is still pending when

the television renewal cycle begins, the

Commission should adopt the same

plan it has proposed for radio license

and by rule extend previously granted

television licenses to 8-year terms.23

22. We agree with these commenters,

and believe that maintaining the

predictability, administrative

efficiencies, and fairness inherent in the

existing synchronized schedule of

renewal cycles would serve the public

interest. We therefore adopt, as

proposed in the NPRM, an 8-year

license term, to be implemented as

follows. For broadcast renewal

applications granted after the effective

date of a decision in this proceeding, we

will ordinarily grant the renewed

license for the maximum proposed term

of 8 years.24 For renewal applications

that have been filed as part of the

current renewal cycle (e.g., the cycle

beginning October 1, 1995 for radio

stations, and October 1, 1996 for

television stations) and that have been

granted only the maximum 7-year or 5-

year license term provided under our

current rules because they were

processed prior to a decision in this

proceeding, we will extend the already

renewed 7-year or 5-year license term

for such stations to the proposed 8-year

term. We consequently direct the staff to

modify the terms of such licenses to

afford these licensees the newly

authorized 8-year term and to ensure

synchronization of such licenses with

future renewal cycles. The Commission

adopted a similar approach in 1983

when it extended existing common

carrier and satellite licenses from 5 to 10

years.25 As noted in that decision, the

Commission’s authority to modify the

provisions of existing licenses by rule

making had been upheld on several

occasions.26 We believe that this

approach is consistent with the

discretion we are given by the Telecom

Act to prescribe rules governing the

period or periods for which licenses are

granted for particular classes of stations.

IV. Paperwork Reduction Act of 1995

Analysis

23. The decision herein has been

analyzed with respect to the Paperwork

Reduction Act of 1995, Public Law 104–

13, and found to impose or propose no

modified information collection

requirement on the public.

V. Final Regulatory Flexibility Analysis

24. As required by Section 603 of the

Regulatory Flexibility Act, 5 U.S.C. 603

(RFA), an Initial Regulatory Flexibility

Analysis (‘‘IRFA’’) was incorporated in

Implementation of Section 203 of The

Telecommunications Act of 1996

(Broadcast License Terms) Sections

73.1020 and 74.15, Notice of Proposed

Rule Making in MM Docket No. 96–90

(‘‘NPRM’’).27 The Commission sought

written public comments on the

proposals in the NPRM including on the

IRFA. The Commission’s Final

Regulatory Flexibility Analysis

(‘‘FRFA’’) in this Report and Order

conforms to the RFA, as amended by the

Contract With America Advancement

Act of 1996, Public Law 104–121, 110

Stat. 847 (1996) (‘‘CWAAA’’).28

A. Need For and Objectives of Action 25

25. On February 8, 1996, President

Clinton signed into law the

Telecommunications Act of 1996

(‘‘Telecom Act’’). Section 203 of the

Telecom Act modifies the previous

statutory provisions contained in 47

U.S.C. 307(c) regarding license terms for

broadcast stations in two principal

ways. First, it eliminates the statutory

distinction between the maximum

allowable license terms for television

stations and radio stations. Second,

Section 203 provides that such licenses

may be for terms ‘‘not to exceed 8

years,’’ thus increasing the previous

statutory maximum terms of 5 years for
5344 Federal Register / Vol. 62, No. 24 / Wednesday, February 5, 1997 / Rules and Regulations

29 This revenue cap appears to apply to

noncommercial educational television stations, as

well as to commercial television stations. See

Executive Office of the President, Office of

Management and Budget, Standard Industrial

Classification Manual (1987), at 283, which

describes ‘‘Television Broadcasting Stations (SIC

Code 4833) as:

Establishments primarily engaged in broadcasting

visual programs by television to the public, except

cable and other pay television services. Included in

this industry are commercial, religious, educational

and other television stations. Also included here are

establishments primarily engaged in television

broadcasting and which produce taped television

program materials.

30We have pending proceedings seeking

comment on the definition of and data relating to

small businesses. In our Notice of Inquiry in GN

Docket No. 96–113 (In the Matter of Section 257

Proceeding to Identify and Eliminate Market Entry

Barriers for Small Businesses), FCC 96–216,

released May 21, 1996, we requested commenters

to provide profile data about small

telecommunications businesses in particular

services, including television, and the market entry

barriers they encounter, and we also sought

comment as to how to define small businesses for

purposes of implementing Section 257 of the

Telecommunications Act of 1996, which requires us

to identify market entry barriers and to prescribe

regulations to eliminate those barriers. The

comment and reply comment deadlines in that

proceeding have not yet elapsed. Additionally, in

our Order and Notice of Proposed Rule Making in

MM Docket No. 96–16 (In the Matter of

Streamlining Broadcast EEO Rule and Policies,

Vacating the EEO Forfeiture Policy Statement and

Amending Section 1.80 of the Commission’s Rules

to Include EEO Forfeiture Guidelines), 11 FCC Rcd

5154 (1996), we invited comment as to whether

relief should be afforded to stations: (1) Based on

small staff and what size staff would be considered

sufficient for relief, e.g., 10 or fewer full-time

employees; (2) based on operation in a small

market; or (3) based on operation in a market with

a small minority work force. We have not

concluded the foregoing rule making.

television stations and 7 years for radio

stations. The purpose of this Report and

Order is to amend the Commission’s

Rules to conform to the provision of

Section 203 of the Telecom Act.

B. Significant Issues Raised by the

Public in Response to the Initial

Analysis

26. No comments were received

specifically in response to the IRFA

contained in the NPRM. However,

commenters generally addressed the

effects of the proposed rules on

broadcast stations. Most commenters,

including the National Association of

Broadcasters (‘‘NAB’’), National

Broadcasting Company (‘‘NBC’’),

Association of Local Television

Stations, Inc. (‘‘ALTV’’), and Capital

Cities/ABC, Inc. (‘‘Capital Cities/ABC’’),

supported the proposed rules, believing

that longer license terms for both radio

and television broadcast stations would

reduce the administrative burden on

broadcast licensees. The Media Access

Project and the Center for Media

Education (‘‘MAP/CME’’) opposed the

proposed rules and supported the

creation of additional regulatory

requirements on broadcast licensees as

a prerequisite to allowing longer

broadcast license terms. As discussed in

Section V of this FRFA, we have

addressed these concerns.

C. Description and Number of Small

Entities To Which the Rule Will Apply

i. Definition of a ‘‘Small Business’’

27. Under the RFA, small entities may

include small organizations, small

businesses, and small governmental

jurisdictions. 5 U.S.C. 601(6). The RFA,

5 U.S.C. 601(3), generally defines the

term ‘‘small business’’ as having the

same meaning as the term ‘‘small

business concern’’ under the Small

Business Act, 15 U.S.C. 632. 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’’). According to

the SBA’s regulations, entities engaged

in television broadcasting Standard

Industrial Classification (‘‘SIC’’) Code

4833—Television Broadcasting Stations,

may have a maximum of $10.5 million

in annual receipts in order to qualify as

a small business concern. 29 Similarly,

entities engaged in radio broadcasting,

SIC Code 4832—Radio Broadcasting

Stations, have a maximum of $5 million

in annual receipts to qualify as a small

business concern. 13 CFR 121.101 et

seq. This standard also applies in

determining whether an entity is a small

business for purposes of the RFA.

28. Pursuant to 5 U.S.C. 601(3), the

statutory definition of a small business

applies ‘‘unless an agency after

consultation with the Office of

Advocacy of the SBA 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.’’ While we tentatively believe

that the foregoing definition of ‘‘small

business’’ greatly overstates the number

of radio and television broadcast

stations that are small businesses and is

not suitable for purposes of determining

the impact of the new rules on small

television radio stations, and auxiliary

services, we did not propose an

alternative definition in the IRFA.30

Accordingly, for purposes of this Report

and Order, we utilize the SBA’s

definition in determining the number of

small businesses to which the rules

apply, but we reserve the right to adopt

a more suitable definition of ‘‘small

business’’ as applied to radio and

television broadcast stations and to

consider further the issue of the number

of small entities that are radio and

television broadcasters in the future.

Further, in this FRFA, we will identify

the different classes of small radio and

television stations that may be impacted

by the rules adopted in this Report and

Order.

ii. Issues in Applying the Definition of

a ‘‘Small Business’’

29. As discussed below, we could not

precisely apply the foregoing definition

of ‘‘small business’’ in developing our

estimates of the number of small entities

to which the rules will apply. Our

estimates reflect our best judgments

based on the data available to us.

30. An element of the definition of

‘‘small business’’ is that the entity not

be dominant in its field of operation. We

were unable at this time to define or

quantify the criteria that would

establish whether a specific television

station is dominant in its field of

operation. Accordingly, the following

estimates of small businesses to which

the new rules will apply do not exclude

any television station from the

definition of a small business on this

basis and are therefore overinclusive to

that extent. An additional element of the

definition of ‘‘small business’’ is that the

entity must be independently owned

and operated. We attempted to factor in

this element by looking at revenue

statistics for owners of television

stations. However, as discussed further

below, we could not fully apply this

criterion, and our estimates of small

businesses to which the rules may apply

may be overinclusive to this extent. The

SBA’s general size standards are

developed taking into account these two

statutory criteria. This does not

preclude us from taking these factors

into account in making our estimates of

the numbers of small entities.

31. With respect to applying the

revenue cap, the SBA has defined

‘‘annual receipts’’ specifically in 13 CFR

121.104, and its calculations include an

averaging process. We do not currently

require submission of financial data

from licensees that we could use in

applying the SBA’s definition of a small

business. Thus, for purposes of

estimating the number of small entities

to which the rules apply, we are limited

to considering the revenue data that are

publicly available, and the revenue data

on which we rely may not correspond

completely with the SBA definition of

annual receipts.

32. Under SBA criteria for

determining annual receipts, if a

concern has acquired an affiliate or been

acquired as an affiliate during the
Federal Register / Vol. 62, No. 24 / Wednesday, February 5, 1997 / Rules and Regulations 5345

31FCC News Release No. 31327, Jan. 13, 1993;

Economics and Statistics Administration, Bureau of

Census, U.S. Department of Commerce, 1992

Census of Transportation, Communications and

Utilities, Establishment and Firm Size, Series

UC92–S–1, Appendix A–9 (1995).

32FCC News Release No. 64958, Sept. 6, 1996.

33Census for communications establishments are

performed every five years ending with a ‘‘2’’ or

‘‘7’’. See Economics and Statistics Administration,

Bureau of Census, U.S. Department of Commerce,

supra note 31.

34The amount of $10 million was used to

estimate the number of small business

establishments because the relevant Census

categories stopped a $9,999,999 and began at

$10,000,000. No category for $10.5 million existed.

Thus, the number is as accurate as it is possible to

calculate with the available information.

35 13 CFR 121.201, SIC 4832.

36Economics and Statistics Administration,

Bureau of Census, U.S. Department of Commerce,

supra note 6, Appendix A–9.

37 Id.

38 Id.

39 Id.

40The Census Bureau counts radio stations

located at the same facility as one establishment.

Therefore, each co-located AM/FM combination

counts as one establishment.

41FCC News Release No. 31327, Jan. 13, 1993.

42FCC News Release, Broadcast Station Totals as

of December 31, 1996.

43We use the 77 percent figure of TV stations

operating at less than $10 million for 1992 and

apply it to the 1996 total of 1,550 TV stations to

arrive at 1,194 stations categorized as small

businesses.

44We use the 96% figure of radio station

establishments with less than $5 million revenue

from the Census data and apply it to the 12,088

individual station count to arrive at 11,605

individual stations as small businesses.

45Minority Commercial Broadcast Ownership in

the United States, U.S. Department of Commerce,

National Telecommunications and Information

Administration, The Minority Telecommunications

Development Program (‘‘MTDP’’) (April 1996).

MTDP considers minority ownership as ownership

of more than 50% of a broadcast corporation’s

stock, voting control in a broadcast partnership, or

ownership of a broadcasting property as an

individual proprietor. Id. The minority groups

included in this report are Black, Hispanic, Asian,

and Native American.

46See Comments of American Women in Radio

and Television, Inc. in MM Docket No 94–149 and

MM Docket No. 91–140, at 4 n.4 (filed May 17,

1995), citing Economic Censuses, Women-Owned

Business, WB87–1, U.S. Department of Commerce,

Bureau of the Census, August 1990 (based on 1987

Cenus). After the 1987 Census report, the Census

Bureau did not provide data by particular

communications services (four-digit Standard

Industrial Classification (SIC) Code), but rather by

the general two-digit SIC Code for communications

(#48). Consequently, since 1987, the U.S. Census

Bureau has not updated data on ownership of

broadcast facilities by women, nor does the FCC

collect such data. However, we sought comment on

whether the Annual Ownership Report Form 323

should be amended to include information on the

gender and race of broadcast license owners.

Policies and Rules Regarding Minority and Female

Ownership of Mass Media Facilities, Notice of

Proposed Rulemaking, 10 FCC Rcd 2788, 2797

(1995).

47FCC news release, Broadcast Station Totals as

of December 31, 1996.

applicable averaging period for

determining annual receipts, the annual

receipts in determining size status

include the receipts of both firms. 13

CFR 121.104(d)(1). The SBA defines

affiliation in 13 CFR 121.103. In this

context, the SBA’s definition of affiliate

is analogous to our attribution rules.

Generally, under the SBA’s definition,

concerns are affiliates of each other

when one concern controls or has the

power to control the other, or a third

party or parties controls or has the

power to control both. 13 CFR

121.103(a)(1). The SBA considers factors

such as ownership, management,

previous relationships with or ties to

another concern, and contractual

relationships, in determining whether

affiliation exists. 13 CFR 121.103(a)(2).

Instead of making an independent

determination of whether radio and

television stations were affiliated based

on SBA’s definitions, we relied on the

data bases available to us to provide us

with that information.

iii. Estimates Based on Census Data

33. The rules amended by this Report

and Order will apply to full service

television and radio stations, FM and

TV translator facilities, low power TV

stations (‘‘LPTV’’), television and radio

auxiliary and booster facilities,

international broadcasting stations,

television and radio network auxiliary

facilities, and video microwave

facilities.

34. There were 1,509 television

stations operating in the nation in

1992.31 That number has remained fairly

constant as indicated by the

approximately 1,550 operating

television broadcasting stations in the

nation as of August, 1996.32 For 1992 33

the number of television stations that

produced less than $10.0 million in

revenue was 1,155 establishments.34

35. The rule changes will also affect

radio stations. The SBA defines a radio

broadcasting station that has no more

than $5 million in annual receipts as a

small business.35 A radio broadcasting

station is an establishment primarily

engaged in broadcasting aural programs

by radio to the public.36 Included in this

industry are commercial religious,

educational, and other radio stations.37

Radio broadcasting stations which

primarily are engaged in radio

broadcasting and which produce radio

program materials are similarly

included.38 However, radio stations

which are separate establishments and

are primarily engaged in producing

radio program material are classified

under another SIC number.39 The 1992

Census indicates that 96 percent (5,861

of 6,127) of radio station establishments

produced less than $5 million in

revenue in 1992.40 Official Commission

records indicate that 11,334 individual

radio stations were operating in 1992.41

As of December 1996, official

Commission records indicate that

12,140 radio stations are currently

operating.42

36. Thus, the rule changes will affect

approximately 1,550 television stations,

approximately 1,194 of which are

considered small businesses.43

Additionally, the rule changes will

affect 12,140 radio stations,

approximately 11,605 of which are

small businesses.44 These estimates may

overstate the number of small entities

since the revenue figures on which they

are based do not include or aggregate

revenues from non-television or nonradio affiliated companies.

37. We recognize that the rule changes

may also affect minority and womenowned stations, some of which may be

small entities. In 1995, minorities

owned and conrolled 37 (3.0%) of 1,221

commercial television stations and 293

(2.9%) of the commercial radio stations

in the United States.45 According to the

U.S. Bureau of the Census, in 1987

women owned and controlled 27 (1.9%)

of 1,342 commercial and noncommercial television stations and 394

(3.8%) of 10,244 commercial and noncommercial radio stations in the United

States.46

38. The rule changes also affect radio

translator and booster stations,

television translator stations,

experimental radio stations and

television stations, and LPTV stations.

The Commission has not developed a

definition of small entities applicable to

radio or television booster and translator

stations, or experimental radio or

television stations. Therefore, the

applicable definition of a small entity is

the definition under the SBA rules

applicable to radio and television

stations. Under this definition, FM

booster and translator radio stations and

experimental radio stations (SIC Code

4832) that would qualify as small

businesses would be those radio

broadcasting facilities with maximum

revenues of $5 million. Similarly, under

this definition, television translator

stations, television experimental

stations, and LPTV stations (SIC Code

4833) would be those television

broadcasting facilities with maximum

revenues of $10.5 million.

39. There are currently 2,720 FM

translator and booster stations, 4,952 TV

translator stations, and 1,954 LPTV

stations which will be affected by the

new license term rules.47 Neither the

FCC nor the Department of Commerce

collects financial information on these
5346 Federal Register / Vol. 62, No. 24 / Wednesday, February 5, 1997 / Rules and Regulations

48The Commission’s definition of a small

broadcast station for purposes of applying its EEO

rule was adopted prior to the requirement of

approval by the Small Business Administration

pursuant to Section 3(a) of the Small Business Act,

15 U.S.C. 632(a), as amended by Section 222 of the

Small Business Credit and Business Opportunity

Enhancement Act of 1992, Public Law 102–366, sec.

222(b)(1), 106 Stat. 999 (1992), as further amended

by the Small Business Administration

Reauthorization and Amendments Act of 1994,

Public Law 103–403, sec. 301, 108 Stat. 4187

(1994). However, this definition was adopted after

public notice and an opportunity for comment. See

Report and Order in Docket No. 18244, 23 FCC 2d

430 (1970).

49See, e.g., 47 CFR 73.3612 (Requirement to file

annual employment reports on Form 395-B applies

to licensees with five or more full-time employees);

First Report and Order in Docket No. 21474 (In the

Matter of Amendment of Broadcast Equal

Employment Opportunity Rules and FCC Form

395), 70 FCC 2d 1466 (1979). The Commission is

currently considering how to decrease the

administrative burdens imposed by the EEO rule on

small stations while maintaining the effectiveness

of our broadcast EEO enforcement. Order and

Notice of Proposed Rule Making in MM Docket No.

96–16 (In the Matter of Streamlining Broadcast EEO

Rule and Policies, Vacating the EEO Forfeiture

Policy Statement and Amending Section 1.80 of the

Commission’s Rules to Include EEO Forfeiture

Guidelines), 11 FCC Rcd 5154 (1996). One option

under consideration is whether to define a small

station for purposes of affording such relief as one

with ten or fewer full-time employees. Id. at ¶21.

50We base this estimate on a compilation of 1994

Broadcast Station Annual Employment Reports

(FCC Form 395–B), performed by staff of the Equal

Opportunity Employment Branch, Mass Media

Bureau, FCC.

51We will, as required by the Telecom Act,

reserve the right to grant renewals in particular

cases for less than the maximum term if the public

interest would be served by such action.

52See ¶¶ 8–11, supra.

53See1 ¶¶ 9–12, supra.

broadcast facilities. We will assume for

present purposes, however, that most of

these broadcast facilities, including

LPTV stations, could be classified as

small businesses. As we indicated

earlier, 96% of radio stations and 78%

of TV stations are designated as small

businesses. Given this situation, these

stations would not likely have revenues

that exceed the SBA maximum to be

designated as small businesses.

40. We have no compilation of data

on how many experimental stations are

small entities. We will therefore assume

that all are small entities as defined by

the SBA. We believe, however, that this

assumption greatly overstates the

number of experimental stations that are

small businesses since some of the

licensees of experimental stations may

have aggregate revenues that are above

the revenue definition of small

businesses.

iv. Alternative Classification of Small

Stations

41. An alternative way to classify

small radio and television stations is by

the number of employees. The

Commission currently applies a

standard based on the number of

employees in administering its Equal

Employment Opportunity (‘‘EEO’’) rule

for broadcasting.48 Thus, radio or

television stations with fewer than five

full-time employees are exempted from

certain EEO reporting and

recordkeeping requirements.49 We

estimate that the total number of

broadcast stations with 4 or fewer

employees is 4,239.50

D. Projected Compliance Requirements

of the Rule

42. This Report and Order imposes

compliance with new license terms for

broadcast stations in accordance with

the amended rules set forth in the

Report and Order. Compliance will be

implemented as follows. For broadcast

renewal applications granted after the

effective date of a decision in this

proceeding, we will ordinarily grant the

renewed license for the maximum

proposed term of 8 years.51 For renewal

applications that have been filed as part

of the current renewal cycle (e.g., the

cycle beginning October 1, 1995 for

radio stations, and October 1, 1996 for

television stations) and that have been

granted only the maximum 7-year or 5-

year license term provided under our

current rules because they were

processed prior to a decision in this

proceeding, we will extend the already

renewed 7-year or 5-year license term

for such stations to the proposed 8-year

term. We consequently direct the staff to

modify the terms of such licenses to

afford these licensees the newly

authorized 8-year term and to ensure

synchronization of such licenses with

future renewal cycles.

43. The Report and Order imposes no

new reporting or recordkeeping

requirements. To the contrary,

broadcasters will have fewer filings to

make, since initial license terms will be

for longer periods and renewal filings

will be made less frequently. These

changes will result in greater economic

efficiency for broadcasters, especially

those classified as small entities, since

administrative burdens on broadcast

licensees will be reduced.

E. Significant Alternatives Considered

Minimizing the Economic Impact on

Small Entities and Consistent With the

Stated Objectives

44. The action taken does not impose

additional burdens on small entities. To

the contrary, it lessens burdens on both

small and large entities by lengthening

broadcast license terms to the maximum

extent authorized by statute.

45. MAP/CME opposes extending

broadcast license terms to eight years

because of concerns about the potential

effects of such an action on the public

interest obligations of broadcasters.

MAP/CME believes that longer license

terms, together with the elimination of

comparative renewals, focus on the

interests of broadcasters and will result

in no meaningful public review of

broadcasters’ performance. MAP/CME

also believes that the Commission

should extend broadcast license terms

to the maximum 8-year period only if it

adds quantitative programming

requirements as part of broadcasters’

public interest obligations.52

46. Like MAP/CME, we are concerned

about the public interest obligations of

licensees. We are also cognizant of

Congressional intent to reduce

regulatory burdens while at the same

time providing for meaningful review of

licensee performance. In this Report and

Order we have addressed these public

interest and regulatory concerns. On

balance, we find that the 8-year term

would serve the public interest.

Accordingly, we amend our rules to

provide that broadcast licenses

ordinarily have the maximum 8-year

term authorized under the Telecom Act.

As stated in the NPRM, we believe this

change in broadcast license terms is

consistent with the public interest since

licensees will continue to be subject to

scrutiny by both the public and the

Commission. In keeping with this

concern, we reiterate that Section 203 of

the Telecom Act, as well as our revised

rules, explicitly reserve the

Commission’s authority to grant

individual licenses for less than the

statutory maximum if the public

interest, convenience, and necessity

would be served by such action.53

47. Pursuant to the RFA, 5 U.S.C.

603(c), we have considered whether

there is a significant economic impact

on a substantial number of small

entities. We conclude that there is no

adverse economic impact on such

entities. To the contrary, extending

broadcast license terms would benefit

small business entities (e.g., small radio

stations, auxiliary stations and LPTV

stations), by reducing the administrative

burdens on such entities, thereby

allowing them to operate more

efficiently in the competitive

marketplace.

F. Report to Congress

48. The Commission shall send a copy

of this Final Regulatory Flexibility

Analysis along with this Report and

Order in a report to Congress pursuant

to the Small Business Regulatory

Enforcement Fairness Act of 1996,
Federal Register / Vol. 62, No. 24 / Wednesday, February 5, 1997 / Rules and Regulations 5347

codified at 5 U.S.C. 801(a)(1)(A). This

FRFA is also published in this Federal

Register summary.

Ordering Clauses

49. Accordingly, it is ordered that,

pursuant to the authority contained in

Sections 154, 303, and 307 of the

Communications Act of 1934, as

amended, 47 U.S.C. 154, 303, and 307,

Sections 73.733, 73.1020, and 74.15 of

the Commission’s Rules, 47 CFR 73.733,

73.1020, and 74.15, are amended as set

forth in the Rule changes section of this

Federal Register summary.

50. It is further ordered that the

Commission staff take appropriate

administrative actions to extend

broadcast licenses already granted or

renewed as part of the current renewal

cycle (i.e., the cycle beginning October

1, 1995 for radio stations and October 1,

1996 for television stations), for the

previously allowable maximum terms,

to the new maximum 8-year term.

51. It is further ordered that, pursuant

to the Contract with America

Advancement Act of 1996, the

amendment set forth in the attachment

to this summary shall be effective March

7, 1997.

52. It is further ordered that the

Secretary of the Commission shall send

this Report and Order to the Small

Business Administration for review.

53. It is further ordered that this

proceeding is terminated.

List of Subjects

47 CFR Part 73

Radio broadcasting, Radio, Television

broadcasting, Television.

47 CFR Part 74

Radio, Television.

Federal Communications Commission.

William F. Caton,

Acting Secretary.

Rule Changes

Parts 73 and 74 of Title 47 of the Code

of Federal Regulations are amended as

follows:

PART 73—RADIO BROADCAST

SERVICES

1. The authority citation for Part 73 is

revised to read as follows:

Authority: 47 U.S.C. 154, 303, and 307.

2. Section 73.733 is revised to read as

follows:

§ 73.733 Normal license period.

All international broadcast station

licenses will be issued so as to expire

at the hour of 3 a.m. local time and will

be issued for a normal period of 8 years

expiring November 1.

3. Section 73.1020 is amended by

revising the introductory text of

paragraph (a) to read as follows:

§ 73.1020 Station license period.

(a) Initial licenses for broadcast

stations will ordinarily be issued for a

period running until the date specified

in this section for the State or Territory

in which the station is located. If issued

after such date, it will run to the next

renewal date determined in accordance

with this section. Both radio and TV

broadcasting stations will ordinarily be

renewed for 8 years. However, if the

FCC finds that the public interest,

convenience and necessity will be

served thereby, it may issue either an

initial license or a renewal thereof for a

lesser term. The time of expiration of

normally issued initial and renewal

licenses will be 3 a.m., local time, on

the following dates and thereafter at 8-

year intervals for radio and TV

broadcast stations located in:

* * * * *

PART 74—EXPERIMENTAL RADIO,

AUXILIARY, SPECIAL BROADCAST

AND OTHER PROGRAM

DISTRIBUTIONAL SERVICES

1. The authority citation for Part 74 is

revised to read as follows:

Authority: 47 U.S.C. 154, 303, 307, and

554.

2. Section 74.15 is amended by

revising the introductory text of

paragraph (d) and paragraph (f) to read

as follows:

§ 74.15 Station license period.

* * * * *

(d) Initial licenses for low power TV,

TV translator, and FM translator stations

will ordinarily be issued for a period

running until the date specified in

§ 73.1020 of this chapter for full service

stations operating in their State or

Territory, or if issued after such date, to

the next renewal date determined in

accordance with § 73.1020 of this

chapter. Lower power TV and TV

translator station and FM translator

station licenses will ordinarily be

renewed for 8 years. However, if the

FCC finds that the public interest,

convenience or necessity will be served,

it may issue either an initial license or

a renewal thereof for a lesser term. The

FCC may also issue a license renewal for

a shorter term if requested by the

applicant. The time of expiration of all

licenses will be 3 a.m. local time, on the

following dates, and thereafter to the

schedule for full service stations in their

states as reflected in § 73.1020 of this

chapter:

* * * * *

(f) Licenses held by broadcast

network-entities under Subpart F will

ordinarily be issued for a period of 8

years running concurrently with the

normal licensing period for broadcast

stations located in the same area of

operation. An application for renewal of

license (FCC Form 313–R) shall be filed

not later than the first day of the fourth

full calendar month prior to the

expiration date of the license sought to

be renewed. If the prescribed deadline

falls on a nonbusiness day, the cutoff

shall be the close of business of the first

full business day thereafter.

* * * * *

[FR Doc. 97–2755 Filed 2–4–97; 8:45 am]

BILLING CODE 6712–01–P

ENVIRONMENTAL PROTECTION

AGENCY

48 CFR Part 1552

[FRL–5684–1]

Acquisition Regulation: Limitation of

Future Contracting

AGENCY: Environmental Protection

Agency.

ACTION: Final rule.

SUMMARY: The Environmental Protection

Agency (EPA) is revising its acquisition

regulation (48 CFR Chapter 15) to clarify

that the existing coverage regarding

ineligibility of Headquarters policy

support contractors to enter into EPA

response action contracts, unless

otherwise authorized by the contracting

officer, also renders EPA response

action contractors ineligible for award of

Headquarters policy support contracts,

unless otherwise authorized by the

contracting officer.

EFFECTIVE DATE: March 7, 1997.

FOR FURTHER INFORMATION CONTACT:

Louise Senzel, U.S. Environmental

Protection Agency, Office of Acquisition

Management (3802F), 401 M Street, SW,

Washington, D.C. 20460. Telephone:

(202) 260–6204.

SUPPLEMENTARY INFORMATION:

A. Background

The proposed rule was published in

the Federal Register (61 FR 57623) on

November 7, 1996, providing for a 60-

day comment period.

Interested persons have been afforded

an opportunity to participate in the

making of this rule. No comments were

received.