[Federal Register Volume 62, Number 24 (Wednesday, February 5, 1997)]
[Rules and Regulations]
[Pages 5339-5347]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-2755]


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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.

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SUMMARY: We issue this Report and Order (``R&O'') to implement Section 
203 of the Telecommunications Act of 1996 (``Telecom Act'') (Broadcast

[[Page 5340]]

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'').<SUP>1 Section 203 of 
the Telecom Act modifies the previous statutory provisions regarding 
license terms for broadcast stations in two principal ways.<SUP>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.
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    \1\ Public Law 104-104, 110 Stat. 56 (1996).
    \2\ The 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).
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    2. On April 12, 1996, we issued a Notice of Proposed Rule Making 
(``NPRM'') <SUP>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.
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    \3\ Notice of Proposed Rule Making in MM Docket No. 96-90, FCC 
96-169, (released April 12, 1996), 61 FR 17864 (April 23, 1996).
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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, Sec. 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.<SUP>4
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    \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 Sec. 74.15(a). Under 
Sec. 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 Sec. 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 Sec. 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.
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    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:

[[Page 5341]]

``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.<SUP>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.
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    \5\ NPRM at para. 6.
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    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.'' <SUP>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.<SUP>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.'' <SUP>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.<SUP>9
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    \6\ S. Conf. Rep. 104-230, 104th Cong. 2d Sess. 164 (1996).
    \7\ See 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.
    \9\ The 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.
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    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.<SUP>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.<SUP>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.<SUP>12
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    \10\ MAP/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).
    \11\ This 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 para. 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.
    \12\ See also infra paragraph 10.
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    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.<SUP>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.<SUP>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

[[Page 5342]]

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.
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    \13\ MAP/CME Comments at 3-5.
    \14\ MAP/CME Reply Comments at 4-5.
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    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.<SUP>15 As noted 
above, see paragraph 8, we believe that MAP/CME's proposal is beyond 
the scope of this proceeding.
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    \15\ MAP/CME Comments at 2-4; MAP/CME Reply Comments at 2.
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    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 full-service 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.<SUP>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.<SUP>17
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    \16\ See Report and Order in MM Docket No. 92-168, 9 FCC Rcd 
6504 (1994).
    \17\ See NBC Comments at 3.
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    14. We will also continue our practice, set forth in Sec. 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 Sec. 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 Sec. 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.<SUP>18
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    \18\ ABC/Capital Cities Comments at 4.
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    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.<SUP>19
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    \19\ Network 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 full-service 
broadcast stations for a particular state.
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    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 
Secs. 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

[[Page 5343]]

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.<SUP>20
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    \20\ The 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.
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    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.<SUP>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.<SUP>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.<SUP>23
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    \21\ NAB Comments at 3; NBC Comments at 3-4; Capital Cities/ABC 
Reply Comments at 2; ALTV Reply Comments at 5-6.
    \22\ NAB Comments at 2-3.
    \23\ NBC Comments at 3-4.
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    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.<SUP>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.<SUP>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.<SUP>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.
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    \24\ We 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.
    \25\ See Report and Order in CC Docket No. 83-371, 53 R.R. 2d 
1514 (1983).
    \26\ See, 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).
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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'').<SUP>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'').<SUP>28
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    \27\ Notice of Proposed Rule Making in MM Docket No. 96-90 
(Released April 12, 1996).
    \28\ Subtitle II of CWAAA is The Small Business Regulatory 
Enforcement Fairness Act of 1996 (SBREFA), codified at 5 U.S.C. 601 
et seq.
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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

[[Page 5344]]

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. <SUP>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.
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    \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.
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    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.<SUP>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.
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    \30\ We 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.
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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

[[Page 5345]]

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.<SUP>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.<SUP>32 For 1992 <SUP>33 the number of 
television stations that produced less than $10.0 million in revenue 
was 1,155 establishments.<SUP>34
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    \31\ FCC 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).
    \32\ FCC News Release No. 64958, Sept. 6, 1996.
    \33\ Census 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.
    \34\ The 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.
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    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.<SUP>35 A radio broadcasting 
station is an establishment primarily engaged in broadcasting aural 
programs by radio to the public.<SUP>36 Included in this industry are 
commercial religious, educational, and other radio stations.<SUP>37 
Radio broadcasting stations which primarily are engaged in radio 
broadcasting and which produce radio program materials are similarly 
included.<SUP>38 However, radio stations which are separate 
establishments and are primarily engaged in producing radio program 
material are classified under another SIC number.<SUP>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.<SUP>40 
Official Commission records indicate that 11,334 individual radio 
stations were operating in 1992.<SUP>41 As of December 1996, official 
Commission records indicate that 12,140 radio stations are currently 
operating.<SUP>42
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    \35\ 13 CFR 121.201, SIC 4832.
    \36\ Economics and Statistics Administration, Bureau of Census, 
U.S. Department of Commerce, supra note 6, Appendix A-9.
    \37\ Id.
    \38\ Id.
    \39\ Id.
    \40\ The Census Bureau counts radio stations located at the same 
facility as one establishment. Therefore, each co-located AM/FM 
combination counts as one establishment.
    \41\ FCC News Release No. 31327, Jan. 13, 1993.
    \42\ FCC News Release, Broadcast Station Totals as of December 
31, 1996.
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    36. Thus, the rule changes will affect approximately 1,550 
television stations, approximately 1,194 of which are considered small 
businesses.<SUP>43 Additionally, the rule changes will affect 12,140 
radio stations, approximately 11,605 of which are small 
businesses.<SUP>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 non-radio 
affiliated companies.
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    \43\ We 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.
    \44\ We 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.
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    37. We recognize that the rule changes may also affect minority and 
women-owned 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.<SUP>45 According to the U.S. Bureau of the Census, in 1987 
women owned and controlled 27 (1.9%) of 1,342 commercial and non-
commercial television stations and 394 (3.8%) of 10,244 commercial and 
non-commercial radio stations in the United States.<SUP>46
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    \45\ Minority 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.
    \46\ See 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).
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    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.<SUP>47 Neither the FCC nor the 
Department of Commerce collects financial information on these

[[Page 5346]]

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.
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    \47\ FCC news release, Broadcast Station Totals as of December 
31, 1996.
---------------------------------------------------------------------------

    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.<SUP>49 We estimate that the total number of broadcast 
stations with 4 or fewer employees is 4,239.<SUP>50
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    \48\ The 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).
    \49\ See, 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 para.21.
    \50\ We 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.
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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.<SUP>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.
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    \51\ We 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.
---------------------------------------------------------------------------

    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.<SUP>52
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    \52\ See Paras. 8-11, supra.
---------------------------------------------------------------------------

    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.<SUP>53
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    \53\ See1 Paras. 9-12, supra.
---------------------------------------------------------------------------

    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,

[[Page 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:


Sec. 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:


Sec. 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:


Sec. 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 Sec. 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 
Sec. 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 Sec. 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