[Federal Register Volume 66, Number 84 (Tuesday, May 1, 2001)]
[Rules and Regulations]
[Pages 21681-21691]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-10706]


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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Part 73

[MM Docket No. 00-10; FCC 01-123]
RIN 3060-AH39


Establishment of a Class A TV Service

AGENCY: Federal Communications Commission.

ACTION: Final rule.

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SUMMARY: This document implements the Community Broadcasters Protection 
Act of 1999, which directs the FCC to establish a Class A television 
service to provide a measure of primary status to certain low-power 
television stations. This document addresses a wide range of issues 
related to the implementation of the statute, including the protected 
service area of Class A stations, Class A interference protection 
requirements vis a vis other TV stations, eligibility criteria for 
Class A status, common ownership restrictions applicable to Class A 
stations, the treatment of modification applications filed by Class A 
licensees, and general operating requirements.

DATES: Effective May 31, 2001, except for 47 CFR 73.1545(e), which 
contains information collection requirements that have not been 
approved by OMB. The Federal Communications Commission will publish a 
document in the Federal Register announcing the effective date.

FOR FURTHER INFORMATION CONTACT: Debra Sabourin, Policy and Rules 
Division, Mass Media Bureau, (202) 418-2130, or Keith Larson, Office of 
the Bureau Chief, Mass Media Bureau, (202) 418-2600.

SUPPLEMENTARY INFORMATION: This is a summary of the Commission's 
Memorandum Opinion and Order on Reconsideration (``MO&O''), FCC 01-123, 
adopted April 5, 2001; released April 13, 2001. The full text of the

[[Page 21682]]

Commission's MO&O is available for inspection and copying during normal 
business hours in the FCC Dockets Branch (Room TW-A306), 445 12 St., 
SW., Washington, DC. The complete text of this MO&O may also be 
purchased from the Commission's copy contractor, International 
Transcription Services, (202) 857-3800, 1231 20th St., NW., Washington, 
DC 20036.

Paperwork Reduction Act

    This document contains new or modified information collection 
requirements. Implementation of these new or modified reporting and 
recordkeeping requirements will be subject to approval by the Office of 
Management and Budget.

Synopsis of Memorandum Opinion and Order

I. Introduction

    1. April 2000 we released a Report and Order (``R&O''), 65 FR 
29985, May 10, 2000, establishing a Class A television service. Our 
action implemented the Community Broadcasters Protection Act of 1999 
(CBPA), which was signed into law November 29, 1999. Community 
Broadcasters Protection Act of 1999, Public Law 106-113, 113 Stat. 
Appendix I at pp. 1501A-594--1501A-598 (1999), codified at 47 U.S.C. 
336 (f) (CBPA). Pursuant to the CBPA and our implementing rules, 
certain qualifying low-power television (LPTV) stations will be 
accorded Class A status. Class A licensees will have ``primary'' status 
as television broadcasters, thereby gaining a measure of interference 
protection from full-service television stations, even as those 
stations convert to a digital format. The CBPA and our R&O will 
facilitate the acquisition of capital needed by LPTV stations to allow 
them to continue to provide free, over-the-air programming, 
particularly locally-produced programming, to their communities. In 
this MO&O, we dispose of petitions for reconsideration of the R&O, make 
changes to some of our rules, and provide clarification of other rules.

II. Background

    2. From its creation by the Commission in 1982, the low power 
television service has been a secondary spectrum priority service whose 
members may not cause objectionable interference to existing full-
service stations, and * * * must yield to facilities increases of 
existing full-service stations or to new full-service stations where 
interference occurs. Currently, there are approximately 2,300 licensed 
LPTV stations in approximately 1,000 communities, operating in all 50 
states. These stations serve both rural and urban audiences. Because 
they operate at reduced power levels, LPTV stations serve a much 
smaller geographic region than full-service stations and can fit into 
areas where a higher power station cannot be accommodated in the Table 
of Allotments. In many cases, LPTV stations may be the only television 
station in an area providing local news, weather, and public affairs 
programming. Even in some well-served markets, LPTV stations may 
provide the only local service to residents of discrete geographical 
communities within those markets. Many LPTV stations air ``niche'' 
programming, often locally produced, to residents of specific ethnic, 
racial, and interest communities within the larger area, including 
programming in foreign languages.
    3. In the CBPA, Congress found that the future of low-power 
television is uncertain. Because LPTV stations had secondary spectrum 
status, they could be displaced by full-service TV stations that sought 
to expand their own service area, or by new full-service stations that 
entered the same market. The statute found that this regulatory status 
affects the ability of LPTV stations to raise necessary capital. In 
addition, Congress recognized that the conversion to digital television 
further complicates the uncertain future of LPTV stations. In assigning 
DTV channels, the Commission maintained the secondary status of LPTV 
stations and TV translators and, in order to provide all full-service 
stations with a second channel, was compelled to establish DTV 
allotments that will displace a number of LPTV stations. Although the 
Commission has taken a number of steps to mitigate the impact of the 
DTV transition on stations in the LPTV service, that transition 
nonetheless would have significant adverse effects on many stations, 
particularly LPTV stations operating in urban areas where there are 
few, if any, available replacement channels for displaced stations.
    4. Congress sought in the CBPA to address some of these issues by 
providing certain low power television stations--to be known as Class A 
stations--``primary'' spectrum use status. Congress also recognized, 
however, that, because, of the emerging DTV service, not all LPTV 
stations could be guaranteed a certain future. Congress recognized the 
importance and engineering complexity of the Commission's plan to 
convert full-service stations to digital format, and protected the 
ability of these stations to provide both digital and analog service 
during the transition.
    5. Congress also recognized, however, that, because of the emerging 
DTV service, not all LPTV stations could be guaranteed a certain 
future. Congress recognized the importance and engineering complexity 
of the FCC's plan to convert full-service stations to digital format, 
and protected the ability of these stations to provide both digital and 
analog service during the transition.

III. Discussion

A. Application and Certification for License
1. Statutory Timeframes
    6. Section 336(f)(1)(B) of the CBPA states: ``* * * Within 60 days 
after such date of enactment, licensees intending to seek class A 
designation shall submit to the Commission a certification of 
eligibility based on the qualification requirements of this subsection. 
* * * section 336(f)(1)(C) provides that, consistent with the 
requirements set forth in the CBPA, a licensee ``may'' submit an 
application for Class A designation within 30 days after final 
regulations are adopted implementing the CBPA. 47 U.S.C. 336(f)(1)(B), 
(C).
    7. The 60-day certification period was clearly specified by 
Congress in 47 U.S.C. 336(f)(1)(B) of the CBPA. The statute states that 
licensees intending to seek Class A designation ``shall'' submit a 
certification of eligibility within 60 days after the date of enactment 
of the Act. The CBPA was signed into law on November 29, 1999; thus, 
the time for filing a certificate of eligibility ended 60 days later, 
on January 28, 2000. To comply with the requirements of the statute, 
parties must have made the requisite submission within the time period 
specified. Section 47 U.S.C.
336(f)(1)(C) states that applicants ``may'' file license applications 
within 30 days from the adoption of final implementing rules. Section 
336(f)(1)(B), in contrast, states that licensees intending to seek 
Class A designation ``shall'' file a certification of eligibility 
within 60 days after enactment. Thus, even though no licensee was 
required to file a certificate of eligibility, any licensee that wished 
to do so was required to file within 60 days after enactment. The use 
of the word ``may'' in relation to applications indicates that the 30 
day filing period is permissive only, and not mandatory. Thus, 
applicants were not required to file within 30 days following adoption 
of final rules, although they were permitted to do so. Allowing a 
longer filing period was appropriate to give LPTV licensees adequate 
time to

[[Page 21683]]

prepare and file their Class A applications.
2. Ongoing Eligibility
    8. The intent of Congress in enacting the CBPA was to establish the 
rights of a very specific, already-existing group of LPTV stations. The 
statute itself states its intent to apply to a small number of 
stations: ``Since the creation of low-power television licensees by the 
Federal Communications Commission, a small number of license holders 
have operated their stations in a manner beneficial to the public good 
providing broadcasting to their communities that would not otherwise be 
available.'' The statute specifically states that an eligible low-power 
station must have met certain requirements ``during the 90 days 
preceding the date of the enactment of the Community Broadcasters 
Protection Act of 1999.'' 47 U.S.C. 336(f)(2)(A)(i). During that 90-day 
period, a qualifying station was to have ``broadcast a minimum of 18 
hours per day and an average of at least 3 hours weekly of local 
programming * * *'' and been ``in compliance with the Commission's 
requirements applicable to low-power television stations * * *'' 47 
U.S.C. 336(f)(2)(A)(i)(III). To comply with the requirements of the 
statute, parties must make the requisite showing for the time period 
specified.
B. Qualifying Low-Power Television Stations
1. Locally-Produced Programming
    9. Section 336(f)(2)(A) of the CBPA requires that, during the 90 
days preceding the date of enactment of the CBPA, LPTV stations must 
have broadcast an average of at least 3 hours per week of programming 
produced within the ``market area'' served by the station. In the R&O, 
we determined that the predicted Grade B contour was the appropriate 
measure for determining the provision of locally oriented programming 
for the communities served by LPTV stations. We clarify the ``local 
programming'' requirement. For a Class A station's programming to 
qualify as ``local programming'' under the CBPA, the programming must 
be produced within the same ``market area'' in which it is broadcast. 
For a single Class A station, ``locally produced programming'' is 
programming produced within the predicted Grade B contour of the 
station broadcasting the program or produced at the station's main 
studio. With respect to a group of commonly controlled stations, Class 
A stations whose predicted Grade B contours are physically contiguous 
to each other may consider the programming produced within any of these 
contours as ``local programming.'' If a Class A station is one of a 
group of commonly controlled Class A stations, but its predicted Grade 
B contour is not physically contiguous to that of another Class A 
station in the commonly-owned group, it may not consider the 
programming produced in any of those distant stations' contours ``local 
programming.''
2. Operating Requirements
    10. To qualify for Class A status, the CBPA provides that, during 
the 90 days preceding enactment of the statute, a station must have 
been in compliance with the Commission's requirements for LPTV 
stations. 47 U.S.C.
336(f)(2)(A)(i)(III). In addition, beginning on the date of its 
application for a Class A license and thereafter, a station must be 
``in compliance with the Commission's operating rules for full-power 
stations.'' 47 U.S.C. 336(f)(2)(A)(ii). We intend to apply to Class A 
licensees all part 73 rules, except for those which are inconsistent 
with the manner in which LPTV stations are authorized or the lower 
power at which these stations operate. We will apply the part 73 
regulations to Class A applicants or licensees, except for those that 
cannot apply for technical or other reasons, because this course of 
action is most consistent with the language in the CBPA.
    11. Main Studio Requirements. The Commission requires stations 
licensed under part 73 to maintain a ``meaningful management and staff 
presence'' at the station's main studio in order to serve the needs and 
interests of the residents of the station's community of license. The 
Commission has defined a minimally acceptable ``meaningful presence'' 
as full-time managerial and full-time staff personnel. It stated that 
there must be ``management and staff presence'' on a full-time basis 
during normal business hours to be considered ``meaningful.'' It 
further explained that the standard does not necessarily require two 
people at the main studio; rather, management and staff presence are 
required on a full-time basis, which may consist of more than two 
people working on part-time bases. Jones Eastern of the Outer Banks, 
Inc., 6 FCC Rcd 3615 (1991), clarified, 7 FCC Rcd 6800 (1992), 10 FCC 
Rcd 3759 (1995).
    12. While we recognize that LPTV stations face financial 
constraints due to their generally smaller coverage areas, we do not 
believe it is appropriate to exempt Class A stations from the same 
staffing requirements we impose on full service stations under part 73. 
The CBPA defines a ``qualifying'' LPTV station as one that ``from and 
after the date of its application for a class A license, * * * is in 
compliance with the Commission's operating rules for full-power 
television stations.'' The Commission's main studio staffing 
requirements are intended to ensure that stations maintain a local 
responsive presence in the community. Exposure to daily community 
activities and other local media of communications helps stations 
identify community needs and interests, which is necessary to operate 
in today's competitive marketplace and to meet our community service 
requirements. To accomplish these objectives, stations must maintain, 
at a minimum, full-time managerial and full-time staff personnel. In 
light of the CBPA's intent that Class A stations comply with all of the 
requirements of full-power TV stations, we believe it is both 
reasonable and appropriate to require Class A stations to meet the same 
obligations with respect to maintaining a local community presence as 
their full service counterparts.
    13. We will, however, amend our main studio requirement. For a 
single Class A station, a station's main studio shall be located within 
the station's predicted Grade B contour. With respect to a group of 
commonly controlled stations, Class A stations whose predicted Grade B 
contours are physically contiguous to each other may locate their main 
studio within any of these contours. Thus, two or more commonly owned 
Class A stations having contiguous predicted Grade B contours may 
construct and maintain one main studio within their combined 
boundaries, provided that main studio functions as the main studio for 
all the stations. If a Class A station is one of a group of commonly 
controlled Class A stations, but its predicted Grade B contour is not 
physically contiguous to that of another Class A station in the 
commonly-owned group, its main studio shall be located within its own 
predicted Grade B contour. We will amend our rule accordingly, and note 
that our requirement applies only to newly created main studios.
    14. Power Limits. We will not raise the ERP limit for Class A 
stations beyond the current LPTV maximum power levels. These power 
levels are sufficient to preserve existing service, which is consistent 
with Congress' objective underlying the CBPA. Congress emphasized in 
the CBPA the importance of balancing the needs of LPTV licensees 
against the needs of full-service stations as they transition to a 
digital format. We do not wish to risk hindering the implementation of 
digital

[[Page 21684]]

television. We will retain the current LPTV maximum power level 
requirements for Class A stations.
    15. Ongoing Obligations. In the R&O, we adopted a rule requiring 
Class A television broadcast stations to broadcast a minimum of 
eighteen hours per day and an average of at least three hours per week 
of locally produced programming each quarter. The CBPA makes clear that 
Class A licensees must ``continue'' to meet the qualifying low-power 
station eligibility criteria, indicating an intent that the criteria to 
qualify for Class A status create ongoing obligations. Moreover, it 
would be inconsistent with the overall intent of the CBPA--to afford 
Class A status only to stations that provide a substantial amount of 
locally-originated programming--to relieve stations of that obligation 
once Class A status has been achieved. We thus affirm our previous 
conclusion that Class A licensees must continue to meet the minimum 
operating hours and locally-produced programming obligations. Of 
course, Class A licensees may apply to the Commission for a waiver of 
the rules.
    16. Fines and Penalties. We clarify that Class A licensees are 
subject to the regulations regarding fines and penalties applicable to 
full power stations. Although Class A licensees will not be subject to 
loss of license for failure to continue to comply with the eligibility 
requirements in 47 U.S.C.(f)(2)(A) of the CPBA, they are subject to 
loss of Class A status if they fail to meet these ongoing obligations.
    17. DTV Broadcast Requirements. We permit Class A television 
stations that convert to digital operation to offer telecommunications 
services of any nature, consistent with the public interest, 
convenience and necessity, on an ancillary or supplementary basis in 
the same manner as full power DTV stations. In this regard, digital 
Class A stations must broadcast a free over-the-air video program 
service at least comparable to NTSC technical quality under the digital 
transmission standard applicable to full service stations. Such 
services will be subject to the fees due under Sec. 73.624(g) and be 
subject to the same requirement that they not derogate the free over-
the-air video program stream required of digital broadcasters. Taking 
this action furthers the Commission's goal of encouraging the 
transition of television broadcasting from analog to digital operation. 
By enabling Class A stations to generate additional revenues from 
ancillary or supplementary services, we seek to encourage the early 
conversion of Class A stations from analog to digital operation. 
Sections 73.624(c) and 73.624(g) will, therefore, apply to Class A 
television stations converting to digital operations. Section 73.624(b) 
will apply only to the extent that such stations must also transmit at 
least one over-the-air video program signal at no direct charge to 
viewers of the digital Class A station.
3. Mandatory Carriage
    18. Both the language of the CBPA and the accompanying conference 
report are silent with respect to the issue of must carry rights for 
Class A stations. It is unlikely that Congress intended to grant Class 
A stations full must carry rights, equivalent to those of full-service 
stations, without addressing the issue directly. This conclusion with 
respect to Class A must carry rights is consistent with the view 
recently expressed by the Commission in its R&O implementing the 
Satellite Home Viewer Improvement Act of 1999. In that Order, the 
Commission concluded that Class A stations are low power stations for 
mandatory carriage purposes, and are therefore not entitled to 
mandatory satellite carriage. R&O, In the Matter of Implementation of 
the Satellite Home Viewer Improvement Act of 1999: Broadcast Signal 
Carriage Issues, Retransmission Consent Issues, CS Docket Nos. 00-96 
and 99-363, FCC 00-417 (released November 30, 2000).
    19. We believe that Congress intended that Class A stations have 
the same limited must carry rights as LPTV stations. Section 614(a) of 
the Communications Act, as amended, requires the carriage of local 
television broadcast stations and ``qualified'' low power television 
stations in certain limited circumstances. Section
614(h)(2) defines the term ``qualified low power station'' as any 
television broadcast station ``conforming to the rules established for 
Low Power Television Stations contained in part 74 of title 47, Code of 
Federal Regulations'' that complies with the other criteria established 
in that section. 47 U.S.C. 534(h)(2). Thus, to be eligible for must 
carry, Class A stations, like other low power television stations, must 
comply with the part 74 rules and the other eligibility criteria 
established by statute and our rules.
    20. Just as it is unreasonable to conclude that Congress intended 
to confer on Class A stations the same must carry rights as full-
service stations without addressing this issue directly in the CBPA, we 
also believe that it is unlikely that Congress intended to take away 
from LPTV stations their existing must carry rights if they elect to 
convert to Class A. The principal intent of the CBPA was to provide 
additional certainty to LPTV stations during the digital transition and 
to alleviate the limitations that ``secondary service'' imposed on the 
ability of these stations to attract capital and to continue to provide 
high quality broadcast programming. Given the severe impact loss of 
must carry rights would impose on Class A stations who enjoyed these 
rights as LPTV stations, we conclude it is unlikely that Congress 
intended to remove these rights without specific mention in the CBPA.
4. Alternative Eligibility Criteria
    21. Section 336(f)(2)(A) of the CBPA defines the eligibility 
criteria for Class A stations. Section 336(f)(2)(B) provides that a 
station may also qualify for Class A status if the Commission 
determines that the public interest, convenience, and necessity would 
be served by treating the station as a qualifying low-power television 
station for purposes of this section, or for other reasons determined 
by the Commission.
    22. Foreign language stations should have the same eligibility 
requirements as any other potential Class A station. We recognize that 
foreign language stations provide a valuable service in providing 
access to national news and entertainment that might not otherwise 
exist for non-English speaking communities. In enacting the CBPA, 
however, Congress intended to preserve the service of a small class of 
existing LPTV stations that were providing a specified level of local 
programming to their communities. To fulfill the intent of the statute, 
foreign language stations, like other potential Class A stations, must 
meet the local programming criteria to qualify for Class A status. We 
will not establish different criteria for foreign language stations 
that do not meet the local programming criteria. We also decline to 
establish alternative criteria under the CBPA for foreign language 
stations based on the foreign language nature of their programming. An 
applicant's qualification for Class A status is not contingent upon 
whether it serves a particular audience, but upon whether it meets the 
eligibility criteria set out in the CBPA.
    23. We also allow deviation from the CBPA Class A eligibility 
criteria by waiver only where such deviations are insignificant or when 
compelling circumstances exist in individual cases. We disagree with 
CBA and other petitioners who contend that section 336(f)(2)(B) 
establishes a broad obligation independent of section
336(f)(2)(A) under which the Commission may determine that other groups 
of LPTV stations may qualify for Class A status for public interest or 
any

[[Page 21685]]

other reasons. Congress intended to protect a small group of LPTV 
stations that were providing local programming.
C. Class A Interference Protection Rights and Responsibilities
1. Protection of Pending NTSC TV Applications and Facilities
    24. The CBPA requires that the Commission preserve the service 
areas of LPTV stations pending the final resolution of a Class A 
application. We concluded in our R&O, that that provision requires 
protection from the date of filing of an acceptable certification of 
eligibility for Class A status. With respect to NTSC facilities, 
section 336(f)(7)(A) of the CBPA provides that the Commission may not 
grant a Class A license, nor approve a modification of license, unless 
the applicant shows that the proposed Class A station will not cause 
interference within the predicted Grade B contour (as of the date of 
enactment of the * * * [CBPA] * * * or as proposed in a change 
application filed on or before such date) of any television station 
transmitting in analog format. In our R&O, we interpreted this 
provision to require Class A stations to protect both existing analog 
stations and full-service applicants where the Commission has completed 
all processing short of grant necessary to provide a reasonably 
ascertainable Grade B contour. Specifically, we required Class A 
applicants to protect the predicted Grade B contour (as of November 29, 
1999, or as proposed in a change application filed on or before that 
date) of full-power analog stations licensed on or before November 29, 
1999. We also required Class A applicants to protect the Grade B 
contour of full-power analog facilities for which a construction permit 
was authorized on or before November 29, 1999. Finally, we required 
Class A applicants to protect the facilities proposed in any 
application for full-power analog facilities that was pending on 
November 29, 1999, for which the Commission had completed all 
processing short of grant as of that date, and for which the identity 
of the successful applicant was known. The applications in this latter 
category are post-auction applications, applications proposed for grant 
in pending settlements, and any singleton applications cut off from 
further filings. We did not require Class A applicants for initial 
Class A authorization to protect pending rule making petitions for new 
or modified NTSC channel allotments or full-service applications that 
were not accepted for filing by November 29, 1999, including most 
pending television freeze waiver applications.
    25. Our decision to protect the delineated categories of pending 
NTSC applications is not inconsistent with either the language of the 
CBPA or the underlying intent of Congress. Section 336(f)(7)(A)(i) of 
the statute requires Class A applicants and licensees to protect the 
predicted Grade B contour (as of * * * [November 29, 1999], or as 
proposed in a change application filed on or before such date) of 
analog facilities. Thus, Class A stations must protect the predicted 
Grade B contour of analog stations licensed or granted a construction 
permit as of November 29, 1999, as well as of facilities proposed in 
certain pending analog applications. As we noted in the R&O, the phrase 
``predicted Grade B contour'' is singular. The assertion that the 
phrase ``transmitting in analog format'' is ambiguous is not relevant 
to our interpretation of the separate phrase ``predicted Grade B 
contour.'' This latter phrase, as modified by the parenthetical in 
section 336(f)(7)(A)(i), limits the facilities proposed in applications 
pending as of November 29, 1999 that must be protected by Class A 
stations to those for which there is a single, reasonably ascertainable 
predicted Grade B contour as of that date. These applications consist 
of post-auction applications, applications proposed for grant in 
pending settlements, and any singleton applications cut off from 
further filing. The applications in each of these categories have 
progressed through the cut-off stage and the identity of the successful 
applicant in each case has been determined. Class A applicants can 
identify a single predicted Grade B contour with respect to these 
applications for which protection must be afforded and are not required 
to show that they will not interfere with multiple, hypothetical 
contours that may not turn out to be actual contours, if the applicant 
in question does not ultimately receive the station license.
    26. This interpretation is consistent with both the language of 
section
336(f)(7)(A)(i) and with the intent of Congress as expressed in the 
overall statutory scheme. Throughout the CBPA, Congress attempted to 
balance the enhanced rights it conferred on Class A stations against 
those of full service stations in light of the limited spectrum 
available. Requiring Class A applicants to protect applications that 
have progressed through the cut-off stage strikes an appropriate 
balance between the rights of pending NTSC applicants and the interests 
of LPTV stations seeking primary status. Applicants that have 
prosecuted their applications through the cut-off stage and to the 
point that the identity of the successful applicant is known have in 
most cases invested substantial resources in filing and prosecuting 
their applications. Most of these applications have been pending for 
some time, and LPTV stations affected by the facilities proposed in 
these applications have long been on notice that they would ultimately 
be displaced or be required to reduce their facilities. Requiring Class 
A applicants to protect applications that had progressed through this 
stage by November 29, 1999 is both equitable and a reasonable reading 
of the CBPA.
    27. We estimate that there are still pending before the Commission 
applications that may account for approximately 180 potential new NTSC 
stations. The grant of this number of new full service stations would 
likely displace a significant number of LPTV stations, many of which 
would be unlikely to be able to successfully locate replacement 
spectrum within the core. In light of the primary intent of the CBPA to 
protect those presently operating LPTV stations that can qualify under 
the statute, we conclude that our interpretation of section 
336(f)(7)(A)(i) appropriately balances the rights of these stations 
against those of pending NTSC applicants.With respect to applications 
for which a settlement is pending as of the date of enactment of the 
CBPA, we clarify that where such a settlement includes a channel 
change, and the application for the channel change has not been 
accepted for filing with the Commission, we will treat that channel 
change application in the same way as any other pending NTSC 
application for purposes of determining priority vis a vis Class A. 
Thus, where a pending settlement depends upon a channel change which 
has not been accepted for filing by the Commission, and that new 
channel proposal conflicts with the protected facilities of a Class A-
certified LPTV station, the settlement will not be protected.
2. DTV Maximization and Allotment Adjustments
    28. The CBPA provides that a Class A application for license or 
license modification may not be granted where the proposal would 
interfere with DTV stations seeking to ``maximize power'' under the 
Commission's rules, for those stations that complied with the 
notification requirements of section
336(f)(1)(D) of the statute. Section
336(f)(1)(D) requires that, to be entitled to protection by Class A 
applicants, DTV stations were required to have filed an application for 
maximization or a

[[Page 21686]]

notice of intent to seek maximization by December 31, 1999, and have 
filed a bona fide application for maximization by May 1, 2000. 
Approximately 370 DTV maximization applications were filed in 
accordance with that statutory deadline. In the R&O, we interpreted the 
use of the term ``maximization'' in the statute to refer to power and/
or antenna height increases above the values given in the DTV Allotment 
Table, and to site changes that would extend the service area of DTV 
facilities beyond a station's NTSC replication facilities.
    29. The CBPA provided an exception to the provision for 
preservation of the service areas of Class A-certified LPTV stations. 
According to section 336 (f)(1)(D), if, thereafter, ``technical 
problems arise requiring an engineering solution to a full-power 
station's allotted parameters or channel assignment in the digital 
television Table of Allotments, the Commission shall make such 
modifications as necessary (i) to ensure replication of the full-power 
digital television applicant's service area * * * and (ii) to permit 
maximization of a full-power digital television applicant's service 
area * * *'' (if the applicant complied with the notification and 
application requirements established by that section).
    30. As we indicated in the R&O, the statutory language is somewhat 
ambiguous regarding the protection to be accorded by Class A applicants 
to DTV stations seeking to replicate or maximize power. Although 
section 336(f)(1)(D) appears to tie replication and maximization to 
resolution of technical problems, section 336(f)(7) appears to require 
all applicants for a Class A license or modification of license to 
demonstrate protection to stations seeking to replicate or maximize 
power, as long as the station seeking to maximize has complied with the 
notification and application requirements of section 336(f)(1)(D), 
without reference to any need to resolve technical problems on the part 
of the DTV station. Despite the reference in section 336(f)(1)(D) to 
technical problems, we concluded in the R&O, that it was most 
consistent with the statutory schemes for both Class A LPTV service and 
digital full-service broadcasting to require Class A stations to 
protect all DTV stations seeking to replicate or maximize facilities, 
as provided in section 336(f)(7)(A)(ii), regardless of the existence of 
``technical problems,'' provided stations seeking to maximize complied 
with the notification requirements of section 336(f)(1)(D) of the 
statute. We interpreted section 336(f)(1)(D) as providing DTV stations 
with the flexibility to make adjustments to the facilities proposed in 
these maximization applications, including channel changes, where 
necessary to resolve technical problems that prevented implementation 
of the facilities proposed therein. Consistent with this statutory 
interpretation, we also provided that the maximized service areas 
resulting from timely filed maximization application proposals could be 
carried over to a DTV station's final in-core DTV channels, such as a 
station's in-core analog channel, to the extent the in-core channel 
facilities for maintaining the maximized service area would provide the 
required protection to other DTV stations. Such maximized facilities on 
post-transition channels will have priority over conflicting Class A 
facilities.
A. Methods of Interference Protection to Class A Facilities
1. Analog Full-Service TV Protection to Analog Class A--Frequency 
Offset
    31. We are persuaded to modify our decisions in the R&O, regarding 
use of carrier offsets by Class A station entities. Requiring use of 
carrier offsets will provide for greater spectrum efficiency by making 
room for more new LPTV or Class A stations and/or by allowing more 
existing stations to increase facilities. First, we will require that, 
within nine months of the date of release of this MO&O, all Class A 
station licensees operate with a carrier offset. Within that time 
period, we will also require that Class A construction permits and 
pending applications for such permits be modified or amended to specify 
a carrier offset. To do so, station licensees, permittees, and 
applicants shall specify the carrier offset in a letter to the 
Commission staff, referencing their license, permit, or pending 
application. Class A stations operating with an offset must meet the +/
- 1 kilohertz frequency tolerance requirements of Sec. 73.1545(c) of 
the Commission's Rules. We understand that most stations not currently 
operating with an offset could readily do so at modest cost by 
modifying their existing transmitters. A small number of stations may 
have to obtain new transmitters equipped for offset operation. With 
regard to offset conversion, we will not impose the transmitter 
equipment performance requirements of Sec. 73.1590 of our rules. 
However, stations converting to offset or changing their offset will be 
required to measure the visual carrier frequency and the difference 
between the aural and visual carriers to determine compliance with the 
requirements of Sec. 73.1545(c). This data must be kept on file at the 
transmitter or remote control point, and be made available upon request 
to authorized Commission representatives.
    32. Second, we will require all Class A stations or Class A-
eligible LPTV stations seeking facilities increases to specify a 
carrier offset in their modification applications, regardless of 
whether the advantages of offset operation can be realized with respect 
to all neighboring co-channel stations. As noted above, such a 
requirement will improve spectrum efficiency generally for new as well 
as existing stations.
    33. Finally, until the time at which all Class A entities are 
required to specify use of a carrier offset, we may, on a case-by-case 
basis, direct Class A station licensees, permittees and Class A-
eligible LPTV applicants (affected stations) to operate their stations 
with a carrier offset at the request of a displaced Class A station, 
displaced Class A-eligible LPTV station, or applicant or allotment 
petitioner for a new NTSC television station (requesting stations). The 
requesting party must first attempt to negotiate a voluntary offset 
agreement with the affected Class A entity. Such agreements should be 
included with the applications of the requesting station and offset 
notification of the affected station. The Commission staff will process 
the related applications and offset notifications in a coordinated 
manner. In the event a voluntary agreement cannot be reached, the 
requesting station may file (or amend) its application, despite the 
interference conflict with the affected station. The application must 
set forth the requesting station's efforts to reach agreement with the 
affected station and request that the affected station be directed to 
specify a carrier offset. A copy of the application (or amendment to a 
pending application) must be sent to the affected station, which will 
be given 30 days to file comments. If the requesting station's 
application is otherwise acceptable (that is, except for the conflict 
with the affected station), the Commission staff may direct the 
affected station to file within 30 days a letter notification 
specifying a particular carrier offset. It will process the related 
applications and offset notifications in a coordinated manner.
    34. This Class A proceeding has not addressed carrier offset issues 
with regard to television translator and non-Class A LPTV stations. 
Therefore, the above provisions do not, as a matter of policy, apply to 
these stations. Many translators and LPTV stations do not operate with 
a frequency offset. Channel

[[Page 21687]]

displacement among LPTV and translator stations has been extensive. The 
difficulties faced by translator and LPTV licensees, including Class-A 
eligibles, in finding replacement channels could be lessened if 
translators and LPTV stations operated with carrier offsets. We 
strongly encourage such stations to enter into voluntary offset 
agreements, particularly where this would accommodate use of a 
replacement channel by a displaced station. On a case-by-case basis, we 
reserve the right to modify the license of a TV translator or non-Class 
A LPTV station subject to the provisions of the Communications Act of 
1934, as amended.
2. Alternative Means of Interference Protection
    35. In the R&O, we concurred with commenters who favor permitting 
Class A stations to enter into interference or relocation agreements 
with full-service, LPTV, TV translator and other Class A licensees, 
permittees or applicants. We required agreements to be submitted with 
the related applications for initial or modified broadcast facilities. 
We said we would approve of such agreements if we find them to be 
consistent with the public interest. We reaffirm our decision in the 
R&O. We will approve interference or relocation agreements between 
Class A applicants and applicants for full-service television stations, 
provided we find the agreements to be consistent with the public 
interest.
E. Methods of Interference Protection by Class A to Other Facilities
1. Grandfathering of LPTV Interference Waivers
    36. In the R&O, we adopted interference protection requirements for 
Class A applicants, as directed by the CBPA. These require protection 
to certain authorized and proposed NTSC TV, DTV, LPTV and TV translator 
and land mobile radio services. Applicants for Class A authorizations 
must certify in their applications that their proposed facilities 
comply with the applicable interference protection requirements in the 
Commission's Rules.
    37. As requested and to guide applicants for initial Class A 
authorizations, we provide the following clarification. Existing 
waivers of the LPTV station interference protection requirements may be 
used as a basis for certifying compliance with the Class A interference 
protection requirements provided: (1) Construction of the facilities 
for which Class A status is sought was authorized on the basis of a 
waiver of the interference standards with respect to a protected 
station; (2) all engineering parameters under that LPTV authorization 
remain unchanged; (3) all authorized engineering parameters of the 
protected station associated with the waiver remain unchanged; and (4) 
the LPTV licensee has no knowledge that its station is causing 
interference to the reception of the protected station within its 
protected service area; e.g., Grade B contour for NTSC TV stations. We 
also reiterate that any interference from existing LPTV facilities 
within the protected contour of later authorized or proposed LPTV or TV 
translator facilities is permitted by the LPTV rules and is also 
grandfathered.
2. Land Mobile Radio Service and TV Channel 16
    38. The CBPA, at section 336(f)(7)(C), provides that the Commission 
may not authorize a Class A station that will cause interference to 
certain land mobile radio uses of television channels. In the R&O, we 
stated that it is most consistent with the statutory scheme and the 
waiver granted for public safety land mobile use of Channel 16 in the 
New York City metropolitan area that LPTV station WEBR-LP and the New 
York police and public safety agencies continue to cooperate to ensure 
that neither party interferes with the other's transmission. Pursuant 
to our decision in the R&O, because the application reflected the 
parties' commitment to the agreement, the Mass Media Bureau granted the 
application on August 21, 2000 and did not impose a condition that 
WEBR-LP's authority to operate as a Class A station be subject to the 
agreement.
F. Remaining Issues
1. Issuance of DTV Licenses to Class A, TV Translator, and LPTV 
Stations
    39. In the R&O, we noted that Class A stations may convert their 
existing channel to digital broadcasting at any time. We also concluded 
that the plain reading of the CBPA, as well as its legislative history, 
does not require us to issue an additional license for DTV services to 
Class A or TV translator licensees, but does require us to accept DTV 
applications from licensees of Class A or TV translator stations that 
meet the interference protection requirements set forth in the statute. 
Recognizing that a number of outstanding issues regarding the 
transition to DTV must be resolved, we said we would defer matters 
regarding the issuance of additional DTV licenses for Class A stations 
to a future DTV rulemaking.
    40. We reaffirm our decision in the R&O. The statute requires that 
we shall accept a license application for such services that meet 
certain interference protection requirements. Nothing in the statute 
requires that we assign a second DTV channel to Class A stations. A 
Class A station may convert its existing channel to digital 
broadcasting at any time, or it may compete with other interested 
parties for additional channels for DTV.
    41. We must exercise restraint with respect to issuing additional 
DTV licenses in order to preserve spectrum to accommodate needs 
associated with the transition of full-service stations to digital 
service. For instance, in our DTV periodic review proceeding we 
expressed our belief that more out-of-core stations than initially 
anticipated must be accommodated with in-core channels and that this 
effort will be made more difficult because there are more stations 
occupying core channels than initially planned for. We therefore defer 
matters regarding the issuance of additional DTV licenses for Class A 
stations to a future rulemaking. Issues regarding the means of issuing 
such licenses will be considered in that proceeding.
2. Stations Operating Between 698 and 806 MHz
    42. In the R&O, we decided not to impose any time limit on the 
filing of a Class A application by LPTV licensees operating on channels 
outside the core channels 2-51. We said that the CBPA provides that, if 
a qualified applicant for a Class A license operating on an out-of-core 
channel locates an in-core channel, the Commission ``shall issue a 
Class A license simultaneously with the assignment of such channel,'' 
but does not impose a time limit on the filing of such applications. We 
required stations operating on these channels to have filed a 
certification of eligibility within the time frame established in the 
statute (i.e., by January 28, 2000), and granted these stations a 
presumption of displacement, permitting them to file displacement 
applications immediately if they can locate a replacement channel 
within the core spectrum.
    43. We also stated that, when a qualified LPTV station outside the 
core seeking Class A status locates an in-core channel, we will require 
the station to file a Class A application simultaneously with its 
application for modification of license to move to the in-core channel. 
We said we will provide interference protection to such stations on the 
in-core channel from the

[[Page 21688]]

date of grant of a construction permit for the in-core channel. Because 
the CBPA prohibits the award of Class A status to stations outside the 
core, we believed it would be inconsistent with the statute to provide 
interference protection on a channel outside the core. We stated that 
contour protection would commence with the award of a construction 
permit on the in-core channel, rather than a license to cover 
construction.
    44. We decline to reconsider our decision not to impose a six month 
time limit on LPTV licensees on out-of-core channels seeking Class A 
status. The CBPA provides that, if a qualified applicant for a Class A 
license operating on an out-of-core channel locates an in-core channel, 
the Commission ``shall issue a Class A license simultaneously with the 
assignment of such channel.'' The statute does not require that we 
impose a time limit on the filing of such applications, and we believe 
many LPTV stations outside the core will need additional time to locate 
an in-core channel. In most cases, it would be in the best interest of 
qualified LPTV stations operating outside the core to try to locate an 
in-core channel now, as the core spectrum is becoming increasingly 
crowded and it is likely to become increasingly difficult to locate an 
in-core channel in the future.
    45. We wish to clarify our policy with respect to those certified-
eligible LPTV stations that are licensed on a core channel, and have 
received or applied for a displacement construction permit on an out-
of-core channel. The authorized or proposed non-core facilities will 
not receive Class A protections. However, stations having a non-core 
construction permit or pending displacement application for such a 
permit as of the Class A filing deadline, and that have filed timely 
certifications of eligibility, will not be required to file a Class A 
application by that deadline, but rather at such later time as they 
file a displacement application for an available in-core channel. This 
will preserve Class A opportunities for a number of displaced LPTV 
stations.
3. Call Signs
    46. In the R&O, we allowed Class A stations to use standard 
television call signs with the suffix ``-CA'' to distinguish the 
stations from ``-LP'' stations. We said that, upon grant of its initial 
Class A application, the qualifying LPTV licensee can change its 
station's existing numerical or four-letter low power call sign to a 
four-letter call sign with the ``CA'' suffix.
    47. We reaffirm our decision. As we have stated elsewhere in this 
proceeding, Congress in the CBPA intended to create a distinct group of 
stations that are neither LPTV stations nor full power broadcast 
stations. Use of the ``-CA'' suffix appropriately distinguishes this 
unique group of stations from secondary LPTV stations that use the ``-
LP'' suffix and from primary full power stations that use the ``-TV'' 
suffix. We note further that use of the suffix is not required for 
purposes of station promotion, such as station letterhead.

IV. Conclusion

    48. In this MO&O, we generally reaffirm the decisions we reached in 
the R&O, although we make some changes and clarify certain aspects of 
our rules, as described previously. Pursuant to the CBPA and our 
implementing rules, certain qualifying LPTV stations will be accorded 
``primary'' status as television broadcasters. The actions we have 
taken today and in the R&O will facilitate the acquisition of capital 
needed by these stations to allow them to continue to provide free, 
over-the-air programming to their local communities. By improving the 
viability of these stations, our action today promotes our fundamental 
goals of ensuring diversity and localism in television broadcasting.

V. Administrative Matters

    49. Regulatory Flexibility Analysis. Pursuant to the Regulatory 
Flexibility Act of 1980, as amended, See 5 U.S.C. 601 et seq., the 
Commission's Supplemental Final Regulatory Flexibility Analysis has 
been completed.
    50. Paperwork Reduction Act Analysis. The actions taken in this 
MO&O have been analyzed with respect to the paperwork Reduction Act of 
1995, and found to impose new or modified reporting and recordkeeping 
requirements or burdens on the public. Implementation of these new or 
modified reporting and recordkeeping requirements will be subject to 
approval by the Office of Management and Budget (OMB) as prescribed by 
the Act.

VI. Supplemental Final Regulatory Flexibility Analysis

    51. As required by the Regulatory Flexibility Act (RFA), see 5 
U.S.C. 601 et seq., an Initial Regulatory Flexibility Analysis (IRFA) 
was incorporated in the Notice and a Final Regulatory Flexibility 
Analysis (FRFA) was incorporated in the R&O. The Commission sought 
written public comment on the proposals in the Notice, including 
comment on the IRFA. No comments were received in response to the IRFA 
or the FRFA. This present Supplemental Final Regulatory Flexibility 
Analysis (Supplemental FRFA) conforms to the RFA. See 5 U.S.C. 604.
Need for, and Objectives of, the Memorandum Opinion and Order on 
Reconsideration
    52. The Community Broadcasters Protection Act of 1999 (CBPA) 
directed the Commission, within 120 days after the date of enactment, 
to prescribe regulations establishing a Class A television license 
available to licensees of qualifying low-power television (LPTV) 
stations. The CBPA directs that Class A licensees be subject to the 
same license terms and renewal standards as full-power television 
licensees, and that Class A licensees be accorded primary status as a 
television broadcaster as long as the station continues to meet the 
requirements set forth in the statute for a qualifying low-power 
station. In addition to other matters, the CBPA sets out certain 
certification and application procedures for low-power television 
licensees seeking to obtain Class A status, prescribes the criteria 
low-power stations must meet to be eligible for a Class A license, and 
outlines the interference protection Class A applicants must provide to 
analog (or NTSC), digital (DTV), LPTV, and TV translator stations.
    53. The Commission adopted the R&O, to implement the CBPA. In that 
Order, we determined that the service areas of LPTV licensees would be 
preserved from the date the Commission receives a certification of 
eligibility for Class A status, as long as the certification is 
ultimately approved by the Commission. The R&O, interpreted the CBPA to 
require that Class A stations protect both existing analog stations and 
full power analog applicants that have completed all processing short 
of grant. Similarly, the R&O required Class A stations to protect the 
digital service areas of DTV facilities proposed in an application 
pending as of the CBPA enactment date (November 29, 1999) and that had 
completed all processing short of grant as of that date. The R&O, 
generally applied to Class A applicants and licensees all part 73 
regulations except those that cannot apply for technical or other 
reasons. The R&O also addressed a wide range of other issues related to 
the implementation of the CBPA, including the protected service area of 
Class A stations, Class A interference protection requirements vis-a-
vis other TV stations, common ownership restrictions applicable to 
Class A stations, and the treatment of modification applications filed 
by Class A licensees.

[[Page 21689]]

    54. In this MO&O, we do not change most of the determinations made 
in the R&O. We do, however, adopt the following changes. We modify our 
main studio location requirements with respect to LPTV stations in a 
commonly owned group. We also clarified our definition of ``local 
programming'' with respect to LPTV stations in a commonly owned group. 
We permit Class A television stations that convert to digital operation 
to offer ancillary or supplementary services in the same manner as full 
power DTV stations. We clarify that Class A stations have the same 
limited must carry rights as LPTV stations, but do not have the same 
must carry rights as full service television stations under part 73 of 
the Commission's rules. To foster efficient spectrum utilization, we 
modify our decision regarding the use of carrier frequency offsets by 
Class A stations, by establishing a deadline for the required use of 
offsets and requiring the use of such offsets to accommodate, where 
possible, certain Class A and full-service NTSC station proposals.
Summary of Significant Issues Raised by Public Comments
    55. No comments were received in response to the IRFA. Furthermore, 
no petitions or comments were received on the R&O, concerning the FRFA. 
Two petitioners, however, did file Petitions for Reconsideration 
raising concerns about the main studio staffing requirements. These 
petitioners advised that the Commission Class A staffing requirements 
were too costly. As a result of petitioners' comments, we clarified 
that the staffing standard does not necessarily require two full-time 
staff to be present at the main studio. Rather, management and staff 
presence are required on a full-time basis, which may consist of more 
than two people working on part-time bases. In addition, the Commission 
amended the main studio requirement so that commonly owned Class A 
stations having contiguous boundaries may share a single main studio. 
Further analysis of this issue may be found below in the section on 
minimizing significant impacts.
Description and Estimate of the Number of Small Entities To Which the 
Proposed Rules Apply
    56. The RFA directs agencies to provide a description of and, where 
feasible, an estimate of the number of small entities that may be 
affected by the rules. 5 U.S.C. 603(b)(3). The RFA generally defines 
the term ``small entity'' as having the same meaning as the terms 
``small business,'' ``small organization,'' and ``small governmental 
jurisdiction.'' 5 U.S.C. 601(6). In addition, the term ``small 
business'' has the same meaning as the term ``small business concern'' 
under the Small Business Act. 5 U.S.C. 601(3). 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). 15 
U.S.C. 632.
    57. Small TV Broadcast Stations. The SBA defines small television 
broadcasting stations as television broadcasting stations with $10.5 
million or less in annual receipts. 13 CFR 121.201 (SIC Code 4833). The 
MO&O modifies certain rules applicable to Class A television licenses, 
which are available to licensees of qualifying LPTV stations. According 
to the Commission staff review of the BIA Publications, Inc., Master 
Access Television Analyzer Database, virtually all LPTV broadcast 
stations have revenues of less than $10.5 million. Currently, there are 
approximately 2,200 licensed LPTV stations. Public Notice, ``Broadcast 
Station Totals as [of] September 30, 1999'' (released November 22, 
1999). The Commission notes, however, that under SBA's definition, 
revenues of affiliates that are not LPTV stations should be aggregated 
with the LPTV station revenues in determining whether a concern is 
small. The Commission's estimate may thus overstate the number of small 
entities since the revenue figure on which it is based does not include 
or aggregate revenues from non-LPTV affiliated companies.
Description of Projected Reporting, Recordkeeping, and Other Compliance 
Requirements
    58. We anticipate that the frequency offset requirement in the MO&O 
will result in changes to the reporting and recordkeeping requirements 
of Class A stations. When a Class A station begins operating with a 
frequency offset, it will be necessary for it to notify the Commission 
in writing.
Steps Taken to Minimize Significant Impact on Small Entities, and 
Significant Alternatives Considered.
    59. The RFA requires an agency to describe any significant 
alternatives that it has considered in reaching its proposed approach, 
which may include the following four alternatives (among others): (1) 
The establishment of differing compliance or reporting requirements or 
timetables that take into account the resources available to small 
entities; (2) the clarification, consolidation, or simplification of 
compliance or reporting requirements under the rule for small entities; 
(3) the use of performance, rather than design standards; and (4) an 
exemption from coverage of the rule, or any part thereof, for small 
entities. 5 U.S.C. 603(c)(1)-(4).
    60. The R&O, adopted a number of rules designed to help LPTV 
stations seeking to convert to Class A status and exempts Class A 
licensees from part 73 rules that clearly could not apply, either due 
to technical differences in the operation of low-power and full-power 
stations, or for other reasons. Although the R&O applied the main 
studio rule for the first time to LPTV stations who qualify as Class A 
stations, requiring them to locate their main studios within the 
station's Grade B contour, as determined pursuant to the Commission's 
rules, the R&O grandfathers the main studios at the site in use as of 
November 28, 1999. As discussed, several petitioners expressed concern 
about the main studio requirement and its effect on small entities. 
Petitioners argued that the cost of the main studio staffing 
requirement, as adopted in the R&O, was financially prohibitive for 
small businesses and would result in the demise of Class A stations. 
This MO&O both clarifies and modifies the rules set forth in the R&O. 
These revisions work together to reduce both the staffing burden and 
the burden of maintaining multiple studios by permitting commonly owned 
LPTV stations having contiguous boundaries to share a main studio and 
staff. This alternative significantly reduces the costs associated with 
maintaining multiple studios and additional staff. In contrast the 
Commission could have merely clarified the staffing rule as set forth 
in the R&O and not modified the main studio location rule; however, the 
result works to benefit those small entities with multiple stations. 
Any further relaxation of the main studio rules would have been 
inconsistent with the intention and language of the CPBA which requires 
Class A stations to have a local presence and local programming.
    61. In the MO&O we permit Class A television stations that convert 
to digital operation to offer ancillary or supplementary services in 
the same manner as full power DTV stations. A petitioner to the R&O 
requested a modification of the rules to allow such stations to offer 
telecommunications services on either an ancillary or supplemental 
basis in the event that the station decides to convert to DTV. We have 
complied with this request and have created an alternative for Class A 
stations which are interested in converting to digital operation. Since

[[Page 21690]]

this is optional, it in no way should be perceived as a requirement for 
Class A licensure or operation. Class A stations are not required to 
convert to DTV under the CBPA.
    62. Lastly, we modify our decision regarding the use of carrier 
frequency offsets by Class A stations. We now require the use of 
frequency offsets to accommodate, where possible, certain Class A and 
full-service NTSC stations and, more generally, will require all Class 
A stations to specify operation with an offset within nine months of 
the release of this MO&O. In response to the R&O, two parties requested 
this modification in order to allow the stations to make more efficient 
use of scarce broadcast spectrum. These frequency offsets are of a 
nominal nature and if required, would result in the expenditure of 
modest financial resources. We believe that offset operations will 
greatly facilitate an increase in the number of Class A stations by 
maximizing use of the broadcast spectrum. The alternative, if we had 
not granted petitioners' requests, would have been to continue with the 
existing rule. Such a continuation would have resulted in fewer LPTV 
stations becoming Class A stations. Furthermore, this modification only 
affects those LPTV stations which choose to apply for a Class A 
license.
    63. Report to Congress: The Commission will send a copy of the 
MO&O, including this Supplemental FRFA, in a report to be sent to 
Congress pursuant to the Congressional Review Act. See 5 U.S.C. 
801(a)(1)(A). In addition, the Commission will send a copy of the MO&O, 
including the Supplemental FRFA, to the Chief Counsel for Advocacy of 
the SBA. A copy of the MO&O and Supplemental FRFA (or summaries 
thereof) will also be published in the Federal Register. See 5 U.S.C. 
604(b).

VII. Ordering Clauses

    64. Pursuant to authority contained in sections 1, 4(i), 303, and 
336(f) of the Communications Act of 1934, as amended, 47 U.S.C. 151, 
154(i), 303, and 336(f), part 73 of the Commission's rules, are amended 
as set forth.
    65. The amendments set forth shall be effective May 31, 2001, 
except for 47 CFR 73.1545(e), which contains information collection 
requirements that have not been approved by OMB. The Federal 
Communications Commission will publish a document in the Federal 
Register announcing the effective date.
    66. The petitions for reconsideration or clarification listed are 
granted to the extent provided herein and otherwise are denied.
    67. The Motion for Acceptance of late-Filed Petition for 
Reconsideration, filed on June 12, 2000 by Larry L. Schrecongost, is 
granted.
    68. The Emergency Petition for Extension of Time, filed on December 
4, 2000 by John W. Smith, Jr., is dismissed.
    69. The Commission's Consumer Information Bureau, Reference 
Information Center, shall send a copy of this MO&O, including the 
Supplemental Final Regulatory Flexibility Analysis, to the Chief 
Counsel for Advocacy of the Small Business Administration.
    This proceeding is terminated.

List of Subjects in 47 CFR Part 73

    Television, Radio.

Federal Communications Commission.
Magalie Roman Salas,
Secretary.

Rule Changes

    For the reasons set forth in the preamble part 73 title 47 of the 
Code of Federal Regulations is amended to read as follows:

PART 73--RADIO BROADCAST SERVICES

    1. The authority citation for part 73 continues to read as follows:

    Authority: 47 U.S.C. 154, 303, 334 and 336.


    2. Section 73.1125 is amended by revising paragraph (c) to read as 
follows:


Sec. 73.1125  Station main studio location.

* * * * *
    (c) Each Class A television station shall maintain a main studio at 
a location within the station's predicted Grade B contour, as defined 
in Sec. 73.683 and calculated using the method specified in 
Sec. 73.684. With respect to a group of commonly controlled stations, 
Class A stations whose predicted Grade B contours are physically 
contiguous to each other may locate their main studio within any of 
these contours. If a Class A station is one of a group of commonly 
controlled Class A stations, but its predicted Grade B contour is not 
physically contiguous to that of another Class A station in the 
commonly owned group, its main studio shall be located within its own 
predicted Grade B contour. Alternatively, a Class A television station 
shall maintain a main studio at the site used by the station as of 
November 29, 1999.
* * * * *

    3. Section 73.1545 is amended by revising paragraph (e) and adding 
a note to paragraph (e) to read as follows.


Sec. 73.1545  Carrier frequency departure tolerances.

* * * * *
    (e) Class A TV stations. The departure of the carrier frequency of 
Class A TV stations may not exceed the values specified in Sec. 74.761 
of this chapter. Provided, however, that Class A TV stations licensed 
to operate with a carrier offset, including those stations licensed 
with a maximum effective radiated power and/or antenna height greater 
than the values specified in their initial Class A TV station 
authorization, must comply with paragraph (c) of this section.


    Note to paragraph (e): At a date not later than nine months 
after release of the Memorandum Opinion and Order on Reconsideration 
in MM Docket No. 00-10 (the proceeding that established the Class A 
TV service), all licensed Class A stations must operate with a 
carrier frequency offset. See Memorandum Opinion and Order on 
Reconsideration, In the Matter of Establishment of a Class A 
Television Service, MM Docket No. 00-10, released April 13, 2001.


    4. Section 73.6000 is revised to read as follows:


Sec. 73.6000  Definitions.

    Locally produced programming. For the purpose of this subpart, 
locally produced programming is programming:
    (1) Produced within the predicted Grade B contour of the station 
broadcasting the program or within the contiguous predicted Grade B 
contours of any of the stations in a commonly owned group; or
    (2) Programming produced at the station's main studio.


    Note to Sec. 73.6000: See Report and Order, In the Matter of 
Establishment of a Class A Television Service, MM Docket No. 00-10, 
released April 4, 2000; Memorandum Opinion and Order on 
Reconsideration, In the Matter of Establishment of a Class A 
Television Service, MM Docket No. 00-10, released April 13, 2001.



    5. Section 73.6024 is amended by revising paragraph (c) to read as 
follows:


Sec. 73.6024  Transmission standards and system requirements.

* * * * *
    (c) A Class A TV station must meet the offset carrier frequency and 
frequency tolerance provisions of Sec. 73.1545 of this part.

    6. Section 73.6026 is revised to read as follows:


Sec. 73.6026  Broadcast regulations applicable to Class A television 
stations.

    The following rules are applicable to Class A television stations:


[[Page 21691]]


Sec. 73.603  Numerical designation of television channels.
Sec. 73.624(b), (c) and (g)  Digital television broadcast stations. 
Section 73.624(b) will apply only to the extent that such stations 
must also transmit at least one over-the-air video program signal at 
no direct charge to viewers of the digital Class A station
Sec. 73.635  Use of common antenna site.
Sec. 73.642  Subscription TV service.
Sec. 73.643  Subscription TV operating requirements.
Sec. 73.644  Subscription TV transmission systems.
Sec. 73.646  Telecommunications Service on the Vertical Blanking 
Interval and in the Visual Signal.
Sec. 73.653  Operation of TV aural and visual transmitters.
Sec. 73.658  Affiliation agreements and network program practice; 
territorial exclusivity in non-network program arrangements.
Sec. 73.664  Determining operating power.
Sec. 73.665  Use of TV aural baseband subcarriers.
Sec. 73.667  TV subsidiary communications services.
Sec. 73.669  TV stereophonic aural and multiplex subcarrier 
operation.
Sec. 73.670  Commercial limits in children's programs.
Sec. 73.671  Educational and informational programming for children.
Sec. 73.673  Public information initiatives regarding educational 
and informational programming for children.
Sec. 73.688  Indicating instruments.
Sec. 73.691  Visual modulation monitoring.
[FR Doc. 01-10706 Filed 4-30-01; 8:45 am]
BILLING CODE 6712-01-P