65072 Federal Register / Vol. 60, No. 242 / Monday, December 18, 1995 / Notices

1There is one exception to this rule: a cable

system which retransmits only local broadcast

signals must nonetheless submit a minimum royalty

fee under 17 U.S.C. 111. However, if the system

carries one or more distant signals, royalties are

only paid for those distant signals, and the local

signals carried are copyright-free. As a practical

matter, there are very few cable systems which only

carry local broadcast signals and no distant signals.

DEPARTMENT OF LABOR

Employment and Training

Administration

[NAFTA—00303; Lucas, Iowa, NAFTA—

00303A; Mt. Ayr, Iowa, NAFTA—00303B;

Osceola, Iowa, and NAFTA—00303C]

Iowa Assemblies, Inc., Murray, Iowa;

Amended Certification Regarding

Eligibility To Apply for NAFTA

Transitional Adjustment Assistance

In accordance with Section 250(a),

Subchapter D, Chapter 2, Title II, of the

Trade Act of 1974, as amended (19 USC

2273), the Department of Labor issued a

Notice of Certification of Eligibility to

Apply for NAFTA Transitional

Adjustment Assistance on January 12,

1995, applicable to all workers at Iowa

Assemblies, Inc. in Lucas, Mt. Ayr and

Osceola, Iowa.

At the request of the State Agency on

behalf of the company, the Department

reviewed the subject certification. The

company reports worker separations

will occur at the subject firm’s

manufacturing facilities in Mt. Ayr,

Osceola, and Murray, Iowa. The workers

produce among other products,

automotive wiring harnesses and wiring

assembly. The Department’s review of

the certification for workers of the

subject firm found that workers in Mt.

Ayr and Osceola, Iowa are currently

covered under the certification. When

the certification was issued, the Mt. Ayr

and Osceola locations of the subject firm

were not separately assigned a suffix

number. The intent of the Department’s

certification is to include all workers of

Iowa Assemblies, Inc. adversely affected

by increased imports of wiring

harnesses and assembly from Mexico or

Canada. Therefore, the Department is

amending the certification for workers

of the subject firm to separately identify

the Mt. Ayr and Osceola, Iowa locations,

and provide for the worker separations

in Murray, Iowa.

The amended notice applicable to

NAFTA–00303 is hereby issued as

follows:

‘‘All workers of Iowa Assemblies, Inc.,

Lucas (NAFTA–303), Mt. Ayr (NAFTA–

303A), Osceola (NAFTA–303B), and Murray

(NAFTA–0303C) Iowa engaged in

employment related to the production of

wiring harnesses and assembly who became

totally or partially separated from

employment on or after December 8, 1993 are

eligible to apply for NAFTA–TAA under

Section 250 of the Trade Act of 1974.’’

Signed at Washington, DC., this 5th day of

December 1995.

Russell T. Kile,

Acting Program Manager, Policy and

Reemployment Services, Office of Trade

Adjustment Assistance.

[FR Doc. 95–30652 Filed 12–15–95; 8:45 am]

BILLING CODE 4510–30–M

LIBRARY OF CONGRESS

Copyright Office

[Docket No. 95–8]

Copyright, Cable Compulsory License

AGENCY: Copyright Office, Library of

Congress.

ACTION: Notice of policy decision.

SUMMARY: The Copyright Office of the

Library of Congress is announcing a

policy decision with respect to the

examination and reporting of local

broadcast signals in light of the

amendment to section 111 of the

Copyright Act made by the Satellite

Home Viewer Act of 1994. For

examining cable statements of account,

the Office will use the same ADI list

used by the Federal Communications

Commission for its must-carry/

retransmission consent election, and

will treat a broadcast signal as local for

copyright purposes only within that

station’s ADI.

FOR FURTHER INFORMATION CONTACT:

Marilyn J. Kretsinger, Acting General

Counsel, or William Roberts, Senior

Attorney for Compulsory Licenses.

Telephone (202) 707–8380. Telefax

(202) 707–8366.

SUPPLEMENTARY INFORMATION:

I. Background

On October 18, 1994, the President of

the United States signed into law the

Satellite Home Viewer Act of 1994.

Public Law No. 103–369. In addition to

extending and amending the

compulsory license for satellite carriers

in 17 U.S.C. 119, the Home Viewer Act

expanded the cable compulsory license

definition of the ‘‘local service area of a

primary transmitter’’ in 17 U.S.C. 111 to

include a broadcast station’s ‘‘television

market as defined in section 76.55(e) of

title 47, Code of Federal Regulations (as

in effect on September 18, 1993), or any

modifications to such television market

made, on or after September 18, 1993,

pursuant to section 76.55(e) or 76.59 of

title 47 of the Code of Federal

Regulations’’ (parenthetical in original).

The amendment was made effective

beginning with the second accounting

period of 1994.

The definition of the ‘‘local service

area of a primary transmitter’’ in 17

U.S.C. 111(f) determines whether a

broadcast station is local or distant to a

cable system and consequently when it

must submit a royalty fee for

retransmission of that signal. Cable

systems pay royalties for carriage of

distant signals and may retransmit local

broadcast signals to their subscribers

without incurring copyright liability. 1

Prior to the passage of the Home Viewer

Act, the local service area definition

provided that a broadcast station was

local in the area that it could ‘‘insist

upon its signal being retransmitted by a

cable system pursuant to the rules,

regulations and authorizations of the

Federal Communications Commission

in effect on April 15, 1976* * *’’ 17

U.S.C. 111(f) (1976). This was a

reference to the Commission’s mustcarry rules in effect in 1976, and the

Copyright Act fixed these rules for all

future copyright determinations.

Although these must-carry rules were

ultimately declared unconstitutional,

see Quincy Cable T.V., Inc. v. FCC, 768

F.2d 1434 (D.C. Cir. 1985), cert. denied,

476 U.S. 1169 (1986) and Century

Communications v. FCC, 835 F.2d 292

(D.C. Cir. 1987), cert. denied, 486 U.S.

1032 (1988), they remain in effect for

purposes of 17 U.S.C. 111. See Quincy,

768 F.2d at 1454 n. 42. However,

because of the passage of time and

changes in telecommunications law and

policy, the 1976 must-carry rules no

longer reflect the realities of the current

marketplace. Congress, therefore,

amended the local service area

definition in the Home Viewer Act to

provide an additional means of

determining the local/distant copyright

status of broadcast stations.

The Home Viewer Act amendment

provides that, in addition to the area

encompassed by the 1976 must-carry

rules, a broadcast station is local for

copyright purposes in the area that

comprises that station’s television

market as defined in § 76.55(e) of the

FCC’s rules, and any subsequent

modifications made by the FCC to that

market. In many circumstances, a

station’s television market under

§ 76.55(e) creates a larger local service

area than under the 1976 must-carry

rules. Cable systems may use either the

television market or the 1976 must-carry
Federal Register / Vol. 60, No. 242 / Monday, December 18, 1995 / Notices 65073

2The Note further states that the 1994–1995 ADI

list will be used for the 1996 election, the 1997–

1998 list for the 1999 election, etc. Arbitron,

however, discontinued the Market Guide after

publication of the 1993–1994 edition. New criteria,

presumably Nielsen’s Designated Market Area, must

be adopted before the 1996 must-carry/

retransmission consent election, and the

Commission has stated that it will address the issue

before October 1, 1996. See Opinion & Order in MM

Docket No. 92–259 at 10 n. 45 (November 4, 1994).

rules, or both, in determining the local

service area of each broadcast station

they retransmit to their subscribers.

Section 76.55(e) of the FCC’s rules

defines a television market for purposes

of the Commission’s new must-carry

rules adopted to implement the Cable

Television Consumer Protection and

Competition Act of 1992. Public Law

102–385. The section provides in its

entirety:

(e) Television market. For purposes of the

must-carry rules:

(1) A local commercial broadcast television

station’s market shall be defined as its Area

of Dominant Influence (ADI) as determined

by Arbitron and published in its Television

ADI Market Guide or any successor

publication, as noted below, except that for

areas outside the contiguous 48 states the

area of dominant influence may be defined

using Nielsen’s Designated Market Area

(DMA), where applicable, and that Puerto

Rico, the U.S. Virgin Islands and Guam will

each be considered one ADI;

(2) A cable system’s television market(s)

shall be the one or more ADIs in which the

communities it serves are located;

(3) In addition, the county in which a

station’s community of license is located will

be considered within its market.

Note: For the 1993 must-carry/

retransmission consent election, the ADI

assignments specified in the 1991–1992

Television ADI Market Guide, available from

the Arbitron Ratings Co., 312 Marshall Ave.,

Laurel MD, will apply. ADI assignments will

be updated at three year intervals. For the

1996 election period, the 1994–1995 ADI list

will be used; the applicable list for the 1999

election will be the 1997–1998 list, etc.

47 CFR 76.55(e) (1993). The Home

Viewer Act fixes 47 CFR 76.55(e) as of

September 18, 1993, but expressly

includes any subsequent modifications

to television markets made under

§ 76.55(e) or § 76.59 of the

Commission’s rules. Modifications were

recognized by the Home Viewer Act

because, at the time of its passage, the

Arbitron Company had discontinued its

publication of the Television ADI

Market Guide and had filed for

bankruptcy.

Subsequent to the enactment of the

Home Viewer Act, the Copyright Office

amended its cable and satellite carrier

compulsory license rules and discussed

the changes brought about by the Act.

59 FR 67635 (December 30, 1994). The

new definition of the ‘‘local service area

of a primary transmitter’’ did not require

amendment of the rules; however, the

Office described the change in the

definition:

The other change to the cable compulsory

license made by the 1994 Home Viewer Act

is the broadening of the section 111(f)

definition of the ‘‘local service area of a

primary transmitter.’’ The definition is used

to determine when a broadcast station is

local or distant to a cable operator, which in

turn determines whether the operator must

pay a royalty fee for that station. Effective

July 1, 1994, the local service area of a

broadcast station for copyright purposes also

includes the area in which the station is

entitled to insist upon carriage of its signal

by a cable system (i.e. its must-carry zone),

in accordance with the rules of the Federal

Communications Commission in effect on

September 18, 1993, and any subsequent

modification of those rules.

Id. To date, this is all the Office has said

regarding the change made to the local

service area definition by the Home

Viewer Act.

II. Policy Issues

Amendment of the definition of the

‘‘local service area of a primary

transmitter’’ has led to questions in the

administration of the cable compulsory

license. Two of these questions must be

resolved in order for the Copyright

Office to administer the cable

compulsory license. The first question

involves the Copyright Office’s use of

ADI in its examination of cable

statements of account. As discussed

above, the amendment to the local

service area definition was made

effective beginning with the second

accounting period of 1994, and cable

systems are now using broadcast

stations’ ADI for determining the local/

distant status of the signals. The

question has arisen, however, as to the

appropriate ADI information to consider

in calculating the local service area of a

broadcast signal. The Note to 47 CFR

76.55(e) states that the FCC is using the

1991–1992 Television ADI Market

Guide for the 1993 must-carry/

retransmission consent election, and

that ADI assignments will be updated at

three year intervals. 2 Should cable

systems use the 1991–1992 Television

ADI Market Guide for the 1994/2

accounting period and the 1995

accounting year, or should they apply

the current ADI list to the corresponding

accounting period—i.e. the 1994 list to

the 1994 accounting year and the 1995

list to the 1995 accounting year, where

such information is available?

The second question involves the

determination of a broadcast station’s

‘‘television market’’ for a cable system

that serves a community or

communities in more than one county

where those counties are assigned to

different ADIs. Is the broadcast station

local for copyright purposes only in

those counties assigned to its ADI, or are

there circumstances where the station

may be reported as local outside of its

ADI?

III. Policy Decision

As part of its responsibility to

administer the cable compulsory

license, the Copyright Office is resolving

both the issues raised in this Notice.

With respect to which ADI (or

subsequent) list to use in examining

statements of account, the Office will

use only the list designated by the

Commission for the must-carry/

retransmission consent election. For

determinations of the local/distant

status of a broadcast station, the Office

is clarifying the circumstances under

which a station may be reported as local

for copyright purposes.

A. The ADI list

The amended local service area

definition expressly adopts Arbitron’s

ADI list in effect on September 18, 1993,

plus any subsequent modifications

made to that list pursuant to § 76.55(e)

or § 76.59 of the FCC’s rules. Section

76.55(e) provides that the ADI list in

effect on September 18, 1993, is the list

appearing in the 1991–1992 Television

ADI Market Guide. 47 CFR

76.55(e)(Note). It is further provided

that 1991–1992 Television ADI Market

Guide list will remain in effect until the

time of the 1996 must-carry/

retransmission consent, when the 1994–

1995 ADI list will be used. While it is

presumed that the ADI list applicable

for 1996 will account for the

termination of publication of the

Television ADI Market Guide, § 76.55(e)

makes it clear that the Commission will

only revise the ADI list at three-year

intervals. Because of the Home Viewer

Act’s direct reference to 47 CFR

76.55(e), the Copyright Office believes

that it is consistent with legislative

intent to use only the ADI (or

replacement) list used by the

Commission for the must-carry/

retransmission consent election. Thus,

for the 1994/2 accounting period, and

both accounting periods for 1995, the

Copyright Office will use the 1991–1992

Television ADI Market Guide in

determining the local/distant status of

broadcast signals. Cable operators

should use only this list for these

accounting periods; in examining

Statements of Account, the Copyright

Office will not recognize the ADI of a

broadcast station derived from any

source other than the 1991–1992

Television ADI Market Guide. For the
65074 Federal Register / Vol. 60, No. 242 / Monday, December 18, 1995 / Notices

3We acknowledge that changes made to a

station’s ADI under 47 CFR 76.55(e) or 76.59 will

undoubtably be for reasons related to the must-carry

rules; however, it is only changes made to a

station’s ADI under these two rules that matter for

copyright purposes.

1 15 U.S.C. § 78s(b)(1) (1988).

2CBOE amended its proposal to correct a

typographical error in the filing. Letter from

Michael L. Meyer, Schiff, Hardin & Waite, to Mark

Steffensen, Division of Market Regulation

(‘‘Division’’), Commission (October 26, 1995).

1996, 1997 and 1998 accounting years,

cable operators should use the list

adopted by the Commission for the 1996

must-carry/retransmission consent

election, and, for subsequent years, the

list adopted by the Commission for each

must-carry/retransmission consent

election period. If the Commission

should make modifications to television

markets in accordance with §§ 76.55(e)

and/or 76.59, or should generate a

television market list for the must-carry/

retransmission consent election other

than at three-year intervals, those

modifications should be applied to their

corresponding compulsory license

accounting periods in determining the

local service area of a broadcast station.

B. Local/Distant Status

In the December 30, 1994, adjustment

of our regulations to account for the

statutory changes made by the Home

Viewer Act, we described the Act’s

amendment to the local service area

definition in 17 U.S.C. 111(f) as

‘‘includ[ing] the area in which the

station is entitled to insist upon carriage

of its signal by a cable system (i.e. its

must-carry zone), in accordance with

the rules of the Federal

Communications Commission in effect

on September 18, 1993, and any

subsequent modification of those rules.’’

59 FR 67635 (December 30, 1994). We

believe we need to clarify this statement

as it relates to cable systems that serve

communities in more than one county

assigned to different ADIs.

Cable carriage by one system across

one or more ADIs does not appear to be

an uncommon occurrence. Each county

in the United States is allocated to a

market based on which home-market

stations receive a preponderance of total

viewing. Because many larger cable

systems typically serve several counties,

a ‘‘straddle’’ situation can occur where

a cable system carries a broadcast signal

assigned to one market in communities

within counties assigned to other

markets. This situation is further

complicated when such carriage is

pursuant to the FCC’s new must-carry

rules. How should cable systems

straddling different markets report

carriage of broadcast signals in those

markets for compulsory license

purposes?

The Home Viewer Act amendment to

the 17 U.S.C. 111(f) local service area

definition makes it clear that a broadcast

station’s television market is its ADI.

The Home Viewer Act defines

‘‘television market’’ by reference to

§ 76.55(e) of the FCC’s rules, which

provides that a broadcast station’s

television market is ‘‘its Area of

Dominant Influence (ADI) as

determined by Arbitron and published

in its Television ADI Market Guide

* * *’’ 47 CFR 76.55(e)(1). A broadcast

station’s ADI is also the area in which

it is entitled to assert mandatory

carriage rights on cable systems located

in that ADI. See Broadcast Signal

Carriage Issues, 8 FCC Rcd 2965, 2976–

2977 (1993). Thus, the Office

acknowledged in its December 30, 1994,

Federal Register notice the

correspondence between a broadcast

station’s must-carry area and its ADI;

however, it did not describe what

application, if any, this would have to

cable systems straddling more than one

ADI.

After reviewing the provisions of the

Cable Television Consumer Protection

and Competition Act of 1992 (‘‘1992

Cable Act’’), Public Law No. 102–385,

and the FCC’s implementing rules, it is

apparent that there are circumstances,

e.g., the ‘‘straddle’’ situation, where the

must-carry zone of a broadcast station

exceeds its ADI. The FCC stated in its

Report & Order implementing the 1992

Cable Act’s must-carry requirements

that in circumstances where a cable

system serves a community or

communities in more than one county

and those counties are assigned to

different ADIs, ‘‘all broadcast stations in

both ADIs will be considered ‘local’ for

must-carry purposes.’’ 8 FCC Rcd at

2976.

We do not believe that the application

of the must-carry rules adopted

pursuant to the 1992 Cable Act have any

direct bearing in determining the size of

the local service area of a broadcast

station for copyright purposes. The

copyright local service area is a

broadcast station’s television market as

defined in 47 CFR 76.55(e), which

means that it is the station’s ADI, plus

any modifications made to the ADI by

the Commission under § 76.55 or § 76.59

of its rules.3 The Office should not have

stated in the December 30, 1994,

Federal Register notice that the local

service area was equal to the station’s

must-carry zone, since such zone can, in

certain circumstances, be considered to

extend beyond a station’s ADI. Thus, in

the ‘‘straddle’’ situation, a cable system

may only report carriage of a broadcast

station as local under 17 U.S.C. 111 in

those communities assigned to the

station’s ADI, even though the system

may have must-carry obligations to

deliver the signal to communities

located in other ADIs.

We believe that this interpretation is

consistent with Congress’ intent in

amending the local service area

definition. The legislative history to the

Home Viewer Act does not indicate any

intention to equate the copyright local

service area with the must-carry

obligation, and to do so would do

violence to 17 U.S.C. 111(d)(1)(B) by

substantially reducing the occurrence of

partially local/partially distant signals.

Furthermore, Congress expressly

recognized in the 1992 Cable Act that

broadcast stations could be considered

distant signals for copyright purposes in

communities where they enjoyed mustcarry rights. 1992 Cable Act, section

614(h)(1)(b)(ii). Nothing in the Home

Viewer Act indicates an intention to

change this result.

Dated: December 4, 1995.

Marybeth Peters,

Register of Copyrights.

Approved by:

James H. Billington,

The Librarian of Congress.

[FR Doc. 95–30458 Filed 12–15–95; 8:45 am]

BILLING CODE 1410–31–P

SECURITIES AND EXCHANGE

COMMISSION

[Release No. 34–36568; Filed No. SR–

CBOE–95–62]

Self-Regulatory Organizations;

Chicago Board Options Exchange,

Incorporated; Notice of Filing of

Proposed Rule Change Regarding

Book-Entry Settlement of Securities

Transactions and Depository Eligibility

Requirements

December 8, 1995.

Pursuant to Section 19(b)(1) of the

Securities Exchange Act of 1934

(‘‘Act’’),1 notice is hereby given that on

October 19, 1995, the Chicago Board

Options Exchange, Incorporated

(‘‘CBOE’’) filed with the Securities and

Exchange Commission (‘‘Commission’’)

the proposed rule change described in

Items I, II, and III below, which items

have been prepared primarily by CBOE.

On October 26, 1995, CBOE filed an

amendment to the proposed rule

change.2 The Commission is publishing

this notice to solicit comments on the