[Federal Register Volume 61, Number 81 (Thursday, April 25, 1996)]
[Rules and Regulations]
[Pages 18289-18291]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-10169]



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FEDERAL COMMUNICATIONS COMMISSION

47 CFR PARTS 1 and 73
[FCC 96-172]


Implementation of Sections 204(a) and 204(c) of the 
Telecommunications Act of 1996 (Broadcast License Renewal Procedures)

AGENCY: Federal Communications Commission.

ACTION: Final Rule,

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SUMMARY: The Commission is implementing Sections 204(a) and 204(c) of 
the Telecommunications Act of 1996, which eliminate comparative renewal 
hearings for broadcast applications filed after May 1, 1995 and direct 
the Commission to grant a broadcaster's renewal application if 
statutory renewal standards are met. The action is necessary in order 
to conform the Commission's rules to Section 204(a) and (c) of the 
Telecommunications Act, and the intended effect of the action is to 
conform the rules to those statutory provisions.

EFFECTIVE DATE: April 25, 1996.

FOR FURTHER INFORMATION CONTACT: Mania K. Baghdadi, Mass Media Bureau, 
Policy and Rules Division (202) 418-2130.

SUPPLEMENTARY INFORMATION: This is a synopsis of the Commission's Order 
(In the Matter of Implementation of Sections 204(a) and 204(c) of the 
Telecommunications Act of 1996 (Broadcast Renewal Procedures)), adopted 
April 12, 1996, and released April 12, 1996. The complete text of this 
Order is available for inspection and copying during normal business 
hours in the FCC Reference Center (Room 239), 1919 M Street, NW., 
Washington, DC, and also may be purchased from the Commission's copy 
contractor, International Transcription Service, (202) 857-3800, 2100 M 
Street, NW., Suite 140, Washington, DC 20037.

Synopsis of Order

    1. This Order implements Sections 204(a) and 204(c) of the 
Telecommunications Act of 1996 (``Telecom Act'') [Pub. L. No. 104-104,

[[Page 18290]]

110 Stat. 56 (1996)], which adopts new Section 309(k) of the 
Communications Act applicable to broadcast renewal applications filed 
after May 1, 1995, eliminating comparative renewal hearings, 
establishing instead a new two-step renewal procedure, and directing 
the Commission to grant a broadcaster's renewal application if 
statutory renewal standards are met.
    2. New Section 309(k) states:
    (1) * * * If the licensee of a broadcast station submits an 
application to the Commission for renewal of such license, the 
Commission shall grant the application if it finds, with respect to 
that station, during the preceding term of its license--
    (A) the station has served the public interest, convenience, and 
necessity;
    (B) there have been no serious violations by the licensee of this 
Act or the rules and regulations of the Commission; and
    (C) there have been no other violations by the licensee of this Act 
or the rules and regulations of the Commission which, taken together, 
would constitute a pattern of abuse.
    (2) * * * If any licensee of a broadcast station fails to meet the 
requirements of this subsection, the Commission may deny the 
application for renewal in accordance with paragraph (3), or grant such 
application on terms and conditions as are appropriate, including 
renewal for a term less than the maximum otherwise permitted.
    (3) * * * If the Commission determines, after notice and 
opportunity for a hearing as provided in subsection (e), that a 
licensee has failed to meet the requirements specified in paragraph (1) 
and that no mitigating factors justify the imposition of lesser 
sanctions, the Commission shall--
    (A) issue an order denying the renewal application filed by such 
licensee under Section 308; and
    (B) only thereafter accept and consider such applications for a 
construction permit as may be filed under section 308 specifying the 
channel or broadcasting facilities of the former licensee.
    (4) * * * In making the determinations specified in paragraph (1) 
or (2), the Commission shall not consider whether the public interest, 
convenience, and necessity might be served by the grant of a license to 
a person other than the renewal applicant.

47 U.S.C. Sec. 309(k).

    3. Additionally, Section 204(a)(2) of the Telecom Act amends 
Section 309(d) of the Communications Act, 47 U.S.C. Sec. 309(d), to 
make the standard for filing petitions to deny conform to the statutory 
renewal standards. Thus, the statutory renewal standards are made 
applicable to the petitioner's required showing and the Commission's 
consequent findings in the case of a petition to deny a renewal 
application filed after the statutory effective date.
    4. The Telecom Act does not define the terms contained in the 
renewal standards embodied in Section 309(k), and we likewise do not 
define those terms in the Order. It is our present intent to continue 
to apply existing policy statements and case law, refining these as 
appropriate on a case-by-case basis, in interpreting the statutory 
terms that govern the new renewal process. If we determine at some 
future time that further clarification is appropriate, we shall conduct 
such proceedings as may be warranted.
    5. Administrative Matters. We are revising the rules as detailed 
below without providing prior notice and an opportunity for comment. 
For applications filed after May 1, 1995, the revisions simply reflect 
the changes mandated by the applicable provisions of the Telecom Act 
eliminating comparative renewals and codifying certain renewal 
standards. We find that notice and comment procedures are unnecessary, 
and that this action therefore falls within the ``good cause'' 
exception of the Administrative Procedure Act (``APA''). See 5 U.S.C. 
553(b)(B) (notice requirements inapplicable ``when the agency for good 
cause . . . finds that notice and public procedure thereon are 
impracticable, unnecessary, or contrary to the public interest''). We 
further find for the same reasons that good cause exists to make the 
rule changes adopted herein effective upon publication of this Order in 
the Federal Register. See id. at 553(d)(3). The rule changes adopted in 
this Order do not involve discretionary action by the Commission. 
Rather, they simply reiterate in our rules specific terms set forth in 
legislation. Additionally, with respect to the revisions that involve 
rules of agency organization and procedure, the notice and comment 
requirements of the APA are inapplicable. See 5 U.S.C. Sec. 553(b)(A).
    6. Termination of Comparative Renewal Rule Making. In light of the 
elimination of the comparative renewal procedure, we will terminate BC 
Docket No. 81-742, in which the Commission is considering reforming the 
comparative renewal process. See Third Further Notice of Inquiry and 
Notice of Proposed Rule Making in BC Docket No. 81-742, 4 FCC Rcd 6363 
(1989) [57 FR 35357 (August 25, 1989]) and preceding Notices of Inquiry 
and Notice of Proposed Rule Making cited therein. We believe that it 
would not represent the most productive use of our resources to 
conclude Docket No. 81-742 since it will apply only to a limited number 
of comparative renewal proceedings.
    7. Effective Dates. Pursuant to the Telecom Act, Section 309(k) 
will be applied to renewal applications filed after May 1, 1995, and 
the rule changes made to implement the new renewal provisions of the 
Telecom Act reflect the statutory effective date. Pending comparative 
renewal proceedings and mutual exclusivities involving applications 
filed on or before May 1, 1995 will be concluded pursuant to the 
current rules, and accordingly, we will leave intact procedural 
provisions of the current rules that refer to comparative renewal 
proceedings until those pending proceedings and exclusivities are 
finally resolved. We wish to reiterate that our failure to amend or 
eliminate a rule that refers to or applies to comparative renewal 
proceedings results only from the need to conclude those ongoing 
proceedings. We wish to make clear that applications filed on or before 
May 1, 1995 will be subject to our current renewal standards and 
procedures, while applications filed after May 1, 1995 will be subject 
to the new renewal provisions adopted in Section 204 of the Telecom 
Act.
    8. Ordering Clause. Accordingly, IT IS ORDERED that, pursuant to 
Section 204 of the Telecommunications Act of 1996, and to Sections 4(i) 
and 303(r) of the Communications Act of 1934 as amended, 47 U.S.C. 
Secs. 154(i), 303(r), Parts 1 and 73 of the Commission's Rules is 
amended as set forth below. The rule changes are effective upon 
publication of this Order in the Federal Register. IT IS FURTHER 
ORDERED that BC Docket No. 81-742 is hereby terminated.

List of Subjects

47 CFR Part 1

    Radio, Television.

47 CFR Part 73

    Radio broadcasting, Television broadcasting.

Federal Communications Commission.
William F. Caton,
Acting Secretary.

Rule Changes

    Parts 1 and 73 of Title 47 of the Code of Federal Regulations are 
amended as follows:

[[Page 18291]]

PART 1--PRACTICE AND PROCEDURE

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

    Authority: 47 U.S.C. 151, 154, 303 and 309(j) unless otherwise 
noted.

    2. Section 1.227 is amended by revising paragraph (b)(6) to read as 
follows:


Sec. 1.227  Consolidations.

* * * * *
    (b) * * *
    (6) An application which is mutually exclusive with an application 
for renewal of license of a broadcast station filed on or before May 1, 
1995 will be designated for comparative hearing with such license 
renewal application if it is substantially complete and tendered for 
filing no later than the date prescribed in Sec. 73.3516(e).

PART 73--RADIO BROADCAST SERVICES

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

    Authority: 46 U.S.C. 154, 303, 304.

    4. Section 73.561 is amended by revising the last sentence of the 
introductory text of paragraph (b) to read as follows:


Sec. 73.561  Operating schedule; time sharing.

* * * * *
    (b) * * * In order to be considered for this purpose, such an 
application to share time must be filed no later than the deadline for 
filing petitions to deny the renewal application of the existing 
licensee, or, in the case of renewal applications filed by the existing 
licensee on or before May 1, 1995, no later than the deadline for 
filing applications in conflict with the such renewal applications.
* * * * *
    5. Section 73.1020 is amended by revising paragraph (b) to read as 
follows:


Sec. 73.1020  Station license period.

* * * * *
    (b) For the cutoff date for the filing of applications mutually 
exclusive with renewal applications that are filed on or before May 1, 
1995 and for the deadline for filing petitions to deny renewal 
applications, see Sec. 73.3516(e).
    6. Section 73.3516 is amended by revising the introductory text of 
paragraph (e) and paragraph (e)(1) to read as follows:


Sec. 73.3516  Specification of facilities.

* * * * *
    (e) An application for construction permit for a new broadcast 
station or for modification of construction permit or license of a 
previously authorized broadcast station will not be accepted for filing 
if it is mutually exclusive with an application for renewal of license 
of an existing broadcast station unless the application for renewal of 
license is filed on or before May 1, 1995 and unless the mutually 
exclusive construction permit application is tendered for filing by the 
end of the first day of the last full calendar month of the expiring 
license term. A petition to deny an application for renewal of license 
of an existing broadcast station will be considered as timely filed if 
it is tendered for filing by the end of the first day of the last full 
calendar month of the expiring license term.
    (1) If the license renewal application is not timely filed as 
prescribed in Sec. 73.3539, the deadline for filing petitions to deny 
thereto is the 90th day after the FCC gives public notice that it has 
accepted the late-filed renewal application for filing. In the case of 
a renewal application filed on or before May 1, 1995, if the license 
renewal application is not timely filed as prescribed in Sec. 73.3539, 
the deadline for filing applications mutually exclusive therewith is 
the 90th day after the FCC gives public notice that it has accepted the 
late-filed renewal application for filing.
* * * * *
    7. Section 73.3523 is amended by revising paragraph (a) to read as 
follows:


Sec. 73.3523  Dismissal of applications in renewal proceedings.

    (a) An applicant for construction permit, that has filed an 
application that is mutually exclusive with an application for renewal 
of a license of an AM, FM or television station (hereinafter competing 
applicant'') filed on or before May 1, 1995, and seeks to dismiss or 
withdraw its application and thereby remove a conflict between 
applications pending before the Commission, must obtain the approval of 
the Commission.
* * * * *
    8. Section 73.3584 is amended by revising the third sentence of 
paragraph (a) to read as follows:


Sec. 73.3584  Procedure for filing petitions to deny.

    (a) * * * In the case of applications for renewal of license, 
Petitions to Deny may be filed at any time up to the deadline 
established in Sec. 73.3516(e). * * *
* * * * *
    9. Section 73.3591 is amended by revising the introductory text of 
paragraph (a), paragraph (c), and adding new paragraph (d) to read as 
follows.


Sec. 73.3591  Grants without hearing.

    (a) Except for renewal applications filed after May 1, 1995 which 
will be subject to paragraph (d) of this section, in the case of any 
application for an instrument of authorization, other than a license 
pursuant to a construction permit, the FCC will make the grant if it 
finds (on the basis of the application, the pleadings filed or other 
matters which it may officially notice) that the application presents 
no substantial and material question of fact and meets the following 
requirements:
* * * * *
    (c) If a petition to deny the application has been filed in 
accordance with Sec. 73.3584 and the FCC makes the grant in accordance 
with paragraph (a) of this section, the FCC will deny the petition and 
issue a concise statement setting forth the reasons for denial and 
disposing of all substantial issues raised by the petition.
    (d) Renewal applications filed after May 1, 1995 will be governed 
by the criteria established in 47 U.S.C. Sec. 309(k).

[FR Doc. 96-10169 Filed 4-24-96; 8:45 am]
BILLING CODE 6712-01-P