97-2755. Broadcast License Terms  

  • [Federal Register Volume 62, Number 24 (Wednesday, February 5, 1997)]
    [Rules and Regulations]
    [Pages 5339-5347]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 97-2755]
    
    
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    FEDERAL COMMUNICATIONS COMMISSION
    
    47 CFR Parts 73 and 74
    
    [MM Docket No. 96-90, FCC 97-17]
    
    
    Broadcast License Terms
    
    AGENCY: Federal Communications Commission.
    
    ACTION: Final rule.
    
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    SUMMARY: We issue this Report and Order (``R&O'') to implement Section 
    203 of the Telecommunications Act of 1996 (``Telecom Act'') (Broadcast
    
    [[Page 5340]]
    
    License Terms). Section 203 eliminates the statutory distinction 
    between the maximum allowable license terms for television stations and 
    radio stations, and provides that such licenses may be for terms ``not 
    to exceed 8 years.'' Amendment of the Commission's Rules is necessary 
    to conform them to Section 203 of the Telecom Act. In a Notice of 
    Proposed Rule Making published on April 23, 1996, we sought comment on 
    our request to amend our rules to extend broadcast license terms to 8 
    years, as well as on our request for implementing this change within 
    the framework of existing license renewal cycles.
    
    EFFECTIVE DATE: The rule changes contained in this Report and Order 
    will become effective March 7, 1997.
    
    FOR FURTHER INFORMATION CONTACT: Robert Somers, Mass Media Bureau, 
    Policy and Rules Division, (202) 418-2130.
    
    SUPPLEMENTARY INFORMATION: This is a synopsis of the Report and Order 
    in MM Docket No. 96-90, FCC 97-17, adopted January 23, 1997, and 
    released January 24, 1997. The complete text of this Report and Order 
    is available for inspection and copying during normal business hours in 
    the FCC Reference Center (Room 239), 1919 M Street, NW, Washington, DC, 
    and also may be purchased from the Commission's copy contractor, 
    International Transcription Service (ITS), (202) 857-3800, 1919 M 
    Street, NW., Room 246, Washington, DC 20554.
    
    I. Synopsis of Report and Order Extending License Terms for Broadcast 
    Facilities
    
        1. On February 8, 1996, President Clinton signed into law the 
    Telecommunications Act of 1996 (``Telecom Act'').1 Section 203 of 
    the Telecom Act modifies the previous statutory provisions regarding 
    license terms for broadcast stations in two principal ways.2 
    First, it eliminates the statutory distinction between the maximum 
    allowable license terms for television stations and radio stations. 
    Second, Section 203 provides that such licenses may be for terms ``not 
    to exceed 8 years,'' thus increasing the previous allowable statutory 
    maximum terms of 5 years for television stations and 7 years for radio 
    stations.
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        \1\ Public Law 104-104, 110 Stat. 56 (1996).
        \2\ The statutory provisions governing the license terms for 
    broadcast stations are contained in Section 307(c) of the 
    Communications Act of 1934, as amended, 47 U.S.C. 307(c).
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        2. On April 12, 1996, we issued a Notice of Proposed Rule Making 
    (``NPRM'') 3 to implement these new statutory provisions regarding 
    broadcast license terms. Specifically, we sought comment on our 
    proposals to extend broadcast license terms to 8 years, to treat all 
    but experimental broadcast stations uniformly for purposes of license 
    terms, and to maintain the existing synchronization of the broadcast 
    license renewal cycle based on 8-year license terms by extending the 
    terms of recently renewed licenses. In this Report and Order, the 
    Commission adopts these proposals.
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        \3\ Notice of Proposed Rule Making in MM Docket No. 96-90, FCC 
    96-169, (released April 12, 1996), 61 FR 17864 (April 23, 1996).
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    II. Background
    
        3. Section 307(c) of the Communications Act of 1934, as amended, 
    (``Communications Act'') 47 U.S.C. 307(c), authorizes the Commission to 
    establish the period or periods for which licenses shall be granted or 
    renewed. Prior to the enactment of the Telecom Act, Section 307(c) 
    provided that the licenses of television stations, including low power 
    TV stations, could be issued for a term of no longer than 5 years. It 
    further provided that license terms for radio stations, including 
    auxiliary facilities, could be issued for a period not to exceed 7 
    years. These were the maximum allowable license terms and the 
    Commission had the discretion to grant or renew a broadcast license for 
    a shorter period if the public interest, convenience, and necessity 
    would be served by such action. Consistent with these statutory 
    provisions, Sec. 73.1020 of the Commission's Rules currently states 
    that ``[r]adio broadcasting stations will ordinarily be renewed for 7 
    years and TV broadcast stations will be renewed for 5 years. However, 
    if the FCC finds that the public interest, convenience and necessity 
    will be served thereby, it may issue either an initial license or a 
    renewal thereof for a lesser term.'' 47 CFR 73.1020. Section 73.1020 
    also sets forth a renewal schedule for broadcast stations based on the 
    geographical region of the country in which each station is 
    located.4
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        \4\  Section 74.15 of the Commission's Rules, 47 CFR 74.15, sets 
    forth the license terms and renewal cycles for other classes of 
    broadcast facilities. Licenses for experimental broadcast stations 
    are issued for 1-year terms under Sec. 74.15(a). Under 
    Sec. 74.15(b), licenses for auxiliary broadcast stations or systems 
    are issued for a period running concurrently with the license of the 
    associated broadcast station with which it is licensed. Licenses for 
    FM and TV booster stations are issued for a period running 
    concurrently with the license of the primary stations with which 
    they are used pursuant to Sec. 74.15(c). Initial licenses for low 
    power TV, TV translator, and FM translator stations will ordinarily 
    be issued for a period running until the date specified in the 
    renewal cycle portion of Sec. 74.15(d) depending on the geographic 
    area in which the stations are located. Under our current rules, low 
    power TV and TV translator stations are ordinarily renewed for 5 
    years, and FM translator stations are ordinarily renewed for 7 
    years. Section 73.733 of the Commission's Rules, 47 CFR 73.733, sets 
    forth the license terms for international broadcasting stations, 
    which are normally issued for a term of 7 years.
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        4. Section 203 of the Telecom Act amends Section 307(c) of the 
    Communications Act to read as follows:
    
        Each license granted for the operation of a broadcasting station 
    shall be for a term of not to exceed 8 years. Upon application 
    therefor, a renewal of such license may be granted from time to time 
    for a term of not to exceed 8 years from the date of expiration of 
    the preceding license, if the Commission finds that public interest, 
    convenience, and necessity would be served thereby. Consistent with 
    the foregoing provisions of this subsection, the Commission may by 
    rule prescribe the period or periods for which licenses shall be 
    granted and renewed for particular classes of stations, but the 
    Commission may not adopt or follow any rule which would preclude it, 
    in any case involving a station of a particular class, from granting 
    or renewing a license for a shorter period than that prescribed for 
    stations of such class if, in its judgment, the public interest, 
    convenience, or necessity would be served by such action.
    
    III. Discussion
    
        5. Comments. Most commenters, including the National Broadcasting 
    Company (``NBC''), Capital Cities/ABC, Inc. (``ABC''), the National 
    Association of Broadcasters (``NAB''), and the Association of Local 
    Television Stations (``ALTV''), support our proposal for 8-year license 
    terms and agree with the rationale set forth in the NPRM. Two parties, 
    the Media Access Project and the Center for Media Education (``MAP/
    CME''), filed joint comments disagreeing with our proposal and 
    rationale for 8-year license terms. According to MAP/CME, the 
    Commission should exercise its discretion to extend license terms only 
    if it adds quantitative requirements for locally originated programming 
    addressing community issues, news, and children's educational 
    programming. MAP/CME also assert that the Commission's rationale 
    improperly focuses on the best interests of broadcasters rather than on 
    the public interest. We address these comments in the course of the 
    substantive discussion below.
        6. License Terms for Full Service Broadcast Stations. The Telecom 
    Act eliminated the statutory distinction between television and radio 
    services for purposes of establishing the maximum allowable license 
    terms. In this regard, the legislative history states:
    
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    ``By applying a uniform license term * * * for all broadcast station 
    licenses, the Committee simply recognizes that there is no reason for 
    longer radio license terms than for television licenses. The Committee 
    intends that applying a uniform license term * * * for radio and 
    television licenses will enable the Commission to operate more 
    efficiently in the awarding of new or renewed licenses for all 
    broadcast licenses.'' H.R. Rep. No. 104-204, Section 304, 104th Cong., 
    1st Sess. 122 (1995). The NPRM proposed to eliminate the current 
    distinction in our rules between the license terms for full service 
    broadcast television stations and radio stations.5 No commenter 
    takes issue with this proposal. Indeed, eliminating this distinction 
    would help to streamline the licensing process and better utilize the 
    administrative resources of both licensees and the Commission. 
    Accordingly, we hereby amend Section 73.1020 of the Commission's Rules, 
    47 CFR 73.1020, to eliminate any distinction between full service 
    television and radio stations for purposes of establishing the maximum 
    allowable license terms.
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        \5\ NPRM at para. 6.
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        7. In addition to eliminating the distinction between full service 
    television and radio station licenses, we also believe it is in the 
    public interest to adopt our proposal in the NPRM to provide that these 
    licenses ordinarily have the maximum 8-year term authorized under the 
    Telecom Act. While the statutory language provides the Commission 
    discretion in this area, the Act's legislative history indicates a 
    clear Congressional intent that the Commission adopt the maximum 8-year 
    license term. Indeed, the Conference Report states that Section 203 of 
    the Telecom Act ``extends the license term for broadcast licenses to 
    eight years for both television and radio.'' 6 Extending broadcast 
    license terms will reduce the burden to broadcasters of seeking more 
    frequent renewal of their licenses and the associated burdens on the 
    Commission. This is in accord with longstanding Congressional and 
    Commission policy in favor of reducing regulatory burdens wherever 
    appropriate.7 By reducing such burdens, we will allow broadcasters 
    to operate more efficiently in an increasingly competitive marketplace, 
    and thus help ``assure the maximum service to the public at the lowest 
    cost and with the least amount of regulation and paperwork.'' 8 
    Given this, and the clear Congressional intent in enacting Section 203 
    of the Telecom Act, we will ordinarily provide broadcasters with the 
    maximum 8-year term. This decision is consistent with past Commission 
    practice; our current rules provide for the maximum license terms in 
    accordance with previous statutory maximum terms of 5 years for 
    television stations and 7 years for radio stations.9
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        \6\ S. Conf. Rep. 104-230, 104th Cong. 2d Sess. 164 (1996).
        \7\ See S. Conf. Rep. 104-230, 104th Cong. 2d Sess. 1 (1996) 
    (purpose of Telecom Act is ``* * * to provide for a pro-competitive, 
    de-regulatory national policy framework * * *.''); S. Conf. Rep. 96-
    878, 96th Cong. 2d Sess. 1 (1980) (purpose of Regulatory Flexibility 
    Act is ``to encourage Federal agencies to utilize innovative 
    administrative procedures in dealing with individuals, small 
    businesses, small organizations, and small governmental bodies that 
    would otherwise be unnecessarily adversely affected by Federal 
    regulations''). See also Review of Prime Time Access Rule, 11 FCC 
    Rcd 546 (1995) (repealing prime time access rule as no longer 
    necessary to serve the public interest).
        \8\ Deregulation of Radio, 84 FCC 2d 968, 971 (1981), recon. 87 
    FCC 2d 797 (1981), remanded on other grounds sub nom. Office of 
    Communications of the United Church of Christ v. FCC, 707 F.2d 1413 
    (D.C. Cir. 1983). Most commenters support extending broadcast 
    license terms to 8 years. See National Association of Broadcasters 
    (``NAB'') Comments at 1-2; Capital Cities/ABC, Inc. (``CC/ABC'') 
    Comments at 1-2; NBC Comments at 2; Association of Local Television 
    Stations (``ALTV'') Reply Comments at 3-6. Commenters point out that 
    longer license terms may encourage more long-term planning and 
    capital investments in the industry. They further believe that 8-
    year license terms may promote more innovations in programming and 
    service, as stations will have a longer period in which to develop a 
    record of performance with previously untested or novel formats. 
    See, e.g., NBC Comments at 2.
        \9\ The 5 and 7 year terms for new licenses and license renewals 
    were enacted into law pursuant to the Omnibus Budget Reconciliation 
    Act of 1981. Public Law 97-35, 95 Stat. 357. That legislation 
    amended Section 307 of the Communications Act, extending the maximum 
    allowable 3-year license term previously prescribed for both radio 
    and television stations.
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        8. MAP/CME opposes extending broadcast license terms to eight 
    years. It asserts that longer license terms will undermine meaningful 
    public review of broadcasters' performance, especially when considered 
    in conjunction with the new two-step license renewal process mandated 
    under Sections 204 (a) and (c) of the Telecom Act which eliminates 
    comparative renewal hearings and directs the Commission to grant a 
    broadcaster's renewal if certain public interest renewal standards are 
    met.10 While we acknowledge MAP/CME's concerns, on balance, we 
    believe adopting the maximum terms provided by statute is in the public 
    interest and is consistent with Congressional intent. We do not intend 
    that this action should affect licensees' compliance with public 
    interest obligations and our ability to monitor such compliance. Hence, 
    we remind broadcasters that their public interest responsibilities 
    extend throughout the entire license term.11 Additionally, the 
    public will continue to have the ability to scrutinize station 
    performance or to bring to the Commission's attention any shortcomings 
    in performance by filing petitions to deny and informal objections at 
    renewal time. Likewise, the public's right to file complaints with the 
    Commission at any time during the license term is unaffected by longer 
    license terms. To the extent MAP/CME believes it is necessary to revise 
    license renewal standards to provide a better measure to evaluate 
    licensee performance in the absence of comparative renewal challenges, 
    that issue is not before us in this proceeding.12
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        \10\ MAP/CME Comments at 3-4. The Commission recently 
    implemented the new two-step renewal process. See Implementation of 
    Sections 204(a) and 204(c) of the Telecommunications Act of 1996 
    (Broadcast License Renewal Procedures), FCC No. 96-172 (released 
    April 12, 1996).
        \11\ This reminder applies to radio as well as television 
    broadcasters, although the extension of the radio license term from 
    7 to 8 years is a small one compared to the extension of television 
    license terms from 5 to 8 years. We note in this regard that in its 
    recent decision adopting revised children's television rules, the 
    Commission stated that it would monitor industry compliance with the 
    Children's Television Act of 1990 (``CTA'') by requiring commercial 
    broadcast television stations to place in their public inspection 
    files quarterly reports regarding their compliance with the CTA and, 
    for an experimental period of three years, to file these children's 
    programming reports with the Commission on an annual basis. Report 
    and Order in MM Docket No. 93-48, FCC 96-335, at para. 140 (released 
    Aug. 8, 1996). The Commission also stated that Commission staff will 
    conduct selected individual station audits during this time period 
    to assess station performance under the new children's television 
    rules. Id.
        \12\ See also infra paragraph 10.
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        9. MAP/CME also asserts that the Commission's rationale for 
    extending license terms improperly focuses on what best serves the 
    interests of broadcasters, rather than on the best interests of viewers 
    and listeners.13 In addition, MAP/CME challenges NBC's assertions 
    that longer license terms will create more stability among broadcasters 
    and result in more capital investment in public service and innovative 
    programming. MAP/CME asserts that NBC's claimed public benefits are 
    entirely hypothetical and that there is no evidence from past 
    deregulation that broadcasters will invest additional money in improved 
    programming.14 As noted above, however, eliminating unnecessary 
    regulatory burdens can allow the competitive marketplace to operate 
    more efficiently, which in turn can enhance the opportunity to further 
    the public interest through improved service delivered to the public. 
    We believe Congress, in providing us
    
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    authority to do so, made the same reasonable judgment that lengthening 
    broadcast license terms is an appropriate deregulatory measure that 
    would lead to public benefits. If, after some experience with the new 
    8-year license term, MAP/CME believes the new term is adversely 
    affecting the public interest, it may bring its concerns to our 
    attention at that time.
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        \13\ MAP/CME Comments at 3-5.
        \14\ MAP/CME Reply Comments at 4-5.
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        10. Finally, MAP/CME argues the Commission should extend broadcast 
    license terms to the maximum 8-year period only if it adds quantitative 
    requirements for locally-originated programming addressing community 
    issues, news, and children's educational programming.15 As noted 
    above, see paragraph 8, we believe that MAP/CME's proposal is beyond 
    the scope of this proceeding.
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        \15\ MAP/CME Comments at 2-4; MAP/CME Reply Comments at 2.
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        11. In sum, we find that the 8-year term, on balance, would serve 
    the public interest. Accordingly, we amend our rules to provide that 
    broadcast licenses ordinarily have the maximum 8-year term authorized 
    under the Telecom Act. As stated in the NPRM, we believe that this 
    result will reduce the burden on broadcasters and is consistent with 
    both past Commission practice and the legislative history of the 
    Telecom Act. We believe this change in broadcast license terms on 
    balance is consistent with the public interest since licensees will 
    continue to be subject to scrutiny by both the public and the 
    Commission. In keeping with this concern, we reiterate that Section 203 
    of the Telecom Act, as well as our revised rules, explicitly reserve 
    the Commission's authority to grant individual licenses for less than 
    the statutory maximum if the public interest, convenience, and 
    necessity would be served by such action.
        12. Other Classes of Broadcast Stations. Section 203 of the Telecom 
    Act states in part: ``the Commission may by rule prescribe the period 
    or periods for which licenses shall be granted and renewed for 
    particular classes of stations * * *.'' While this provision provides 
    us authority to designate different license terms for particular 
    classes of stations (provided that they do not exceed 8 years), we 
    proposed in the NPRM to treat all but experimental broadcast stations 
    uniformly.
        13. As proposed in the NPRM, we will track the approach we take 
    with full-service stations and adopt an 8-year license term for FM and 
    TV translator facilities and low power TV stations, as well as for 
    international broadcasting stations. This approach is consistent with 
    our current practice of treating these different classes of stations 
    uniformly.16 We believe that each of these services will benefit 
    from the stability and reduced administrative burden which will result 
    from a longer license term. Because of the tentative nature and limited 
    purpose of experimental stations, however, it would not be appropriate 
    to grant such stations longer license terms and they will continue to 
    be licensed for one-year terms. Commenters agreed with this 
    approach.17
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        \16\ See Report and Order in MM Docket No. 92-168, 9 FCC Rcd 
    6504 (1994).
        \17\ See NBC Comments at 3.
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        14. We will also continue our practice, set forth in Sec. 74.15 (b) 
    and (c) of our Rules, of tying the license terms for auxiliary and 
    booster facilities to the license terms of the broadcast stations with 
    which they are associated. Our current practice of tying the license 
    terms of all auxiliary and booster facilities with the main station 
    license eases the administrative burden on both Commission staff and 
    broadcast station licensees, who would otherwise need an intricate 
    record-keeping system to ensure that all licenses were renewed at the 
    appropriate time.
        15. ABC/Capital Cities seeks clarification concerning auxiliary 
    facilities used by television and radio networks. ABC believes it would 
    be preferable for all licenses of a given network entity in the same 
    state to come up for renewal at the same time to eliminate potential 
    discrepancies that may exist under the current system. It requests that 
    the Commission specify in Sec. 74.15(b) of the Commission's Rules that 
    television network auxiliary licenses shall have terms running 
    concurrently with television broadcast stations located in the same 
    state, and that radio network auxiliary licenses shall have terms 
    running concurrently with radio broadcast stations located in the same 
    state. ABC/Capital Cities also urges that the renewal terms for video 
    microwave licenses issued under Sec. 74.15(f) of the Commission's Rules 
    run concurrently with the terms of television network auxiliary 
    licenses granted under Subparts D and H of Part 74 of the Commission's 
    Rules.18
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        \18\ ABC/Capital Cities Comments at 4.
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        16. We agree with the ABC/Capital Cities proposals concerning 
    television and radio network auxiliary licenses and video microwave 
    licenses. We believe that these proposals are consistent with both the 
    Telecom Act and the NPRM and would simplify the license renewal process 
    and eliminate potential confusion about renewal dates by treating these 
    different classes of broadcast licenses uniformly. Accordingly, network 
    auxiliary stations and video microwave licenses will generally be 
    linked to the license terms of full-service broadcast stations in the 
    same state, and will ordinarily be granted for a term of 8 
    years.19
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        \19\ Network auxiliary licenses and video microwave licenses are 
    processed in the Gettysburg office of the Commission's Wireless 
    Telecommunications Bureau. We will implement the linkage proposed by 
    ABC, and the new 8-year license terms for these network auxiliary 
    and microwave facilities, as the licenses for these facilities come 
    up for renewal. Commission staff will process these renewals so 
    that, over the course of time, the license terms for these 
    facilities will be linked to the license terms of full-service 
    broadcast stations in the same state and share the same 8-year term, 
    except for those facilities which serve more than a single state. In 
    those instances where multiple states are served by a facility, the 
    license term will continue to be based on the date of initial 
    license grant rather than the license terms of full-service 
    broadcast stations for a particular state.
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        17. Implementation of Amended License Term Provisions. Section 203 
    of the Telecom Act and the legislative history are silent as to whether 
    existing broadcast station licenses may be modified immediately to 
    conform to any new license terms that may be adopted.
        18. As we noted in the NPRM the implementation issue is important 
    because of the logistics involved in renewing broadcast licenses. Under 
    Secs. 73.1020 and 74.15 of the Commission's Rules, all of the licenses 
    for a particular class of broadcast stations expire at fixed intervals 
    over a 3-year period. To stagger the processing of renewal applications 
    and thus perform this task more efficiently, the country is divided 
    into 18 different regions containing 1 or more states for purposes of 
    establishing synchronized schedules for radio and television license 
    renewals. The radio renewal schedule and the television renewal 
    schedule operate on separate and distinct cycles that do not run 
    concurrently. Accordingly, once all radio licenses have been renewed as 
    scheduled, there is a 50-month hiatus before the radio renewal cycle 
    begins again. Similarly, once all television licenses have been renewed 
    as scheduled, there is a 26-month hiatus before the television renewal 
    cycle begins again.
        19. Because of the cyclical nature of this process, any change in 
    the length of the license term implemented in the middle of a renewal 
    cycle could undermine the synchronization of the whole renewal process. 
    In 1981, when Congress last amended the length of broadcast license 
    terms, two factors allowed us to avoid any such synchronization 
    problems. First, under
    
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    the statute in effect at that time, both radio and television licenses 
    had 3-year maximum terms and the renewal cycles for radio and 
    television ran concurrently. Furthermore, the renewal cycles for both 
    radio and television had not yet begun when the rules implementing the 
    amended statute took effect. Accordingly, pursuant to the explicit 
    Congressional mandate contained in the amended statute, Public Law 97-
    35, 95 Stat. 357,736 (1981), the Commission applied the longer license 
    terms prospectively as stations came up for renewal following the 
    legislation's enactment. See Order, Amendment of Section 73.1020 of the 
    Commission's Rules, 88 F.C.C. 2d 355, 356 (1981).
        20. There is, however, a significant difference between the renewal 
    situation in 1981 and the current situation. By the time the Telecom 
    Act of 1996 was enacted in February 1996, the renewal cycle had already 
    begun for radio stations in several regions of the country. 
    Specifically, the licenses for radio stations in Maryland, the District 
    of Columbia, Virginia, West Virginia, North Carolina, and South 
    Carolina have either already been renewed under the previous license 
    term guidelines, or are still pending. Similarly, renewal applications 
    for radio stations in Florida, Puerto Rico, the Virgin Islands, 
    Alabama, Georgia, Arkansas, Louisiana, and Mississippi were already on 
    file with the Commission at the time the 1996 Act was enacted, and may 
    be ripe for grant before the conclusion of this proceeding. The 
    practical effect of this situation is that radio licenses that have 
    already been renewed for the current maximum allowable 7-year term will 
    have shorter terms than radio licenses renewed later in the renewal 
    cycle, which would become subject to the 8-year term we now adopt. When 
    the previously granted 7-year licenses expire the radio renewal process 
    will no longer be synchronized. This may also be the case for some 
    television licenses given that the current television renewal cycle is 
    now underway.20
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        \20\ The first group of television licenses, which expired on 
    October 1, 1996, include the renewal applications for television 
    stations in Maryland, the District of Columbia, Virginia, and West 
    Virginia. In addition, license renewal applications for television 
    stations in North Carolina, South Carolina, Florida, Puerto Rico, 
    and the Virgin Islands, are currently on file, or will be on file 
    with the Commission, prior to the conclusion of this proceeding, and 
    at least some of these applications may be granted by that time. 
    Accordingly, the synchronization problems previously discussed in 
    the radio license context may also be a problem with some television 
    license renewals.
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        21. NAB, NBC, ABC/Capital Cities, and ALTV all agree that 
    maintaining the synchronization of the renewal process is crucial and 
    should be facilitated by Commission rule.21 NAB states that 
    synchronization allows the Commission to predict its staffing needs 
    with greater precision and is convenient for the public since all 
    stations serving a market will generally come up for renewal at the 
    same time. NAB further states that if the Commission has determined 
    that the public interest would be served by granting a renewal, a one-
    year extension of the license term would not raise any additional 
    public interest question.22 NBC states that if this proceeding is 
    still pending when the television renewal cycle begins, the Commission 
    should adopt the same plan it has proposed for radio license and by 
    rule extend previously granted television licenses to 8-year 
    terms.23
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        \21\ NAB Comments at 3; NBC Comments at 3-4; Capital Cities/ABC 
    Reply Comments at 2; ALTV Reply Comments at 5-6.
        \22\ NAB Comments at 2-3.
        \23\ NBC Comments at 3-4.
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        22. We agree with these commenters, and believe that maintaining 
    the predictability, administrative efficiencies, and fairness inherent 
    in the existing synchronized schedule of renewal cycles would serve the 
    public interest. We therefore adopt, as proposed in the NPRM, an 8-year 
    license term, to be implemented as follows. For broadcast renewal 
    applications granted after the effective date of a decision in this 
    proceeding, we will ordinarily grant the renewed license for the 
    maximum proposed term of 8 years.24 For renewal applications that 
    have been filed as part of the current renewal cycle (e.g., the cycle 
    beginning October 1, 1995 for radio stations, and October 1, 1996 for 
    television stations) and that have been granted only the maximum 7-year 
    or 5-year license term provided under our current rules because they 
    were processed prior to a decision in this proceeding, we will extend 
    the already renewed 7-year or 5-year license term for such stations to 
    the proposed 8-year term. We consequently direct the staff to modify 
    the terms of such licenses to afford these licensees the newly 
    authorized 8-year term and to ensure synchronization of such licenses 
    with future renewal cycles. The Commission adopted a similar approach 
    in 1983 when it extended existing common carrier and satellite licenses 
    from 5 to 10 years.25 As noted in that decision, the Commission's 
    authority to modify the provisions of existing licenses by rule making 
    had been upheld on several occasions.26 We believe that this 
    approach is consistent with the discretion we are given by the Telecom 
    Act to prescribe rules governing the period or periods for which 
    licenses are granted for particular classes of stations.
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        \24\ We will, as required by the Telecom Act, reserve the right 
    to grant renewals in particular cases for less than the maximum term 
    if the public interest would be served by such action.
        \25\ See Report and Order in CC Docket No. 83-371, 53 R.R. 2d 
    1514 (1983).
        \26\ See, e.g., Committee For Effective Cellular Rules v. FCC, 
    53 F.3d 1309 (D.C. Cir. 1995); WBEN, Inc., v. FCC, 396 F.2d 601 (2d 
    Cir.), cert. denied, 393 U.S. 914 (1968); see also National 
    Broadcasting Co. v. United States, 319 U.S. 190 (1943); California 
    Citizens Band Association v. United States, 375 F.2d 43 (9th Cir. 
    1967), cert. denied, 389 U.S. 844 (1967).
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    IV. Paperwork Reduction Act of 1995 Analysis
    
        23. The decision herein has been analyzed with respect to the 
    Paperwork Reduction Act of 1995, Public Law 104-13, and found to impose 
    or propose no modified information collection requirement on the 
    public.
    
    V. Final Regulatory Flexibility Analysis
    
        24. As required by Section 603 of the Regulatory Flexibility Act, 5 
    U.S.C. 603 (RFA), an Initial Regulatory Flexibility Analysis (``IRFA'') 
    was incorporated in Implementation of Section 203 of The 
    Telecommunications Act of 1996 (Broadcast License Terms) Sections 
    73.1020 and 74.15, Notice of Proposed Rule Making in MM Docket No. 96-
    90 (``NPRM'').27 The Commission sought written public comments on 
    the proposals in the NPRM including on the IRFA. The Commission's Final 
    Regulatory Flexibility Analysis (``FRFA'') in this Report and Order 
    conforms to the RFA, as amended by the Contract With America 
    Advancement Act of 1996, Public Law 104-121, 110 Stat. 847 (1996) 
    (``CWAAA'').28
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        \27\ Notice of Proposed Rule Making in MM Docket No. 96-90 
    (Released April 12, 1996).
        \28\ Subtitle II of CWAAA is The Small Business Regulatory 
    Enforcement Fairness Act of 1996 (SBREFA), codified at 5 U.S.C. 601 
    et seq.
    ---------------------------------------------------------------------------
    
    A. Need For and Objectives of Action 25
    
        25. On February 8, 1996, President Clinton signed into law the 
    Telecommunications Act of 1996 (``Telecom Act''). Section 203 of the 
    Telecom Act modifies the previous statutory provisions contained in 47 
    U.S.C. 307(c) regarding license terms for broadcast stations in two 
    principal ways. First, it eliminates the statutory distinction between 
    the maximum allowable license terms for television stations and radio 
    stations. Second, Section 203 provides that such licenses may be for 
    terms ``not to exceed 8 years,'' thus increasing the previous statutory 
    maximum terms of 5 years for
    
    [[Page 5344]]
    
    television stations and 7 years for radio stations. The purpose of this 
    Report and Order is to amend the Commission's Rules to conform to the 
    provision of Section 203 of the Telecom Act.
    
    B. Significant Issues Raised by the Public in Response to the Initial 
    Analysis
    
        26. No comments were received specifically in response to the IRFA 
    contained in the NPRM. However, commenters generally addressed the 
    effects of the proposed rules on broadcast stations. Most commenters, 
    including the National Association of Broadcasters (``NAB''), National 
    Broadcasting Company (``NBC''), Association of Local Television 
    Stations, Inc. (``ALTV''), and Capital Cities/ABC, Inc. (``Capital 
    Cities/ABC''), supported the proposed rules, believing that longer 
    license terms for both radio and television broadcast stations would 
    reduce the administrative burden on broadcast licensees. The Media 
    Access Project and the Center for Media Education (``MAP/CME'') opposed 
    the proposed rules and supported the creation of additional regulatory 
    requirements on broadcast licensees as a prerequisite to allowing 
    longer broadcast license terms. As discussed in Section V of this FRFA, 
    we have addressed these concerns.
    
    C. Description and Number of Small Entities To Which the Rule Will 
    Apply
    
    i. Definition of a ``Small Business''
        27. Under the RFA, small entities may include small organizations, 
    small businesses, and small governmental jurisdictions. 5 U.S.C. 
    601(6). The RFA, 5 U.S.C. 601(3), generally defines the term ``small 
    business'' as having the same meaning as the term ``small business 
    concern'' under the Small Business Act, 15 U.S.C. 632. A small business 
    concern is one which: (1) Is independently owned and operated; (2) is 
    not dominant in its field of operation; and (3) satisfies any 
    additional criteria established by the Small Business Administration 
    (``SBA''). According to the SBA's regulations, entities engaged in 
    television broadcasting Standard Industrial Classification (``SIC'') 
    Code 4833--Television Broadcasting Stations, may have a maximum of 
    $10.5 million in annual receipts in order to qualify as a small 
    business concern. 29 Similarly, entities engaged in radio 
    broadcasting, SIC Code 4832--Radio Broadcasting Stations, have a 
    maximum of $5 million in annual receipts to qualify as a small business 
    concern. 13 CFR 121.101 et seq. This standard also applies in 
    determining whether an entity is a small business for purposes of the 
    RFA.
    ---------------------------------------------------------------------------
    
        \29\  This revenue cap appears to apply to noncommercial 
    educational television stations, as well as to commercial television 
    stations. See Executive Office of the President, Office of 
    Management and Budget, Standard Industrial Classification Manual 
    (1987), at 283, which describes ``Television Broadcasting Stations 
    (SIC Code 4833) as:
        Establishments primarily engaged in broadcasting visual programs 
    by television to the public, except cable and other pay television 
    services. Included in this industry are commercial, religious, 
    educational and other television stations. Also included here are 
    establishments primarily engaged in television broadcasting and 
    which produce taped television program materials.
    ---------------------------------------------------------------------------
    
        28. Pursuant to 5 U.S.C. 601(3), the statutory definition of a 
    small business applies ``unless an agency after consultation with the 
    Office of Advocacy of the SBA and after opportunity for public comment, 
    establishes one or more definitions of such term which are appropriate 
    to the activities of the agency and publishes such definition(s) in the 
    Federal Register.'' While we tentatively believe that the foregoing 
    definition of ``small business'' greatly overstates the number of radio 
    and television broadcast stations that are small businesses and is not 
    suitable for purposes of determining the impact of the new rules on 
    small television radio stations, and auxiliary services, we did not 
    propose an alternative definition in the IRFA.30 Accordingly, for 
    purposes of this Report and Order, we utilize the SBA's definition in 
    determining the number of small businesses to which the rules apply, 
    but we reserve the right to adopt a more suitable definition of ``small 
    business'' as applied to radio and television broadcast stations and to 
    consider further the issue of the number of small entities that are 
    radio and television broadcasters in the future. Further, in this FRFA, 
    we will identify the different classes of small radio and television 
    stations that may be impacted by the rules adopted in this Report and 
    Order.
    ---------------------------------------------------------------------------
    
        \30\ We have pending proceedings seeking comment on the 
    definition of and data relating to small businesses. In our Notice 
    of Inquiry in GN Docket No. 96-113 (In the Matter of Section 257 
    Proceeding to Identify and Eliminate Market Entry Barriers for Small 
    Businesses), FCC 96-216, released May 21, 1996, we requested 
    commenters to provide profile data about small telecommunications 
    businesses in particular services, including television, and the 
    market entry barriers they encounter, and we also sought comment as 
    to how to define small businesses for purposes of implementing 
    Section 257 of the Telecommunications Act of 1996, which requires us 
    to identify market entry barriers and to prescribe regulations to 
    eliminate those barriers. The comment and reply comment deadlines in 
    that proceeding have not yet elapsed. Additionally, in our Order and 
    Notice of Proposed Rule Making in MM Docket No. 96-16 (In the Matter 
    of Streamlining Broadcast EEO Rule and Policies, Vacating the EEO 
    Forfeiture Policy Statement and Amending Section 1.80 of the 
    Commission's Rules to Include EEO Forfeiture Guidelines), 11 FCC Rcd 
    5154 (1996), we invited comment as to whether relief should be 
    afforded to stations: (1) Based on small staff and what size staff 
    would be considered sufficient for relief, e.g., 10 or fewer full-
    time employees; (2) based on operation in a small market; or (3) 
    based on operation in a market with a small minority work force. We 
    have not concluded the foregoing rule making.
    ---------------------------------------------------------------------------
    
    ii. Issues in Applying the Definition of a ``Small Business''
        29. As discussed below, we could not precisely apply the foregoing 
    definition of ``small business'' in developing our estimates of the 
    number of small entities to which the rules will apply. Our estimates 
    reflect our best judgments based on the data available to us.
        30. An element of the definition of ``small business'' is that the 
    entity not be dominant in its field of operation. We were unable at 
    this time to define or quantify the criteria that would establish 
    whether a specific television station is dominant in its field of 
    operation. Accordingly, the following estimates of small businesses to 
    which the new rules will apply do not exclude any television station 
    from the definition of a small business on this basis and are therefore 
    overinclusive to that extent. An additional element of the definition 
    of ``small business'' is that the entity must be independently owned 
    and operated. We attempted to factor in this element by looking at 
    revenue statistics for owners of television stations. However, as 
    discussed further below, we could not fully apply this criterion, and 
    our estimates of small businesses to which the rules may apply may be 
    overinclusive to this extent. The SBA's general size standards are 
    developed taking into account these two statutory criteria. This does 
    not preclude us from taking these factors into account in making our 
    estimates of the numbers of small entities.
        31. With respect to applying the revenue cap, the SBA has defined 
    ``annual receipts'' specifically in 13 CFR 121.104, and its 
    calculations include an averaging process. We do not currently require 
    submission of financial data from licensees that we could use in 
    applying the SBA's definition of a small business. Thus, for purposes 
    of estimating the number of small entities to which the rules apply, we 
    are limited to considering the revenue data that are publicly 
    available, and the revenue data on which we rely may not correspond 
    completely with the SBA definition of annual receipts.
        32. Under SBA criteria for determining annual receipts, if a 
    concern has acquired an affiliate or been acquired as an affiliate 
    during the
    
    [[Page 5345]]
    
    applicable averaging period for determining annual receipts, the annual 
    receipts in determining size status include the receipts of both firms. 
    13 CFR 121.104(d)(1). The SBA defines affiliation in 13 CFR 121.103. In 
    this context, the SBA's definition of affiliate is analogous to our 
    attribution rules. Generally, under the SBA's definition, concerns are 
    affiliates of each other when one concern controls or has the power to 
    control the other, or a third party or parties controls or has the 
    power to control both. 13 CFR 121.103(a)(1). The SBA considers factors 
    such as ownership, management, previous relationships with or ties to 
    another concern, and contractual relationships, in determining whether 
    affiliation exists. 13 CFR 121.103(a)(2). Instead of making an 
    independent determination of whether radio and television stations were 
    affiliated based on SBA's definitions, we relied on the data bases 
    available to us to provide us with that information.
    iii. Estimates Based on Census Data
        33. The rules amended by this Report and Order will apply to full 
    service television and radio stations, FM and TV translator facilities, 
    low power TV stations (``LPTV''), television and radio auxiliary and 
    booster facilities, international broadcasting stations, television and 
    radio network auxiliary facilities, and video microwave facilities.
        34. There were 1,509 television stations operating in the nation in 
    1992.31 That number has remained fairly constant as indicated by 
    the approximately 1,550 operating television broadcasting stations in 
    the nation as of August, 1996.32 For 1992 33 the number of 
    television stations that produced less than $10.0 million in revenue 
    was 1,155 establishments.34
    ---------------------------------------------------------------------------
    
        \31\ FCC News Release No. 31327, Jan. 13, 1993; Economics and 
    Statistics Administration, Bureau of Census, U.S. Department of 
    Commerce, 1992 Census of Transportation, Communications and 
    Utilities, Establishment and Firm Size, Series UC92-S-1, Appendix A-
    9 (1995).
        \32\ FCC News Release No. 64958, Sept. 6, 1996.
        \33\ Census for communications establishments are performed 
    every five years ending with a ``2'' or ``7''. See Economics and 
    Statistics Administration, Bureau of Census, U.S. Department of 
    Commerce, supra note 31.
        \34\ The amount of $10 million was used to estimate the number 
    of small business establishments because the relevant Census 
    categories stopped a $9,999,999 and began at $10,000,000. No 
    category for $10.5 million existed. Thus, the number is as accurate 
    as it is possible to calculate with the available information.
    ---------------------------------------------------------------------------
    
        35. The rule changes will also affect radio stations. The SBA 
    defines a radio broadcasting station that has no more than $5 million 
    in annual receipts as a small business.35 A radio broadcasting 
    station is an establishment primarily engaged in broadcasting aural 
    programs by radio to the public.36 Included in this industry are 
    commercial religious, educational, and other radio stations.37 
    Radio broadcasting stations which primarily are engaged in radio 
    broadcasting and which produce radio program materials are similarly 
    included.38 However, radio stations which are separate 
    establishments and are primarily engaged in producing radio program 
    material are classified under another SIC number.39 The 1992 
    Census indicates that 96 percent (5,861 of 6,127) of radio station 
    establishments produced less than $5 million in revenue in 1992.40 
    Official Commission records indicate that 11,334 individual radio 
    stations were operating in 1992.41 As of December 1996, official 
    Commission records indicate that 12,140 radio stations are currently 
    operating.42
    ---------------------------------------------------------------------------
    
        \35\ 13 CFR 121.201, SIC 4832.
        \36\ Economics and Statistics Administration, Bureau of Census, 
    U.S. Department of Commerce, supra note 6, Appendix A-9.
        \37\ Id.
        \38\ Id.
        \39\ Id.
        \40\ The Census Bureau counts radio stations located at the same 
    facility as one establishment. Therefore, each co-located AM/FM 
    combination counts as one establishment.
        \41\ FCC News Release No. 31327, Jan. 13, 1993.
        \42\ FCC News Release, Broadcast Station Totals as of December 
    31, 1996.
    ---------------------------------------------------------------------------
    
        36. Thus, the rule changes will affect approximately 1,550 
    television stations, approximately 1,194 of which are considered small 
    businesses.43 Additionally, the rule changes will affect 12,140 
    radio stations, approximately 11,605 of which are small 
    businesses.44 These estimates may overstate the number of small 
    entities since the revenue figures on which they are based do not 
    include or aggregate revenues from non-television or non-radio 
    affiliated companies.
    ---------------------------------------------------------------------------
    
        \43\ We use the 77 percent figure of TV stations operating at 
    less than $10 million for 1992 and apply it to the 1996 total of 
    1,550 TV stations to arrive at 1,194 stations categorized as small 
    businesses.
        \44\ We use the 96% figure of radio station establishments with 
    less than $5 million revenue from the Census data and apply it to 
    the 12,088 individual station count to arrive at 11,605 individual 
    stations as small businesses.
    ---------------------------------------------------------------------------
    
        37. We recognize that the rule changes may also affect minority and 
    women-owned stations, some of which may be small entities. In 1995, 
    minorities owned and conrolled 37 (3.0%) of 1,221 commercial television 
    stations and 293 (2.9%) of the commercial radio stations in the United 
    States.45 According to the U.S. Bureau of the Census, in 1987 
    women owned and controlled 27 (1.9%) of 1,342 commercial and non-
    commercial television stations and 394 (3.8%) of 10,244 commercial and 
    non-commercial radio stations in the United States.46
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        \45\ Minority Commercial Broadcast Ownership in the United 
    States, U.S. Department of Commerce, National Telecommunications and 
    Information Administration, The Minority Telecommunications 
    Development Program (``MTDP'') (April 1996). MTDP considers minority 
    ownership as ownership of more than 50% of a broadcast corporation's 
    stock, voting control in a broadcast partnership, or ownership of a 
    broadcasting property as an individual proprietor. Id. The minority 
    groups included in this report are Black, Hispanic, Asian, and 
    Native American.
        \46\ See Comments of American Women in Radio and Television, 
    Inc. in MM Docket No 94-149 and MM Docket No. 91-140, at 4 n.4 
    (filed May 17, 1995), citing Economic Censuses, Women-Owned 
    Business, WB87-1, U.S. Department of Commerce, Bureau of the Census, 
    August 1990 (based on 1987 Cenus). After the 1987 Census report, the 
    Census Bureau did not provide data by particular communications 
    services (four-digit Standard Industrial Classification (SIC) Code), 
    but rather by the general two-digit SIC Code for communications 
    (#48). Consequently, since 1987, the U.S. Census Bureau has not 
    updated data on ownership of broadcast facilities by women, nor does 
    the FCC collect such data. However, we sought comment on whether the 
    Annual Ownership Report Form 323 should be amended to include 
    information on the gender and race of broadcast license owners. 
    Policies and Rules Regarding Minority and Female Ownership of Mass 
    Media Facilities, Notice of Proposed Rulemaking, 10 FCC Rcd 2788, 
    2797 (1995).
    ---------------------------------------------------------------------------
    
        38. The rule changes also affect radio translator and booster 
    stations, television translator stations, experimental radio stations 
    and television stations, and LPTV stations. The Commission has not 
    developed a definition of small entities applicable to radio or 
    television booster and translator stations, or experimental radio or 
    television stations. Therefore, the applicable definition of a small 
    entity is the definition under the SBA rules applicable to radio and 
    television stations. Under this definition, FM booster and translator 
    radio stations and experimental radio stations (SIC Code 4832) that 
    would qualify as small businesses would be those radio broadcasting 
    facilities with maximum revenues of $5 million. Similarly, under this 
    definition, television translator stations, television experimental 
    stations, and LPTV stations (SIC Code 4833) would be those television 
    broadcasting facilities with maximum revenues of $10.5 million.
        39. There are currently 2,720 FM translator and booster stations, 
    4,952 TV translator stations, and 1,954 LPTV stations which will be 
    affected by the new license term rules.47 Neither the FCC nor the 
    Department of Commerce collects financial information on these
    
    [[Page 5346]]
    
    broadcast facilities. We will assume for present purposes, however, 
    that most of these broadcast facilities, including LPTV stations, could 
    be classified as small businesses. As we indicated earlier, 96% of 
    radio stations and 78% of TV stations are designated as small 
    businesses. Given this situation, these stations would not likely have 
    revenues that exceed the SBA maximum to be designated as small 
    businesses.
    ---------------------------------------------------------------------------
    
        \47\ FCC news release, Broadcast Station Totals as of December 
    31, 1996.
    ---------------------------------------------------------------------------
    
        40. We have no compilation of data on how many experimental 
    stations are small entities. We will therefore assume that all are 
    small entities as defined by the SBA. We believe, however, that this 
    assumption greatly overstates the number of experimental stations that 
    are small businesses since some of the licensees of experimental 
    stations may have aggregate revenues that are above the revenue 
    definition of small businesses.
    iv. Alternative Classification of Small Stations
        41. An alternative way to classify small radio and television 
    stations is by the number of employees. The Commission currently 
    applies a standard based on the number of employees in administering 
    its Equal Employment Opportunity (``EEO'') rule for broadcasting.\48\ 
    Thus, radio or television stations with fewer than five full-time 
    employees are exempted from certain EEO reporting and recordkeeping 
    requirements.49 We estimate that the total number of broadcast 
    stations with 4 or fewer employees is 4,239.50
    ---------------------------------------------------------------------------
    
        \48\ The Commission's definition of a small broadcast station 
    for purposes of applying its EEO rule was adopted prior to the 
    requirement of approval by the Small Business Administration 
    pursuant to Section 3(a) of the Small Business Act, 15 U.S.C. 
    632(a), as amended by Section 222 of the Small Business Credit and 
    Business Opportunity Enhancement Act of 1992, Public Law 102-366, 
    sec. 222(b)(1), 106 Stat. 999 (1992), as further amended by the 
    Small Business Administration Reauthorization and Amendments Act of 
    1994, Public Law 103-403, sec. 301, 108 Stat. 4187 (1994). However, 
    this definition was adopted after public notice and an opportunity 
    for comment. See Report and Order in Docket No. 18244, 23 FCC 2d 430 
    (1970).
        \49\ See, e.g., 47 CFR 73.3612 (Requirement to file annual 
    employment reports on Form 395-B applies to licensees with five or 
    more full-time employees); First Report and Order in Docket No. 
    21474 (In the Matter of Amendment of Broadcast Equal Employment 
    Opportunity Rules and FCC Form 395), 70 FCC 2d 1466 (1979). The 
    Commission is currently considering how to decrease the 
    administrative burdens imposed by the EEO rule on small stations 
    while maintaining the effectiveness of our broadcast EEO 
    enforcement. Order and Notice of Proposed Rule Making in MM Docket 
    No. 96-16 (In the Matter of Streamlining Broadcast EEO Rule and 
    Policies, Vacating the EEO Forfeiture Policy Statement and Amending 
    Section 1.80 of the Commission's Rules to Include EEO Forfeiture 
    Guidelines), 11 FCC Rcd 5154 (1996). One option under consideration 
    is whether to define a small station for purposes of affording such 
    relief as one with ten or fewer full-time employees. Id. at para.21.
        \50\ We base this estimate on a compilation of 1994 Broadcast 
    Station Annual Employment Reports (FCC Form 395-B), performed by 
    staff of the Equal Opportunity Employment Branch, Mass Media Bureau, 
    FCC.
    ---------------------------------------------------------------------------
    
    D. Projected Compliance Requirements of the Rule
    
        42. This Report and Order imposes compliance with new license terms 
    for broadcast stations in accordance with the amended rules set forth 
    in the Report and Order. Compliance will be implemented as follows. For 
    broadcast renewal applications granted after the effective date of a 
    decision in this proceeding, we will ordinarily grant the renewed 
    license for the maximum proposed term of 8 years.51 For renewal 
    applications that have been filed as part of the current renewal cycle 
    (e.g., the cycle beginning October 1, 1995 for radio stations, and 
    October 1, 1996 for television stations) and that have been granted 
    only the maximum 7-year or 5-year license term provided under our 
    current rules because they were processed prior to a decision in this 
    proceeding, we will extend the already renewed 7-year or 5-year license 
    term for such stations to the proposed 8-year term. We consequently 
    direct the staff to modify the terms of such licenses to afford these 
    licensees the newly authorized 8-year term and to ensure 
    synchronization of such licenses with future renewal cycles.
    ---------------------------------------------------------------------------
    
        \51\ We will, as required by the Telecom Act, reserve the right 
    to grant renewals in particular cases for less than the maximum term 
    if the public interest would be served by such action.
    ---------------------------------------------------------------------------
    
        43. The Report and Order imposes no new reporting or recordkeeping 
    requirements. To the contrary, broadcasters will have fewer filings to 
    make, since initial license terms will be for longer periods and 
    renewal filings will be made less frequently. These changes will result 
    in greater economic efficiency for broadcasters, especially those 
    classified as small entities, since administrative burdens on broadcast 
    licensees will be reduced.
    
    E. Significant Alternatives Considered Minimizing the Economic Impact 
    on Small Entities and Consistent With the Stated Objectives
    
        44. The action taken does not impose additional burdens on small 
    entities. To the contrary, it lessens burdens on both small and large 
    entities by lengthening broadcast license terms to the maximum extent 
    authorized by statute.
        45. MAP/CME opposes extending broadcast license terms to eight 
    years because of concerns about the potential effects of such an action 
    on the public interest obligations of broadcasters. MAP/CME believes 
    that longer license terms, together with the elimination of comparative 
    renewals, focus on the interests of broadcasters and will result in no 
    meaningful public review of broadcasters' performance. MAP/CME also 
    believes that the Commission should extend broadcast license terms to 
    the maximum 8-year period only if it adds quantitative programming 
    requirements as part of broadcasters' public interest 
    obligations.52
    ---------------------------------------------------------------------------
    
        \52\ See Paras. 8-11, supra.
    ---------------------------------------------------------------------------
    
        46. Like MAP/CME, we are concerned about the public interest 
    obligations of licensees. We are also cognizant of Congressional intent 
    to reduce regulatory burdens while at the same time providing for 
    meaningful review of licensee performance. In this Report and Order we 
    have addressed these public interest and regulatory concerns. On 
    balance, we find that the 8-year term would serve the public interest. 
    Accordingly, we amend our rules to provide that broadcast licenses 
    ordinarily have the maximum 8-year term authorized under the Telecom 
    Act. As stated in the NPRM, we believe this change in broadcast license 
    terms is consistent with the public interest since licensees will 
    continue to be subject to scrutiny by both the public and the 
    Commission. In keeping with this concern, we reiterate that Section 203 
    of the Telecom Act, as well as our revised rules, explicitly reserve 
    the Commission's authority to grant individual licenses for less than 
    the statutory maximum if the public interest, convenience, and 
    necessity would be served by such action.53
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        \53\ See1 Paras. 9-12, supra.
    ---------------------------------------------------------------------------
    
        47. Pursuant to the RFA, 5 U.S.C. 603(c), we have considered 
    whether there is a significant economic impact on a substantial number 
    of small entities. We conclude that there is no adverse economic impact 
    on such entities. To the contrary, extending broadcast license terms 
    would benefit small business entities (e.g., small radio stations, 
    auxiliary stations and LPTV stations), by reducing the administrative 
    burdens on such entities, thereby allowing them to operate more 
    efficiently in the competitive marketplace.
    
    F. Report to Congress
    
        48. The Commission shall send a copy of this Final Regulatory 
    Flexibility Analysis along with this Report and Order in a report to 
    Congress pursuant to the Small Business Regulatory Enforcement Fairness 
    Act of 1996,
    
    [[Page 5347]]
    
    codified at 5 U.S.C. 801(a)(1)(A). This FRFA is also published in this 
    Federal Register summary.
    
    Ordering Clauses
    
        49. Accordingly, it is ordered that, pursuant to the authority 
    contained in Sections 154, 303, and 307 of the Communications Act of 
    1934, as amended, 47 U.S.C. 154, 303, and 307, Sections 73.733, 
    73.1020, and 74.15 of the Commission's Rules, 47 CFR 73.733, 73.1020, 
    and 74.15, are amended as set forth in the Rule changes section of this 
    Federal Register summary.
        50. It is further ordered that the Commission staff take 
    appropriate administrative actions to extend broadcast licenses already 
    granted or renewed as part of the current renewal cycle (i.e., the 
    cycle beginning October 1, 1995 for radio stations and October 1, 1996 
    for television stations), for the previously allowable maximum terms, 
    to the new maximum 8-year term.
        51. It is further ordered that, pursuant to the Contract with 
    America Advancement Act of 1996, the amendment set forth in the 
    attachment to this summary shall be effective March 7, 1997.
        52. It is further ordered that the Secretary of the Commission 
    shall send this Report and Order to the Small Business Administration 
    for review.
        53. It is further ordered that this proceeding is terminated.
    
    List of Subjects
    
    47 CFR Part 73
    
        Radio broadcasting, Radio, Television broadcasting, Television.
    
    47 CFR Part 74
    
        Radio, Television.
    
    Federal Communications Commission.
    William F. Caton,
    Acting Secretary.
    
    Rule Changes
    
        Parts 73 and 74 of Title 47 of the Code of Federal Regulations are 
    amended as follows:
    
    PART 73--RADIO BROADCAST SERVICES
    
        1. The authority citation for Part 73 is revised to read as 
    follows:
    
        Authority: 47 U.S.C. 154, 303, and 307.
    
        2. Section 73.733 is revised to read as follows:
    
    
    Sec. 73.733  Normal license period.
    
        All international broadcast station licenses will be issued so as 
    to expire at the hour of 3 a.m. local time and will be issued for a 
    normal period of 8 years expiring November 1.
        3. Section 73.1020 is amended by revising the introductory text of 
    paragraph (a) to read as follows:
    
    
    Sec. 73.1020  Station license period.
    
        (a) Initial licenses for broadcast stations will ordinarily be 
    issued for a period running until the date specified in this section 
    for the State or Territory in which the station is located. If issued 
    after such date, it will run to the next renewal date determined in 
    accordance with this section. Both radio and TV broadcasting stations 
    will ordinarily be renewed for 8 years. However, if the FCC finds that 
    the public interest, convenience and necessity will be served thereby, 
    it may issue either an initial license or a renewal thereof for a 
    lesser term. The time of expiration of normally issued initial and 
    renewal licenses will be 3 a.m., local time, on the following dates and 
    thereafter at 8-year intervals for radio and TV broadcast stations 
    located in:
    * * * * *
    
    PART 74--EXPERIMENTAL RADIO, AUXILIARY, SPECIAL BROADCAST AND OTHER 
    PROGRAM DISTRIBUTIONAL SERVICES
    
        1. The authority citation for Part 74 is revised to read as 
    follows:
    
        Authority: 47 U.S.C. 154, 303, 307, and 554.
    
        2. Section 74.15 is amended by revising the introductory text of 
    paragraph (d) and paragraph (f) to read as follows:
    
    
    Sec. 74.15  Station license period.
    
    * * * * *
        (d) Initial licenses for low power TV, TV translator, and FM 
    translator stations will ordinarily be issued for a period running 
    until the date specified in Sec. 73.1020 of this chapter for full 
    service stations operating in their State or Territory, or if issued 
    after such date, to the next renewal date determined in accordance with 
    Sec. 73.1020 of this chapter. Lower power TV and TV translator station 
    and FM translator station licenses will ordinarily be renewed for 8 
    years. However, if the FCC finds that the public interest, convenience 
    or necessity will be served, it may issue either an initial license or 
    a renewal thereof for a lesser term. The FCC may also issue a license 
    renewal for a shorter term if requested by the applicant. The time of 
    expiration of all licenses will be 3 a.m. local time, on the following 
    dates, and thereafter to the schedule for full service stations in 
    their states as reflected in Sec. 73.1020 of this chapter:
    * * * * *
        (f) Licenses held by broadcast network-entities under Subpart F 
    will ordinarily be issued for a period of 8 years running concurrently 
    with the normal licensing period for broadcast stations located in the 
    same area of operation. An application for renewal of license (FCC Form 
    313-R) shall be filed not later than the first day of the fourth full 
    calendar month prior to the expiration date of the license sought to be 
    renewed. If the prescribed deadline falls on a nonbusiness day, the 
    cutoff shall be the close of business of the first full business day 
    thereafter.
    * * * * *
    [FR Doc. 97-2755 Filed 2-4-97; 8:45 am]
    BILLING CODE 6712-01-P
    
    
    

Document Information

Effective Date:
3/7/1997
Published:
02/05/1997
Department:
Federal Communications Commission
Entry Type:
Rule
Action:
Final rule.
Document Number:
97-2755
Dates:
The rule changes contained in this Report and Order will become effective March 7, 1997.
Pages:
5339-5347 (9 pages)
Docket Numbers:
MM Docket No. 96-90, FCC 97-17
PDF File:
97-2755.pdf
CFR: (4)
47 CFR 73.733
47 CFR 73.1020
47 CFR 73.1020
47 CFR 74.15