[Federal Register Volume 61, Number 52 (Friday, March 15, 1996)]
[Rules and Regulations]
[Pages 10691-10692]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-6206]
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FEDERAL COMMUNICATIONS COMMISSION
47 CFR Part 73
[FCC 96-91]
Implementation of Sections 202(c)(1) and 202(e) of the
Telecommunications Act of 1996 (National Broadcast Television Ownership
and Dual Network Operations)
AGENCY: Federal Communications Commission.
ACTION: Final rule.
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SUMMARY: On February 8, 1996, President Clinton signed into law the
Telecommunications Act of 1996 (Telecom Act).1 Section 202(c)(1)
of the Telecom Act directs the Commission to revise its Rules regarding
the national television station multiple ownership rules. Section
202(e) of the Telecom Act directs us to revise the Commission's Rules
with respect to dual networking operations. With this Order, we conform
our rules to these particular provisions of the Telecom Act.
\1\ Pub. L. 104-104, 110 Stat. 56 (1996).
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EFFECTIVE DATE: March 15, 1996.
FOR FURTHER INFORMATION CONTACT: Alan Aronowitz, Mass Media Bureau,
Policy and Rules Division, Legal Branch, (202) 418-2130, or via the
Internet at aaronowi@fcc.gov.
SUPPLEMENTARY INFORMATION: This is a summary of the Commission's Order,
FCC 96-91, adopted March 7, 1996 and released March 8, 1996. The full
text of this Commission decision is available for inspection and
copying during normal business hours in the FCC Dockets Branch (Room
239), 1919 M Street, NW., Washington, DC. The complete text of this
decision may also be purchased from the Commission's copy contractor,
International Transcription Services, (202) 857-3800, 2100 M Street,
NW., Suite 140, Washington, DC 20037.
Synopsis of Order
1. National Ownership Limitations. Currently,
Sec. 73.3555(e)(1)(ii) through (iii), (2) and (3) of the Commission's
Rules set forth the rules and operative definitions regarding national
ownership limitations applicable to commercial television stations. The
rule prohibits entities from having an attributable ownership or other
cognizable interest in more than 12 such stations, except that such an
interest in two additional stations is permitted, for a total of 14
stations, if these additional stations are minority-controlled. The
rule also prohibits an entity from having an attributable ownership or
other cognizable interest in a station if it would result in that
entity having such an interest in television stations with an aggregate
national audience reach exceeding 25 percent (an additional 5 percent
reach is permitted, for a total of 30 percent, if it is derived from
minority-controlled stations). For purposes of calculating this
aggregate audience reach under the rules, UHF stations are attributed
with only 50 percent of their audience reach (the ``UHF
discount''),2 and stations which are primarily satellite
operations are generally not counted (the ``satellite
exception'').3
\2\ 47 CFR 73.3555(e)(3)(i).
\3\ 47 CFR 73.3555(e)(3)(ii).
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2. Section 202(c)(1) of the Telecom Act directs the Commission to
``modify its rules for multiple ownership set forth in Sec. 73.3555 of
its regulations * * *.
(A) by eliminating the restrictions on the number of television
stations that a person or entity may directly or indirectly own,
operate, or control, or have a cognizable interest in, nationwide; and
(B) by increasing the national audience reach limitation for
television stations to 35 percent.''
Section 73.3555(e) of the Commission's Rules will be revised to reflect
the changes directed by section 202(c)(1) of the Telecom Act, as set
forth below.
3. The Telecom Act is silent with respect to the UHF discount and
the satellite station exception, both of which are incorporated in the
definition of ``national audience reach'' set forth in
Sec. 73.3555(e)(3). The UHF discount and satellite exception are
matters presently under consideration in the Commission's outstanding
proceeding reviewing its television broadcast ownership rules,4
and any rule modifications with respect to these matters will be
addressed, as appropriate, in that proceeding. In calculating the
national audience reach in the interim, therefore, the UHF discount and
the satellite exception, as set forth in our current rules, will
continue to apply. However, any entity which acquires stations during
this interim period and which complies with the 35 percent audience
reach limitation only by virtue of one or both of these two provisions
will be subject to the outcome in the pending television
[[Page 10692]]
ownership proceeding concerning these issues. We accordingly retain and
redesignate Sec. 73.3555(e)(3) (i) and (ii). The remainder of the
definitions set forth in paragraph (e)(3) (defining ``minority'' and
``minority-controlled'') will be removed to conform to the rule changes
mandated by the Telecom Act.
\4\ See TV Ownership Further Notice, 60 FR 6490 (February 2,
1995).
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4. Dual Network Operations. Section 73.658(g) of the Commission's
Rules, commonly known as the ``dual network'' rule, currently prohibits
television stations from affiliating with a network organization that
maintains more than one network of television stations unless the
networks are not operated simultaneously or unless there is no
substantial overlap in the territory served by the group of stations
comprising each such network. For purposes of the current rule, a
network organization is any entity that simultaneously broadcasts an
identical program to two or more interconnected stations.
5. Section 202(e) of the Telecom Act instructs the Commission to
``revise Section 73.658(g) of its regulations * * * to permit a
television broadcast station to affiliate with a person or entity that
maintains 2 or more networks of television broadcast stations unless
such dual or multiple networks are composed of--
(1) Two or more persons or entities that, on the date of enactment
of the Telecommunications Act of 1996, are `networks' as defined in
section 73.3613(a)(1) of the Commission's regulations [in essence, this
refers to the NBC, CBS, ABC, and Fox television networks] * * *; or
(2) any network described in paragraph 1 and an English-language
program distribution service that, on such date, provides 4 or more
hours of programming per week on a national basis pursuant to network
affiliation arrangements with local television broadcast stations in
markets reaching more than 75 percent of television homes (as measured
by a national ratings service) [in essence, this refers to the UPN or
WB television networks].''
Section 73.658(g) of the Commission's Rules will be modified to conform
to section 202(e) of the Telecom Act, as set forth below.
Administrative Matters
6. We are revising these rules without providing prior public
notice and an opportunity for comment because the rules being modified
are mandated by the applicable provisions of the Telecom Act. 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'').5 The rule changes adopted
in this Order do not involve discretionary action on the part of the
Commission. Rather, they simply implement provisions of the Telecom Act
that direct the Commission to revise its rules according to specific
terms set forth in the legislation.
\5\ 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'').
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Ordering Clause
7. Accordingly, IT IS ORDERED that pursuant to section 202(c)(1)
and 202(e) of the Telecommunications Act of 1996, and to section 4(i)
and 303(r) of the Communications Act of 1934, as amended, 47 U.S.C.
154(i), 303(r), part 73 of the Commission's Rules, 47 CFR part 73, is
amended as set forth below. The rules are effective upon publication of
this Order in the Federal Register.6
\6\ See id. at section 553(d) (rules that relieve a restriction
may be effective less than 30 days after publication in the Federal
Register).
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List of Subjects in 47 CFR Part 73
Radio broadcasting.
Federal Communications Commission.
William F. Caton,
Acting Secretary.
Rule Changes
Part 73 of title 47 of the Code of Federal Regulations is amended
as follows:
PART 73--RADIO BROADCAST SERVICES
1. The authority citation for part 73 continues to read as follows:
Authority: 47 U.S.C. 154, 303, 334.
2. Section 73.658(g) is revised to read as follows:
Sec. 73.658 Affiliation agreements and network program practices;
territorial exclusivity in non-network program arrangements.
* * * * *
(g) Dual network operation. A television broadcast station may
affiliate with a person or entity that maintains two or more networks
of television broadcast stations unless such dual or multiple networks
are composed of:
(1) Two or more persons or entities that, on February 8, 1996, were
``networks.'' For the purposes of this paragraph, the term network
means any person, entity, or corporation which offers an interconnected
program service on a regular basis for 15 or more hours per week to at
least 25 affiliated television licensees in 10 or more states; and/or
any person, entity, or corporation controlling, controlled by, or under
common control with such person, entity, or corporation; or
(2) Any network described in paragraph (g)(1) of this section and
an English-language program distribution service that, on February 8,
1996, provided four or more hours of programming per week on a national
basis pursuant to network affiliation arrangements with local
television broadcast stations in markets reaching more than 75 percent
of television homes (as measured by a national ratings service).
* * * * *
3. Section 73.3555(e) is revised to read as follows:
Sec. 73.3555 Multiple ownership.
* * * * *
(e)(1) National television multiple ownership rule. No license for
a commercial TV broadcast station shall be granted, transferred or
assigned to any party (including all parties under common control) if
the grant, transfer or assignment of such license would result in such
party or any of its stockholders, partners, members, officers or
directors, directly or indirectly, owning, operating or controlling, or
having a cognizable interest in TV stations which have an aggregate
national audience reach exceeding thirty-five (35) percent.
(2) For purposes of this paragraph (e):
(i) National audience reach means the total number of television
households in the Arbitron Area of Dominant Influence (ADI) markets in
which the relevant stations are located divided by the total national
television households as measured by ADI data at the time of a grant,
transfer or assignment of a license. For purposes of making this
calculation, UHF television stations shall be attributed with 50
percent of the television households in their ADI market. Where the
relevant application forms require a showing with respect to audience
reach and the application relates to an area where Arbitron ADI market
data are unavailable, then the applicant shall make a showing as to the
number of television households in its market. Upon such a showing, the
Commission shall make a determination as to the appropriate audience
reach to be attributed to the applicant.
(ii) TV broadcast station or TV station excludes stations which are
primarily satellite operations.
* * * * *
[FR Doc. 96-6206 Filed 3-14-96; 8:45 am]
BILLING CODE 6712-01-P
