Broadcast License Terms

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:

[[Page 5341]]

``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

[[Page 5342]]

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

[[Page 5343]]

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.

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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.

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\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.

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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.

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\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.

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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

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\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.

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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

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\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.

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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.

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\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.

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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).

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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.

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\47\ FCC news release, Broadcast Station Totals as of December

31, 1996.

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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

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\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.

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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.

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\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.

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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

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\52\ See Paras. 8-11, supra.

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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.

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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