[Federal Register: September 14, 2006 (Volume 71, Number 178)]
[Proposed Rules]
[Page 54253-54255]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr14se06-11]
[[Page 54253]]
=======================================================================
-----------------------------------------------------------------------
FEDERAL COMMUNICATIONS COMMISSION
47 CFR Part 73
[MB Docket No 06-121; MB Docket No 02-277; FCC 06-93]
2006 Quadrennial Regulatory Review; 2002 Biennial Regulatory
Review--Review of the Commission's Broadcast Ownership Rules
AGENCY: Federal Communications Commission.
ACTION: Proposed rule; correction.
-----------------------------------------------------------------------
SUMMARY: On August 9, 2006 the Commission published the Further Notice
of Proposed Rule Making which sought comment on how to address issues
raised by the U.S. Court of Appeals for the Third Circuit with respect
to rules, as adopted or revised in the 2002 Biennial Review of the
Commission's broadcast ownership rules. The Further Notice of Proposed
Rule Making also initiated the next quadrennial review of the broadcast
ownership rules. The Commission inadvertently omitted the Supplemental
Initial Regulatory Flexibility Analysis, which was part of the item
adopted by the Commission, in the Federal Register publication. This
document corrects the Federal Register as it appeared.
DATES: Comments on the Supplemental Initial Regulatory Flexibility
Analysis are due on or before September 22, 2006, and reply comments on
or before November 21, 2006.
ADDRESSES: You may submit comments, identified by MB Docket No 06-121
and/or MB Docket No 06-277, by any of the following methods:
Federal eRulemaking Portal: http://www.regulations.gov.
Follow the instructions for submitting comments.
Federal Communications Commission's Web site: http://www.fcc.gov/cgb/ecfs/.
Follow the instructions for submitting comments. E-mail: ecfs@fcc.gov. Include the following words in the
body of the message, ``get form.'' A sample form and directions will be
sent in response.
Mail: Commercial overnight mail (other than U.S. Postal
Service Express Mail and Priority Mail) must be sent to 9300 East
Hampton Drive, Capitol Heights, MD 20743. U.S. Postal Service first-
class, Express, and Priority mail should be addressed to 445 12th
Street, SW., Washington DC 20554.
People with Disabilities: Contact the FCC to request
reasonable accommodations (accessible format documents, sign language
interpreters, CART, etc.) by e-mail: FCC504@fcc.gov or phone: 202-418-
0530 or TTY: 202-418-0432.
For detailed instructions for submitting comments and additional
information on the rulemaking process, see the SUPPLEMENTARY
INFORMATION section of this document.
FOR FURTHER INFORMATION CONTACT: Mania Baghdadi, Industry Analysis
Division, Media Bureau, Federal Communications Commission, (202) 418-
2330.
SUPPLEMENTARY INFORMATION: Following is the Supplemental Initial
Regulatory Flexibility Act analysis to be associated with the Further
Notice of Proposed Rule Making that was published in the Federal
Register on August 9, 2006 (71 FR 45511).
Supplemental Initial Regulatory Flexibility Analysis. As required
by the Regulatory Flexibility Act (RFA), the Commission incorporated an
Initial Regulatory Flexibility Analysis (IRFA) in the Notice of
Proposed Rulemaking (NPRM), 67 FR 65751 (October 28, 2002), in MB
Docket No. 02-277. Additionally, the Commission has prepared this
Supplemental Initial Regulatory Flexibility Analysis (Supplemental
IRFA) of the possible significant economic impact on small entities of
the proposals in the Further Notice of Proposed Rulemaking (NPRM), 71
FR 45511, August 9, 2006. Written public comments are requested on this
Supplemental IRFA. Comments must be identified as responses to the
Supplemental IRFA and must be filed by the deadlines for comments on
the Further Notice. The Commission has sent a copy of the Further
Notice, including this Supplemental IRFA, to the Chief Counsel for
Advocacy of the Small Business Administration (SBA).
Need for, and Objectives of, the Proposed Rules. The NPRM invites
comment on how to address the issues raised by the opinion of the U.S.
Court of Appeals for the Third Circuit in Prometheus Radio Project v.
FCC, and, pursuant to section 202(h) of the Telecommunications Act of
1996, on whether the media ownership rules are ``necessary in the
public interest as the result of competition.'' In the Prometheus
Remand Order, the court affirmed some Commission decisions and remanded
others for further Commission justification or modification. This
Supplemental IRFA is issued due to the passage of time since the
release of the NPRM in this proceeding and in order to invite comment
on the effect on small entities of the proposals in the NPRM. We
particularly solicit comment from all small business entities,
including minority-owned and women-owned small businesses. We
especially solicit comment on whether, and if so, how, the particular
interests of these small businesses may be affected by the rules. The
NPRM discusses the local TV ownership rule, the local radio ownership
rule, Cross-Media Limits and the Dual Network rule; details the issues
raised in the Prometheus Order regarding the Commission's decision with
respect to each of these rules; and invites comment on how to address
those issues.
Legal Basis. This NPRM is adopted pursuant to sections 1, 2(a),
4(i), 303, 307, 309, 310, of the Communications Act of 1934, as
amended, 47 U.S.C. 151, 152(a), 154(i), 303, 307, 309, 310, and Section
202(h) of the Telecommunications Act of 1996.
Description and Estimate of the Number of Small Entities to Which
the Proposed Rules Will Apply. The RFA directs agencies to provide a
description of, and, where feasible, an estimate of the number of small
entities that may be affected by the proposed rules, if adopted. The
RFA defines the term ``small entity'' as having the same meaning as the
terms ``small business,'' ``small organization,'' and ``small
governmental entity'' under Section 3 of the Small Business Act. In
addition, the term ``small business'' has the same meaning as the term
``small business concern'' under the Small Business Act. 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 SBA.
Television Broadcasting. In this context, the application of the
statutory definition to television stations is of concern. The Small
Business Administration defines a television broadcasting station that
has no more than $13 million in annual receipts as a small business.
Business concerns included in this industry are those ``primarily
engaged in broadcasting images together with sound.'' According to
Commission staff review of the BIA Financial Network, Inc. Media Access
Pro Television Database as of June 6, 2005, about 852 (66 percent) of
the 1,286 commercial television stations in the United States have
revenues of $12 million or less. However, in assessing whether a
business entity qualifies as small under the above definition, business
control affiliations must be included. Our estimate, therefore, likely
overstates the number of small entities that might be affected by any
changes to the attribution rules, because the revenue figures on which
this estimate
[[Page 54254]]
is based do not include or aggregate revenues from affiliated
companies. In addition, an element of the definition of ``small
business'' is that the entity not be dominant in its field of
operation. The Commission is unable at this time and in this context to
define or quantify the criteria that would establish whether a specific
television station is dominant in its market of operation. Accordingly,
the foregoing estimate of small businesses to which the rules may apply
does not exclude any television stations from the definition of a small
business on this basis and is therefore over-inclusive to that extent.
An additional element of the definition of ``small business'' is that
the entity must be independently owned and operated. It is difficult at
times to assess these criteria in the context of media entities, and
our estimates of small businesses to which they apply may be over-
inclusive to this extent.
Radio Broadcasting. The Small Business Administration defines a
radio broadcasting entity that has $6.5 million or less in annual
receipts as a small business. Business concerns included in this
industry are those ``primarily engaged in broadcasting aural programs
by radio to the public.'' According to Commission staff review of the
BIA Financial Network, Inc. Media Access Radio Analyzer Database as of
June 6, 2005, about 10,425 (95 percent) of 11,000 commercial radio
stations in the United States have revenues of $6 million or less. We
note, however, that in assessing whether a business entity qualifies as
small under the above definition, business control affiliations must be
included. Our estimate, therefore, likely overstates the number of
small entities that might be affected by any changes to the ownership
rules, because the revenue figures on which this estimate is based do
not include or aggregate revenues from affiliated companies. In this
context, the application of the statutory definition to radio stations
is of concern. An element of the definition of ``small business'' is
that the entity not be dominant in its field of operation. We are
unable at this time and in this context to define or quantify the
criteria that would establish whether a specific radio station is
dominant in its field of operation. Accordingly, the foregoing estimate
of small businesses to which the rules may apply does not exclude any
radio station from the definition of a small business on this basis and
is therefore over-inclusive to that extent. An additional element of
the definition of ``small business'' is that the entity must be
independently owned and operated. We note that it is difficult at times
to assess these criteria in the context of media entities, and our
estimates of small businesses to which they apply may be over-inclusive
to this extent.
Daily Newspapers. The SBA has developed a small business size
standard for the census category of Newspaper Publishers; that size
standard is 500 or fewer employees. Census Bureau data for 2002 show
that there were 5,159 firms in this category that operated for the
entire year. Of this total, 5,065 firms had employment of 499 or fewer
employees, and an additional 42 firms had employment of 500 to 999
employees. Therefore, we estimate that the majority of Newspaper
Publishers are small entities that might be affected by our action.
Description of Projected Reporting, Recordkeeping and Other
Compliance Requirements. Depending on the rules adopted as a result of
this Notice of Proposed Rule Making, the Report and Order (R&O)
ultimately adopted in this proceeding may contain new or modified
information collections. We anticipate that none of the changes would
result in an increase to the reporting and recordkeeping requirements
of broadcast stations, newspapers, or applicants for licenses. As noted
above, we invite small business entities to comment in response to the
NPRM.
Steps Taken to Minimize Significant Economic Impact on Small
Entities and Significant Alternatives Considered. The RFA requires an
agency to describe any significant alternatives that it has considered
in reaching its proposed approach, which may include the following four
alternatives (among others): (1) The establishment of differing
compliance or reporting requirements or timetables that take into
account the resources available to small entities; (2) the
clarification, consolidation, or simplification of compliance or
reporting requirements under the rule for small entities; (3) the use
of performance, rather than design, standards; and (4) an exemption
from coverage of the rule, or any part thereof, for small entities. We
are directed under law to describe any alternatives we consider,
including alternatives not explicitly listed above. This NPRM initiates
the next quadrennial review of the media ownership rules and seeks
public comment on the issues raised by the Prometheus Remand Order.
Thus, it invites comment on how to address the court's decisions in the
Prometheus Remand Order with respect to the local TV ownership rule,
the local radio ownership rule, and the cross-media limits. In
addition, the NPRM asks for comment on whether the dual network rule
remains necessary in the public interest as a result of competition.
The NPRM also seeks comment on the minority ownership proposals made by
Minority Media and Telecommunications Council in comments in the 2002
biennial ownership proceeding. Parties' discussions of alternatives
that are in their submitted comments will be fully considered. We
especially encourage small entity comment.
Federal Rules that May Duplicate, Overlap, or Conflict with the
Commission's Proposals. None.
Comment Information. Pursuant to sections 1.415 and 1.419 of the
Commission's rules, 47 CFR 1.415, 1.419, interested parties may file
comments and reply comments on or before the dates indicated on the
first page of this document. Comments may be filed using: (1) The
Commission's Electronic Comment Filing System (ECFS), (2) the Federal
Government's eRulemaking Portal, or (3) by filing paper copies.
Electronic Filers: Comments may be filed electronically using the
Internet by accessing the ECFS: http://www.fcc.gov/cgb/ecfs/ or the Federal eRulemaking Portal: http://www.regulations.gov. Filers should
follow the instructions provided on the Web site for submitting
comments. Paper Filers: Parties who choose to file by paper must file
an original and four copies of each filing. If more than one docket or
rulemaking number appears in the caption of this proceeding, filers
must submit two additional copies for each additional docket or
rulemaking number. Filings can be sent by hand or messenger delivery,
by commercial overnight courier, or by first-class or overnight U.S.
Postal Service mail (although we continue to experience delays in
receiving U.S. Postal Service mail). All filings must be addressed to
the Commission's Secretary, Office of the Secretary, Federal
Communications Commission. The Commission's contractor will receive
hand-delivered or messenger-delivered paper filings for the
Commission's Secretary at 236 Massachusetts Avenue, NE., Suite 110,
Washington, DC 20002. The filing hours at this location are 8 a.m. to 7
p.m. All hand deliveries must be held together with rubber bands or
fasteners. Any envelopes must be disposed of before entering the
building. Commercial overnight mail (other than U.S. Postal Service
Express Mail and Priority Mail) must be sent to 9300 East Hampton
Drive, Capitol Heights, MD 20743. U.S. Postal Service first-class,
Express, and Priority mail should be addressed to 445
[[Page 54255]]
12th Street, SW., Washington DC 20554. People with Disabilities: To
request materials in accessible formats for people with disabilities
(Braille, large print, electronic files, audio format), send an e-mail
to fcc504@fcc.gov or call the Consumer & Governmental Affairs Bureau at
202-418-0530 (voice), 202-418-0432 (tty).
Federal Communications Commission.
Marlene H. Dortch,
Secretary.
[FR Doc. E6-15246 Filed 9-13-06; 8:45 am]
BILLING CODE 6712-01-P