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The Commission recently implemented the new twostep renewal process.  {M -See Implementation of Sections 204(a) and 204 (c) of the Telecommunications Act of 1996 (Broadcast License  {OP-Renewal Procedures), FCC No. 96172 (released April 12, 1996). f While we acknowledge MAP/CME's concerns, on balance,  xwe believe adopting the maximum terms provided by statute is in the public interest and is  xconsistent with Congressional intent. We do not intend that this action should affect licensees'  xcompliance with public interest obligations and our ability to monitor such compliance. Hence,  xwe remind broadcasters that their public interest responsibilities extend throughout the entire  X - x>license term.Q   yOo-ԍ 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  {O-children's programming reports with the Commission on an annual basis. Report and Order in MM Docket No. 9348, FCC 96335, at  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  {Oy-children's television rules. Id.Q Additionally, the public will continue to have the ability to scrutinize station  xperformance or to bring to the Commission's attention any shortcomings in performance by filing  x\petitions to deny and informal objections at renewal time. Likewise, the public's right to file  xMcomplaints with the Commission at any time during the license term is unaffected by longer  xlicense terms. To the extent MAP/CME believes it is necessary to revise license renewal  xstandards to provide a better measure to evaluate licensee performance in the absence of  Xb-comparative renewal challenges, that issue is not before us in this proceeding.K bn {O"-ԍ See also infra paragraph 10.K "K 0*$$33+"Ԍ  x9. MAP/CME also asserts that the Commission's rationale for extending license terms  ximproperly focuses on what best serves the interests of broadcasters, rather than on the best  X- xinterests of viewers and listeners.B  yOK-ԍ MAP/CME Comments at 35. B In addition, MAP/CME challenges NBC's assertions that  x\longer license terms will create more stability among broadcasters and result in more capital  xZinvestment in public service and innovative programming. MAP/CME asserts that NBC's claimed  x-public benefits are entirely hypothetical and that there is no evidence from past deregulation that  Xv- xZbroadcasters will invest additional money in improved programming.GvX yO -ԍ MAP/CME Reply Comments at 45.G As noted above, however,  xeliminating unnecessary regulatory burdens can allow the competitive marketplace to operate  xmore efficiently, which in turn can enhance the opportunity to further the public interest through  ximproved service delivered to the public. We believe Congress, in providing us authority to do  xso, made the same reasonable judgment that lengthening broadcast license terms is an appropriate  xderegulatory measure that would lead to public benefits. If, after some experience with the new  xj8year 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.   x10. Finally, MAP/CME argues the Commission should extend broadcast license terms  x\to the maximum 8year period only if it adds quantitative requirements for locallyoriginated  Xy- x-programming addressing community issues, news, and children's educational programming.^y yO-ԍ MAP/CME Comments at 24; MAP/CME Reply Comments at 2.^ As  xnoted above, see paragraph 8, we believe that MAP/CME's proposal is beyond the scope of this proceeding. x   x11. In sum, we find that the 8year term, on balance, would serve the public interest.  xAccordingly, we amend our rules to provide that broadcast licenses ordinarily have the maximum  X- xk8year term authorized under the Telecom Act. As stated in the NPRM, we believe that this  x>result will reduce the burden on broadcasters and is consistent with both past Commission  xpractice and the legislative history of the Telecom Act. We believe this change in broadcast  xlicense terms on balance is consistent with the public interest since licensees will continue to be  xsubject to scrutiny by both the public and the Commission. In keeping with this concern, we  xLreiterate that Section 203 of the Telecom Act, as well as our revised rules, explicitly reserve the  xCommission'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.  X"-  x12. Other  Classes of Broadcast Stations . Section 203 of the Telecom Act states in part:  x"the Commission may by rule prescribe the period or periods for which licenses shall be granted" x0*$$33["  xand renewed for particular classes of stations...." While this provision provides us authority to  xdesignate different license terms for particular classes of stations (provided that they do not  X- xexceed 8 years), we proposed in the NPRM to treat all but experimental broadcast stations uniformly.  X-  x13. As proposed in the NPRM, we will track the approach we take with fullservice  x[stations and adopt an 8year license term for FM and TV translator facilities and low power TV  xstations, as well as for international broadcasting stations. This approach is consistent with our  XL- xcurrent practice of treating these different classes of stations uniformly.L Y -ԍ See Report and Order in MM Docket No. 92168#Xx P{8XP#, #d P7 P#9 FCC Rcd 6504 (1994). We believe that each  xof these services will benefit from the stability and reduced administrative burden which will  xNresult from a longer license term. Because of the tentative nature and limited purpose of  xexperimental stations, however, it would not be appropriate to grant such stations longer license  xterms and they will continue to be licensed for oneyear terms. Commenters agreed with this  X -approach.E y {O-ԍ See NBC Comments at 3.E` `   }x14. We will also continue our practice, set forth in Sections 74.15(b) and (c) of our  xRules, of tying the license terms for auxiliary and booster facilities to the license terms of the  xZbroadcast stations with which they are associated. Our current practice of tying the license terms  xof all auxiliary and booster facilities with the main station license eases the administrative burden  xion both Commission staff and broadcast station licensees, who would otherwise need an intricate recordkeeping system to ensure that all licenses were renewed at the appropriate time.   x15. ABC/Capital Cities seeks clarification concerning auxiliary facilities used by  xtelevision and radio networks. ABC believes it would be preferable for all licenses of a given  xnetwork entity in the same state to come up for renewal at the same time to eliminate potential  xdiscrepancies that may exist under the current system. It requests that the Commission specify  xin Section 74.15(b) of the Commission's Rules that television network auxiliary licenses shall  xKhave terms running concurrently with television broadcast stations located in the same state, and  xthat radio network auxiliary licenses shall have terms running concurrently with radio broadcast  x-stations located in the same state. ABC/Capital Cities also urges that the renewal terms for video  xmicrowave licenses issued under Section 74.15(f) of the Commission's Rules run concurrently  xwith the terms of television network auxiliary licenses granted under Subparts D and H of Part  X$-74 of the Commission's Rules.J$  yO"-ԍ ABC/Capital Cities Comments at 4.J " 0*$$33["Ԍ  @x16. We agree with the ABC/Capital Cities proposals concerning television and radio  x.network auxiliary licenses and video microwave licenses. We believe that these proposals are  X- xconsistent with both the Telecom Act and the NPRM and would simplify the license renewal  x-process and eliminate potential confusion about renewal dates by treating these different classes  x[of broadcast licenses uniformly. Accordingly, network auxiliary stations and video microwave  xlicenses will generally be linked to the license terms of fullservice broadcast stations in the same  Xx-state, and will ordinarily be granted for a term of 8 years.@x yO-ԍ 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 8year 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 fullservice broadcast stations in the same state and share the same 8year 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 fullservice broadcast stations for a particular state.  XJ-  ?x17.  Implementation of Amended License Term Provisions.  Section 203 of the  xTelecom 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.  X -  x18. As we noted in the NPRM the implementation issue is important because of the  x>logistics involved in renewing broadcast licenses. Under Sections 73.1020 and 74.15 of the  xCommission's Rules, all of the licenses for a particular class of broadcast stations expire at fixed  x intervals over a 3year period. To stagger the processing of renewal applications and thus  x=perform this task more efficiently, the country is divided into 18 different regions containing 1  xor more states for purposes of establishing synchronized schedules for radio and television license  xrenewals. The radio renewal schedule and the television renewal schedule operate on separate and  xdistinct cycles that do not run concurrently. Accordingly, once all radio licenses have been  xrenewed as scheduled, there is a 50month hiatus before the radio renewal cycle begins again.  x-Similarly, once all television licenses have been renewed as scheduled, there is a 26month hiatus before the television renewal cycle begins again. x   x19. Because of the cyclical nature of this process, any change in the length of the license  xterm implemented in the middle of a renewal cycle could undermine the synchronization of the  xwhole renewal process. In 1981, when Congress last amended the length of broadcast license  xkterms, two factors allowed us to avoid any such synchronization problems. First, under the  xstatute in effect at that time, both radio and television licenses had 3year maximum terms and  xthe renewal cycles for radio and television ran concurrently. Furthermore, the renewal cycles for  xLboth radio and television had not yet begun when the rules implementing the amended statute  xtook effect. Accordingly, pursuant to the explicit Congressional mandate contained in the";0*$$33]"  x=amended statute, Pub. L. No. 9735, 95 Stat. 357, 736 (1981), the Commission applied the longer  X- xZlicense terms prospectively as stations came up for renewal following the legislation's enactment.   X- xkSee Order, Amendment of Section 73.1020 of the Commission's Rules, 88 F.C.C. 2d 355, 356 (1981).   lx20. There is, however, a significant difference between the renewal situation in 1981 and  xthe current situation. By the time the Telecom Act of 1996 was enacted in February 1996, the  xKrenewal cycle had already begun for radio stations in several regions of the country. Specifically,  xzthe licenses for radio stations in Maryland, the District of Columbia, Virginia, West Virginia,  xNorth Carolina, and South Carolina have either already been renewed under the previous license  xterm guidelines, or are still pending. Similarly, renewal applications for radio stations in Florida,  xPuerto Rico, the Virgin Islands, Alabama, Georgia, Arkansas, Louisiana, and Mississippi were  xalready on file with the Commission at the time the 1996 Act was enacted, and may be ripe for  xgrant before the conclusion of this proceeding. The practical effect of this situation is that radio  xlicenses that have already been renewed for the current maximum allowable 7year term will have  x-shorter terms than radio licenses renewed later in the renewal cycle, which would become subject  xyto the 8year term we now adopt. When the previously granted 7year licenses expire the radio  xjrenewal process will no longer be synchronized. This may also be the case for some television  Xd-licenses given that the current television renewal cycle is now underway.xd yO-ԍ 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.    x21. NAB, NBC, ABC/Capital Cities, and ALTV all agree that maintaining the  X- xsynchronization of the renewal process is crucial and should be facilitated by Commission rule. yO-ԍ NAB Comments at 3; NBC Comments at 34; Capital Cities/ABC Reply Comments at 2; ALTV Reply Comments at 56.  x-NAB states that synchronization allows the Commission to predict its staffing needs with greater  xprecision and is convenient for the public since all stations serving a market will generally come  xup for renewal at the same time. NAB further states that if the Commission has determined that  xthe public interest would be served by granting a renewal, a oneyear extension of the license  X- x-term would not raise any additional public interest question.=`  yO"-ԍ NAB Comments at 23.= NBC states that if this proceeding  xKis still pending when the television renewal cycle begins, the Commission should adopt the same" 0*$$33"  xyplan it has proposed for radio license and by rule extend previously granted television licenses  X-to 8year terms.= yOb-ԍ NBC Comments at 34.=   Ox22. We agree with these commenters, and believe that maintaining the predictability,  xKadministrative efficiencies, and fairness inherent in the existing synchronized schedule of renewal  X- xcycles would serve the public interest. We therefore adopt, as proposed in the NPRM, an 8year  Xx- xlicense term, to be implemented as follows. For broadcast renewal applications granted after the  xeffective date of a decision in this proceeding, we will ordinarily grant the renewed license for  XL- x=the maximum proposed term of 8 years.LX yOU -ԍ 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. For renewal applications that have been filed as part  X5- xof the current renewal cycle (e.g., the cycle beginning October 1, 1995 for radio stations, and  xjOctober 1, 1996 for television stations) and that have been granted only the maximum 7year or  X - x5year license term provided under our current rules because they were processed prior to a  xdecision in this proceeding, we will extend the already renewed 7year or 5year license term for  xsuch stations to the proposed 8year term. We consequently direct the staff to modify the terms  xof such licenses to afford these licensees the newly authorized 8year term and to ensure  xsynchronization of such licenses with future renewal cycles. The Commission adopted a similar  xapproach in 1983 when it extended existing common carrier and satellite licenses from 5 to 10  X- x/years.t {O-ԍ See Report and Order in CC Docket No. 83371, 53 R.R. 2d 1514 (1983).t As noted in that decision, the Commission's authority to modify the provisions of  Xj- x[existing licenses by rule making had been upheld on several occasions.(jB {O]-ԍ See, e.g., Committee For Effective Cellular Rules v. FCC, 53 F.3d 1309 (D.C. Cir. 1995); WBEN, Inc., v.  {O'-FCC, 396 F.2d 601 (2d Cir.), cert. denied, 393 U.S. 914 (1968); see also National Broadcasting Co. v. United  {O-States, 319 U.S. 190 (1943); California Citizens Band Association v. United States, 375 F.2d 43 (9th Cir. 1967),  {O-cert. denied, 389 U.S. 844 (1967).   We believe that this  xapproach 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.  X%-  X-Paperwork Reduction Act of 1995 Analysis   {x23. The decision herein has been analyzed with respect to the Paperwork Reduction Act  xjof 1995, Pub. L. No. 10413, and found to impose or propose no modified information collection requirement on the public.  X-Ordering Clauses" 2 0*$$33"Ԍ  nԙx24. ACCORDINGLY, IT IS ORDERED that, pursuant to the authority contained in  xSections 154, 303, and 307 of the Communications Act of 1934, as amended, 47 U.S.C.  154,  x]303, and 307, Sections 73.733, 73.1020, and 74.15 of the Commission's Rules, 47 C.F.R.  73.733, 73.1020, AND 74.15, ARE AMENDED as set forth in Appendix C.  X-   x25. IT IS FURTHER ORDERED that the Commission staff take appropriate  xadministrative actions to extend broadcast licenses already granted or renewed as part of the  X_- xcurrent renewal cycle (i.e., the cycle beginning October 1, 1995 for radio stations and October  XJ- x1, 1996 for television stations), for the previously allowable maximum terms, to the new maximum 8year term.   px26. IT IS FURTHER ORDERED that, pursuant to the Contract with America  x Advancement Act of 1996, the amendment set forth in Appendix C SHALL BE EFFECTIVE  X - x\either 30 days after publication in the Federal Register or upon the receipt by Congress of a  xMreport in compliance with the Contract with America Advancement Act of 1996, Pub. L. No. 104121, whichever is later.   x27. IT IS FURTHER ORDERED that the Secretary of the Commission shall send this  Xd-Report and Order to the Small Business Administration for review. x28. IT IS FURTHER ORDERED that this proceeding IS TERMINATED.  X -  x29. Additional Information. For additional information regarding this proceeding, please contact Robert B. Somers, Mass Media Bureau, Policy and Rules Division, (202) 4182130. x` `  hhFEDERAL COMMUNICATIONS COMMISSION x` `  hhWilliam F. Caton x` `  hhActing Secretary"R 0*$$33^"  X-) APPENDIX A  X-  X- Final Regulatory Flexibility Analysis ă  x\As required by Section 603 of the Regulatory Flexibility Act, 5 U.S.C.  603 (RFA), an Initial  Xv- xRegulatory Flexibility Analysis ("IRFA") was incorporated in Implementation of Section 203 of  Xa- xThe Telecommunications Act of 1996 (Broadcast License Terms) Sections 73.1020 and 74.15,  XL- xNotice of Proposed Rule Making in MM Docket No. 9690 ("NPRM"')L yO -Ѝ Notice of Proposed Rule Making in MM Docket No. 9690 (Released April 12, 1996). The Commission sought  X7- x1written public comments on the proposals in the NPRM including on the IRFA. The  X" - xCommission's Final Regulatory Flexibility Analysis ("FRFA") in this Report and Order conforms  xto the RFA, as amended by the Contract With America Advancement Act of 1996, P.L. No. 104 X -121, 110 Stat. 847 (1996) ("CWAAA"). X yO- x[Ѝ Subtitle II of CWAAA is The Small Business Regulatory Enforcement Fairness Act of 1996 (SBREFA), codified at 5 U.S.C.  601 et seq.  X - I. Need For and Objectives of Action:  X-   xOn February 8, 1996, President Clinton signed into law the Telecommunications Act of  x1996 ("Telecom Act"). Section 203 of the Telecom Act modifies the previous statutory  xprovisions contained in 47 U.S.C.  307(c) regarding license terms for broadcast stations in two  xMprincipal ways. First, it eliminates the statutory distinction between the maximum allowable  xlicense terms for television stations and radio stations. Second, Section 203 provides that such  xlicenses may be for terms "not to exceed 8 years," thus increasing the previous statutory  xymaximum terms of 5 years for television stations and 7 years for radio stations. The purpose of  X- xthis Report and Order is amend the Commission's Rules to conform to the provision of Section 203 of the Telecom Act.  X- II. Significant Issues Raised by the Public in Response to the Initial Analysis:  X- x No comments were received specifically in response to the IRFA contained in the NPRM.  xHowever, commenters generally addressed the effects of the proposed rules on broadcast stations.  xMost commenters, including the National Association of Broadcasters ("NAB"), National  xBroadcasting Company ("NBC"), Association of Local Television Stations, Inc. ("ALTV"), and  xCapital Cities/ABC, Inc. ("Capital Cities/ABC"), supported the proposed rules, believing that  xlonger license terms for both radio and television broadcast stations would reduce the  xadministrative burden on broadcast licensees. The Media Access Project and the Center for" 0*$$33"  xMedia Education ("MAP/CME") opposed the proposed rules and supported the creation of  xadditional regulatory requirements on broadcast licensees as a prerequisite to allowing longer  xzbroadcast license terms. As discussed in Section V of this FRFA, we have addressed these concerns.  X- III. Description and Number of Small Entities To Which the Rule Will Apply: 1. Definition of a "Small Business"   ^xUnder the RFA, small entities may include small organizations, small businesses, and  xsmall governmental jurisdictions. 5 U.S.C.  601(6). The RFA, 5 U.S.C.  601(3), generally  xdefines the term "small business" as having the same meaning as the term "small business  xconcern" under the Small Business Act, 15 U.S.C.  632. A small business concern is one  xwhich: (1) is independently owned and operated; (2) is not dominant in its field of operation; and  x(3) satisfies any additional criteria established by the Small Business Administration ("SBA").  X - xAccording to the SBA's regulations, entities engaged in television broadcasting Standard  xMIndustrial Classification ("SIC") Code 4833 Television Broadcasting Stations, may have a  Xy- xmaximum of $10.5 million in annual receipts in order to qualify as a small business concern.y yO-ԍ This revenue cap appears to apply to noncommercial educational television stations, as well as to  yO-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: XxEstablishments 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.   xSimilarly, entities engaged in radio broadcasting, SIC Code 4832 Radio Broadcasting Stations,  xhave a maximum of $5 million in annual receipts to qualify as a small business concern. 13  X4- x[C.F.R.  121.101 et seq. This standard also applies in determining whether an entity is a small business for purposes of the RFA.   xPursuant to 5 U.S.C.  601(3), the statutory definition of a small business applies "unless  xyan agency after consultation with the Office of Advocacy of the SBA and after opportunity for  xpublic comment, establishes one or more definitions of such term which are appropriate to the  xzactivities of the agency and publishes such definition(s) in the Federal Register." While we  xxtentatively believe that the foregoing definition of "small business" greatly overstates the number  xof radio and television broadcast stations that are small businesses and is not suitable for purposes  xof determining the impact of the new rules on small television radio stations, and auxiliary"e ` 0*$$33"  X- xservices, we did not propose an alternative definition in the IRFA.e  yOy-ԍ We have pending proceedings seeking comment on the definition of and data relating to small businesses.  yOA-In our Notice of Inquiry in GN Docket No. 96113 (In the Matter of Section 257 Proceeding to Identify and Eliminate Market Entry Barriers for Small Businesses), FCC 96216, 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  yO-comment deadlines in that proceeding have not yet elapsed. Additionally, in our Order and Notice of Proposed  yO-Rule Making in MM Docket No. 9616 (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  yO -afforded to stations: (1) based on small staff and what size staff would be considered sufficient for relief, e.g., 10 or fewer fulltime 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. e Accordingly, for purposes  X- x of this Report and Order, we utilize the SBA's definition in determining the number of small  xbusinesses to which the rules apply, but we reserve the right to adopt a more suitable definition  xof "small business" as applied to radio and television broadcast stations and to consider further  xthe issue of the number of small entities that are radio and television broadcasters in the future.  xFurther, in this FRFA, we will identify the different classes of small radio and television stations  Xv-that may be impacted by the rules adopted in this Report and Order. x 2. Issues in Applying the Definition of a "Small Business"   "xAs discussed below, we could not precisely apply the foregoing definition of "small  xzbusiness" 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.   ?xAn element of the definition of "small business" is that the entity not be dominant in its  xfield of operation. We were unable at this time to define or quantify the criteria that would  xestablish whether a specific television station is dominant in its field of operation. Accordingly,  xthe following estimates of small businesses to which the new rules will apply do not exclude any  xtelevision station from the definition of a small business on this basis and are therefore  xjoverinclusive to that extent. An additional element of the definition of "small business" is that  X6- xLthe entity must be independently owned and operated. We attempted to factor in this element  xby looking at revenue statistics for owners of television stations. However, as discussed further  xbelow, we could not fully apply this criterion, and our estimates of small businesses to which the  xrules may apply may be overinclusive to this extent. The SBA's general size standards are  xideveloped 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. "H 0*$$33"Ԍ  X-  _ xWith respect to applying the revenue cap, the SBA has defined "annual receipts"  xspecifically in 13 C.F.R  121.104, and its calculations include an averaging process. We do not  x=currently require submission of financial data from licensees that we could use in applying the  x/SBA's definition of a small business. Thus, for purposes of estimating the number of small  xentities to which the rules apply, we are limited to considering the revenue data that are publicly  xyavailable, and the revenue data on which we rely may not correspond completely with the SBA definition of annual receipts.   ?xUnder SBA criteria for determining annual receipts, if a concern has acquired an affiliate  xor been acquired as an affiliate during the applicable averaging period for determining annual  xzreceipts, the annual receipts in determining size status include the receipts of both firms. 13  xC.F.R.  121.104(d)(1). The SBA defines affiliation in 13 C.F.R.  121.103. In this context, the  xSBA's definition of affiliate is analogous to our attribution rules. Generally, under the SBA's  xLdefinition, concerns are affiliates of each other when one concern controls or has the power to  xcontrol the other, or a third party or parties controls or has the power to control both. 13 C.F.R.  x 121.103(a)(1). The SBA considers factors such as ownership, management, previous  xrelationships with or ties to another concern, and contractual relationships, in determining whether  xkaffiliation exists. 13 C.F.R.  121.103(a)(2). Instead of making an independent determination  xof 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. 3. Estimates Based on Census Data  X-  xThe rules amended by this Report and Order will apply to full service television and radio  x[stations, FM and TV translator facilities, low power TV stations ("LPTV"), television and radio  xauxiliary and booster facilities, international broadcasting stations, television and radio network auxiliary facilities, and video microwave facilities.  Xg-  xThere were 1,509 television stations operating in the nation in 1992.+Xg yO-ԍ 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 UC92S1, Appendix A9 (1995).+ That number has  xremained fairly constant as indicated by the approximately 1,550 operating television broadcasting  X9- xstations in the nation as of August, 1996.S 9 yO!-ԍ FCC News Release No. 64958, Sept. 6, 1996.S For 1992!9x {Ob#-ԍ Census for communications establishments are performed every five years ending with a "2" or "7". See  {O,$-Economics and Statistics Administration, Bureau of Census, U.S. Department of Commerce, supra note 31. the number of television stations that"9!0*$$33]"  X-produced less than $10.0 million in revenue was 1,155 establishments.a"X yOy-ԍ 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.a   xThe rule changes will also affect radio stations. The SBA defines a radio broadcasting  X- x{station that has no more than $5 million in annual receipts as a small business.J# yOT-ԍ 13 C.F.R.  121.201, SIC 4832.J A radio  X- x.broadcasting station is an establishment primarily engaged in broadcasting aural programs by  X- xjradio to the public.$x {O -ԍ Economics and Statistics Administration, Bureau of Census, U.S. Department of Commerce, supra note 6, Appendix A9. Included in this industry are commercial religious, educational, and other  Xv- xradio stations.2%v {O-ԍ Id.2 Radio broadcasting stations which primarily are engaged in radio broadcasting  X_- xand which produce radio program materials are similarly included.2&_d  {Ot-ԍ Id.2 However, radio stations  xwhich are separate establishments and are primarily engaged in producing radio program material  X1- xyare classified under another SIC number.2'1  {O-ԍ Id.2 The 1992 Census indicates that 96 percent (5,861 of  X - xl6,127) of radio station establishments produced less than $5 million in revenue in 1992.(  yOS-ԍ The Census Bureau counts radio stations located at the same facility as one establishment. Therefore, each colocated AM/FM combination counts as one establishment.  x/Official Commission records indicate that 11,334 individual radio stations were operating in  X - x1992.S)  yO}-ԍ FCC News Release No. 31327, Jan. 13, 1993.S As of December 1996, official Commission records indicate that 12,140 radio stations  X -are currently operating.|* p {O-ԍ FCC News Release, Broadcast Station Totals as of December 31, 1996.   |   0xThus, the rule changes will affect approximately 1,550 television stations, approximately  X- x\1,194 of which are considered small businesses.+ yOC"-ԍ 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. Additionally, the rule changes will affect"Z+0*$$33"  X- x12,140 radio stations, approximately 11,605 of which are small businesses.,X yOy-ԍ 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. These estimates  xmay overstate the number of ;"U   ;"U small entities since the revenue figures on which they are based do not include or aggregate revenues from nontelevision or nonradio affiliated companies.   xWe recognize that the rule changes may also affect minority and womenowned stations,  xsome of which may be small entities. In 1995, minorities owned and conrolled 37 (3.0%) of  x1,221 commercial television stations and 293 (2.9%) of the commercial radio stations in the  X_- xUnited States.b-_ {O -ԍ 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  {O-individual proprietor. Id. The minority groups included in this report are Black, Hispanic, Asian, and Native American.b According to the U.S. Bureau of the Census, in 1987 women owned and  xcontrolled 27 (1.9%) of 1,342 commercial and noncommercial television stations and 394 (3.8%)  X1-of 10,244 commercial and noncommercial radio stations in the United States._.1d  {OF-ԍ See Comments of American Women in Radio and Television, Inc. in MM Docket No 94149 and MM  {O-Docket No. 91140, at 4 n.4 (filed May 17, 1995), citing Economic Censuses, WomenOwned Business, WB871, 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 (fourdigit Standard Industrial Classification (SIC) Code), but rather by the general twodigit 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  {O-license owners. Policies and Rules Regarding Minority and Female Ownership of Mass Media Facilities, Notice  {OT-of Proposed Rulemaking, 10 FCC Rcd 2788, 2797 (1995). _   xThe rule changes also affect radio translator and booster stations, television translator  xZstations, experimental radio stations and television stations, and LPTV stations. The Commission  xkhas not developed a definition of small entities applicable to radio or television booster and  x{translator stations, or experimental radio or television stations. Therefore, the applicable  xdefinition of a small entity is the definition under the SBA rules applicable to radio and television  xstations. Under this definition, FM booster and translator radio stations and experimental radio  xstations (SIC Code 4832) that would qualify as small businesses would be those radio  x\broadcasting facilities with maximum revenues of $5 million. Similarly, under this definition,  xZtelevision translator stations, television experimental stations, and LPTV stations (SIC Code 4833)"K.0*$$33 " would be those television broadcasting facilities with maximum revenues of $10.5 million.   xThere are currently 2,720 FM translator and booster stations, 4,952 TV translator stations,  X- x/and 1,954 LPTV stations which will be affected by the new license term rules.r/ {O4-ԍ FCC news release, Broadcast Station Totals as of December 31, 1996.r Neither the  xFCC nor the Department of Commerce collects financial information on these broadcast facilities.  xWe will assume for present purposes, however, that most of these broadcast facilities, including  xLPTV stations, could be classified as small businesses. As we indicated earlier, 96% of radio  xstations and 78% of TV stations are designated as small businesses. Given this situation, these  xstations would not likely have revenues that exceed the SBA maximum to be designated as small businesses.   xWe have no compilation of data on how many experimental stations are small entities.  xWe will therefore assume that all are small entities as defined by the SBA. We believe, however,  xthat this assumption greatly overstates the number of experimental stations that are small  xbusinesses since some of the licensees of experimental stations may have aggregate revenues that are above the revenue definition of small businesses. 4. Alternative Classification of Small Stations   OxAn alternative way to classify small radio and television stations is by the number of  xemployees. The Commission currently applies a standard based on the number of employees in  X- x=administering its Equal Employment Opportunity ("EEO") rule for broadcasting."0xZ yO(-ԍ 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, Pub. L. No. 102366,  222(b)(1), 106 Stat. 999 (1992), as further amended by the Small Business Administration Reauthorization and Amendments Act of 1994, Pub. L. No. 103403,  301, 108 Stat. 4187 (1994). However, this definition was adopted after public notice and an  yO-opportunity for comment. See Report and Order in Docket No. 18244, 23 FCC 2d 430 (1970)." Thus, radio  xor television stations with fewer than five fulltime employees are exempted from certain EEO  X- xreporting and recordkeeping requirements.1xX yO:-ԍ See, e.g., 47 C.F.R.  73.3612 (Requirement to file annual employment reports on Form 395B applies to  yO -licensees with five or more fulltime employees); First Report and Order in Docket No. 21474 (In the Matter of  yO -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  yOZ"-on small stations while maintaining the effectiveness of our broadcast EEO enforcement. Order and Notice of  yO"#-Proposed Rule Making in MM Docket No. 9616 (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"#00*$$5$" to Include EEO Forfeiture Guidelines), 11 FCC Rcd 5154 (1996). One option under consideration is whether to  yOX-define a small station for purposes of affording such relief as one with ten or fewer fulltime employees. Id. at  21. We estimate that the total number of broadcast"10*$$33s"  X-stations with 4 or fewer employees is 4,239.2 yOa-ԍ We base this estimate on a compilation of 1994 Broadcast Station Annual Employment Reports (FCC Form 395B), performed by staff of the Equal Opportunity Employment Branch, Mass Media Bureau, FCC.  X- IV. Projected Compliance Requirements of the Rule:  X-   xThis Report and Order imposes compliance with new license terms for broadcast stations  X- xin accordance with the amended rules set forth in the Report and Order.  Compliance will be  Xz- xLimplemented as follows. For broadcast renewal applications granted after the effective date of  xa decision in this proceeding, we will ordinarily grant the renewed license for the maximum  XN- xLproposed term of 8 years.3N yO-ԍ 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. For renewal applications that have been filed as part of the current  X7- x=renewal cycle (e.g., the cycle beginning October 1, 1995 for radio stations, and October 1, 1996  xfor television stations) and that have been granted only the maximum 7year or 5year license  X - xterm provided under our current rules because they were processed prior to a decision in this  xproceeding, we will extend the already renewed 7year or 5year license term for such stations  x to the proposed 8year term. We consequently direct the staff to modify the terms of such  xKlicenses to afford these licensees the newly authorized 8year term and to ensure synchronization of such licenses with future renewal cycles.  X-  xThe Report and Order imposes no new reporting or recordkeeping requirements. To the  xcontrary, broadcasters will have fewer filings to make, since initial license terms will be for  x\longer periods and renewal filings will be made less frequently. These changes will result in  xjgreater economic efficiency for broadcasters, especially those classified as small entities, since administrative burdens on broadcast licensees will be reduced.  X- x! V. Significant Alternatives Considered Minimizing the Economic Impact on Small Entities  X-and Consistent with the Stated Objectives:   ]xThe action taken does not impose additional burdens on small entities. To the contrary,  xit lessons burdens on both small and large entities by lengthening broadcast license terms to the maximum extent authorized by statute. "q` 30*$$33"Ԍ  /xMAP/CME opposes extending broadcast license terms to eight years because of concerns  xyabout the potential effects of such an action on the public interest obligations of broadcasters.  x MAP/CME believes that longer license terms, together with the elimination of comparative  x.renewals, focus on the interests of broadcasters and will result in no meaningful public review  xkof broadcasters' performance. MAP/CME also believes that the Commission should extend  x=broadcast license terms to the maximum 8year period only if it adds quantitative programming  Xv-requirements as part of broadcasters' public interest obligations.N4v {O-ԍ See  811, supra.N   xLike MAP/CME, we are concerned about the public interest obligations of licensees. We  x[are also cognizant of Congressional intent to reduce regulatory burdens while at the same time  X - xproviding for meaningful review of licensee performance. In this Report and Order we have  xiaddressed these public interest and regulatory concerns. On balance, we find that the 8year term  xwould serve the public interest. Accordingly, we amend our rules to provide that broadcast  xlicenses ordinarily have the maximum 8year term authorized under the Telecom Act. As stated  X - xin the NPRM, we believe this change in broadcast license terms is consistent with the public  xinterest since licensees will continue to be subject to scrutiny by both the public and the  xCommission. In keeping with this concern, we reiterate that Section 203 of the Telecom Act,  xas well as our revised rules, explicitly reserve the Commission's authority to grant individual  x.licenses for less than the statutory maximum if the public interest, convenience, and necessity  XO-would be served by such action.N5OZ {OZ-ԍ See  912, supra.N   xPursuant to the RFA, 5 U.S.C.  603(c), we have considered whether there is a significant  xeconomic impact on a substantial number of small entities. We conclude that there is no adverse  xeconomic impact on such entities. To the contrary, extending broadcast license terms would  X- xLbenefit small business entities (e.g., small radio stations, auxiliary stations and LPTV stations),  xby reducing the administrative burdens on such entities, thereby allowing them to operate more efficiently in the competitive marketplace.  X- VI. Report to Congress   mxThe Commission shall send a copy of this Final Regulatory Flexibility Analysis along  X=- xLwith this Report and Order in a report to Congress pursuant to the Small Business Regulatory  x\Enforcement Fairness Act of 1996, codified at 5 U.S.C.  801(a)(1)(A). A copy of this FRFA  X-will also be published in the Federal Register.  X-T T"50*$$33"Ԍ X-)APPENDIX B TP  X-List of Commenters Media Access Project and Center For Media Education National Association of Broadcasters National Broadcasting Company, Inc.  XH-List of Reply Commenters Association of Local Television Stations, Inc. Capital Cities/ABC, Inc. Media Access Project and Center For Media Education "50*$$33"  X-) APPENDIX C ĐTP  X-A Rules T TPPart 73 of Title 47 of the Code of Federal Regulations is amended to read as follows: PART 73 RADIO BROADCAST SERVICES  X1-x1.` ` The Authority Citation for Part 73 is amended to read as follows: xAUTHORITY: 47 U.S.C. 154, 303, and 307 unless otherwise noted.  X -x2.` ` Section 73.733 is amended to read as follows:  73.733 Normal license period.   xAll 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.  X-x3.` ` Section 73.1020 is amended by revising paragraph (a) to read as follows:   x(a) Initial licenses for broadcast stations will ordinarily be issued for a period running until  xMthe date specified in this section for the State or Territory in which the station is located. If  xissued after such date, it will run to the next renewal date determined in accordance with this  xNsection. Both radio and TV broadcasting stations will ordinarily be renewed for 8 years.  xZHowever, if the FCC finds that the public interest, convenience and necessity will served thereby,  xyit may issue either an initial license or a renewal thereof for a lesser term. The time of expiration  xof normally issued initial and renewal licenses will be 3 a.m., local time, on the following dates and thereafter at 8year intervals for radio and TV broadcast stations located in: * * * * *  xzPART 74 EXPERIMENTAL RADIO, AUXILIARY, SPECIAL BROADCAST AND OTHER PROGRAM DISTRIBUTIONAL SERVICES  X!-x1.` ` The Authority Citation for Part 74 is amended to read as follows: x xAUTHORITY: 47 U.S.C. 154, 303, 307, and 554."#50*$$33G""Ԍ X-ԙx2.` ` Paragraphs (d) and (f) of  74.15 are revised to read as follows: x 74.15 Station license period. x* * * * *   x(d) Initial licenses for low power TV, TV translator, and FM translator stations will  xordinarily be issued for a period running until the date specified in Section 73.1020 of this  xychapter for full service stations operating in their State or Territory, or if issued after such date,  x.to the next renewal date determined in accordance with Section 73.1020 of this chapter. Lower  xpower TV and TV translator station and FM translator station licenses will ordinarily be renewed  xfor 8 years. However, if the FCC finds that the public interest, convenience or necessity will be  xjserved, it may issue either an initial license or a renewal thereof for a lesser term. The FCC may  x0also issue a license renewal for a shorter term if requested by the applicant. The time of  xexpiration 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 Section 73.1020 of this chapter: * * * * *   x(f) Licenses held by broadcast networkentities under Subpart F will ordinarily be issued  xfor a period of 8 years running concurrently with the normal licensing period for broadcast  xstations located in the same area of operation. An application for renewal of license (FCC Form  x>313R) shall be filed not later than the first day of the fourth full calendar month prior to the  xNexpiration date of the license sought to be renewed. If the prescribed deadline falls on a  xinonbusiness day, the cutoff shall be the close of business of the first full business day thereafter.