Adjustment of Cable Statutory License Royalty Rates, 24611-24614 [2017-10970]

Download as PDF Federal Register / Vol. 82, No. 102 / Tuesday, May 30, 2017 / Proposed Rules paragraph (g) of this AD may be removed from the AFM for that airplane. (1) If during the inspection required by paragraph (h) of this AD it is determined that a diaphragm is present: Before further flight, replace the wing anti-ice system ducting. (2) If during the inspection required by paragraph (h) of this AD it is determined that a diaphragm is not present: Before further flight, do a check of the anti-ice pipe part number and re-identify the wing anti-ice system ducting. Issued in Renton, Washington, on May 15, 2017. Michael Kaszycki, Acting Manager, Transport Airplane Directorate, Aircraft Certification Service. (i) Other FAA AD Provisions Food and Drug Administration The following provisions also apply to this AD: (1) Alternative Methods of Compliance (AMOCs): The Manager, International Branch, ANM–116, Transport Airplane Directorate, FAA, has the authority to approve AMOCs for this AD, if requested using the procedures found in 14 CFR 39.19. In accordance with 14 CFR 39.19, send your request to your principal inspector or local Flight Standards District Office, as appropriate. If sending information directly to the International Branch, send it to the attention of the person identified in paragraph (j)(2) of this AD. Information may be emailed to: 9-ANM-116-AMOCREQUESTS@faa.gov. Before using any approved AMOC, notify your appropriate principal inspector, or lacking a principal inspector, the manager of the local flight standards district office/certificate holding district office. (2) Contacting the Manufacturer: For any requirement in this AD to obtain corrective actions from a manufacturer, the action must be accomplished using a method approved by the Manager, International Branch, ANM– 116, Transport Airplane Directorate, FAA; or the European Aviation Safety Agency (EASA); or Dassault Aviation’s EASA Design Organization Approval (DOA). If approved by the DOA, the approval must include the DOA-authorized signature. sradovich on DSK3GMQ082PROD with PROPOSALS (j) Related Information (1) Refer to Mandatory Continuing Airworthiness Information (MCAI) Emergency Airworthiness Directive 2016– 0130–E, dated July 5, 2016, for related information. This MCAI may be found in the AD docket on the Internet at http:// www.regulations.gov by searching for and locating Docket No. FAA–2017–0494. (2) For more information about this AD, contact Tom Rodriguez, Aerospace Engineer, International Branch, ANM–116, Transport Airplane Directorate, FAA, 1601 Lind Avenue SW., Renton, WA 98057–3356; telephone 425–227–1137; fax 425–227–1149. (3) For service information identified in this AD, contact Dassault Falcon Jet Corporation, Teterboro Airport, P.O. Box 2000, South Hackensack, NJ 07606; telephone 201–440–6700; Internet http:// www.dassaultfalcon.com. You may view this referenced service information at the FAA, Transport Airplane Directorate, 1601 Lind Avenue SW., Renton, WA. For information on the availability of this material at the FAA, call 425–227–1221. VerDate Sep<11>2014 19:39 May 26, 2017 Jkt 241001 [FR Doc. 2017–10545 Filed 5–26–17; 8:45 am] BILLING CODE 4910–13–P 24611 will request an environmental assessment and make it available for public inspection. Dated: May 23, 2017. Anna K. Abram, Deputy Commissioner for Policy, Planning, Legislation, and Analysis. [FR Doc. 2017–11010 Filed 5–26–17; 8:45 am] DEPARTMENT OF HEALTH AND HUMAN SERVICES BILLING CODE 4164–01–P LIBRARY OF CONGRESS Copyright Royalty Board 21 CFR Part 573 [Docket No. FDA–2017–F–2130] 37 CFR Part 387 BASF Corp.; Filing of Food Additive Petition (Animal Use) [Docket No. 15–CRB–0010–CA–S] AGENCY: Food and Drug Administration, HHS. ACTION: The Food and Drug Administration (FDA) is announcing that BASF Corp. has filed a petition proposing that the food additive regulations be amended to provide for the safe use of formic acid as a feed acidifying agent in complete poultry feeds. DATES: The food additive petition was filed on February 10, 2017. FOR FURTHER INFORMATION CONTACT: Chelsea Trull, Center for Veterinary Medicine, Food and Drug Administration, 7519 Standish Pl., Rockville, MD 20855, 240–402–6729, Chelsea.trull@fda.hhs.gov. SUPPLEMENTARY INFORMATION: Under the Federal Food, Drug, and Cosmetic Act (section 409(b)(5) (21 U.S.C. 348(b)(5)), notice is given that a food additive petition (FAP 2301) has been filed by BASF Corp., 100 Park Ave., Florham Park, NJ 07932. The petition proposes to amend Title 21 of the Code of Federal Regulations (CFR) in part 573 (21 CFR part 573) Food Additives Permitted in Feed and Drinking Water of Animals to provide for the safe use of formic acid as a feed acidifying agent in complete poultry feeds. The petitioner has claimed that this action is categorically excluded under 21 CFR 25.32(r) because it is of a type that does not individually or cumulatively have a significant effect on the human environment. In addition, the petitioner has stated that to their knowledge, no extraordinary circumstances exist. If FDA determines a categorical exclusion applies, neither an environmental assessment nor an environmental impact statement is required. If FDA determines a categorical exclusion does not apply, we PO 00000 Frm 00042 Fmt 4702 Sfmt 4702 Copyright Royalty Board, Library of Congress. ACTION: Notice of settlement and proposed rule. AGENCY: Notice of petition. SUMMARY: Adjustment of Cable Statutory License Royalty Rates The Copyright Royalty Judges (Judges) publish for comment proposed regulations to require covered cable systems to pay a separate per-telecast royalty (a Sports Surcharge) in addition to the other royalties that that cable system must pay under Section 111 of the Copyright Act. DATES: Comments are due no later than June 20, 2017. ADDRESSES: Submit electronic comments via email to crb@loc.gov or online at http://www.regulations.gov. Those who choose not to submit comments electronically should see How to Submit Comments in the Supplementary Information section below for physical addresses and further instructions. The proposed rule is also posted on the agency’s Web site (www.loc.gov/crb). FOR FURTHER INFORMATION CONTACT: Anita Brown-Blaine, Program Specialist, by telephone at (202) 707–7658, or by email at crb@loc.gov. SUPPLEMENTARY INFORMATION: SUMMARY: Background On January 11, 2017, the Copyright Royalty Judges (Judges) received a motion from the Joint Sports Claimants (JSC),1 the NCTA-The Internet and Television Association, and the American Cable Association, which represent that they are the only parties to this proceeding, notifying the Judges 1 The Joint Sports Claimants are the Office of the Commissioner of Baseball, the National Football League, the National Basketball Association, the Women’s National Basketball Association, the National Hockey League, and the National Collegiate Athletic Association. E:\FR\FM\30MYP1.SGM 30MYP1 24612 Federal Register / Vol. 82, No. 102 / Tuesday, May 30, 2017 / Proposed Rules that they reached a complete settlement of the proceeding. Joint Motion of the Participating Parties to Suspend Procedural Schedule and to Adopt Settlement at 1. The moving parties requested that the Judges terminate the proceeding by adopting the proposed rule set forth in Exhibit A of the joint motion. The moving parties further requested that the Judges suspend, pending resolution of the joint motion, the procedural schedule set forth in the Order of Bifurcation, Second Order of Further Proceedings, Notice of Participants, and Scheduling Order, Docket No. 15–CRB–0010–CA–S (June 22, 2016). On February 7, 2017, the Judges issued an order in which they suspended the procedural schedule they established by order dated June 22, 2016, pending the Judges’ review of the moving parties’ settlement agreement and publication of the agreement for public comment. The Judges stated that they would defer decision on adoption of the settlement agreement and termination of the proceeding until after they consider comments, if any, filed in response to publication of the settlement notice. This notice is further to the Judges’ February 7, 2017 Order. A. Background Section 111(d)(1)(B) of the Copyright Act, 17 U.S.C. 111(d)(1)(B), sets forth the royalty rates that ‘‘Form 3’’ cable systems must pay to retransmit broadcast signals pursuant to the Section 111(c) statutory license. Form 3 systems are those with semi-annual ‘‘gross receipts’’ greater than $527,600. See id. §§ 111(d)(1)(B), (E) & (F); 37 CFR 201.17(d). Section 801(b)(2)(C) of the Act provides: sradovich on DSK3GMQ082PROD with PROPOSALS In the event of any change in the rules and regulations of the Federal Communications Commission [‘‘FCC’’] with respect to syndicated and sports program exclusivity after April 15, 1976, the rates established by section 111(d)(1)(B) may be adjusted to assure that such rates are reasonable in light of the changes to such rules and regulations, but any such adjustment shall apply only to the affected television broadcast signals carried on those systems affected by the change. 17 U.S.C. 801(b)(2)(C). Section 804(b)(1)(B) of the Copyright Act states that, in ‘‘order to initiate proceedings under section [801(b)(2)(C)],’’ an interested party must file a petition with the Judges requesting a rate change within twelve months of the FCC’s action. 17 U.S.C. 804(b)(1)(B); see H.R. Rep. No. 94–1476 at 178 (1976) (right to seek review ‘‘exercisable for a 12 month period following the date such changes are finally effective’’). The VerDate Sep<11>2014 19:39 May 26, 2017 Jkt 241001 FCC adopted sports exclusivity rules for cable systems in 1975. See Report and Order in Doc. No. 19417, 54 F.C.C.2d 265 (1975) (‘‘Sports Rules’’). The FCC repealed the Sports Rules effective November 24, 2014. See Sports Blackout Rules, 79 FR 63547 (Oct. 24, 2014). At the time of the Sports Rules’ repeal, they were codified at 47 CFR 76.111 (2014). On November 23, 2015, JSC filed a rate adjustment petition pursuant to Section 801(b)(2)(C) of the Copyright Act. In their June 22 Order, the Judges established a procedural schedule for ruling on the JSC petition. While the moving parties were unable to settle this matter during the voluntary negotiation period established by the June 22 Order, they continued those negotiations and now agree that this proceeding should be terminated with the adoption of the proposed rule set forth in Exhibit A to the joint motion. B. Scope of the Proposed Rule The proposed rule would require covered cable systems to pay a separate per-telecast royalty (a Sports Surcharge) in addition to the other royalties that that cable system must pay under Section 111 of the Copyright Act. Joint Motion at 3. The Sports Surcharge would amount to 0.025 percent of the cable system’s ‘‘gross receipts’’ during the relevant semi-annual accounting period for the secondary transmission of each affected broadcast of a sports event, provided that all of the conditions of the proposed rule are satisfied. Thus, if a covered cable system made a secondary transmission of one affected broadcast, it would pay 0.025 percent of ‘‘gross receipts’’ during the relevant semi-annual accounting period for that transmission; if it made secondary transmissions of two affected broadcasts, it would pay 0.025 percent of ‘‘gross receipts’’ during the relevant semi-annual accounting period for each of those transmissions (or a total of 0.050 percent of its ‘‘gross receipts’’). Id. Section 801(b)(2)(C) of the Act states that any rate adopted in this proceeding ‘‘shall apply only to the affected television broadcast signals carried on those systems affected by the change.’’ Furthermore, moving parties note that Section 801(b)(2)(C) authorizes the Judges to adjust only the royalty rates set forth in Section 111(d)(1)(B) of the Act. The moving parties also note that Section 111(d)(3)(A) of the Act permits the distribution of royalties only to copyright owners of distant signal ‘‘nonnetwork television programs.’’ Joint Motion at 3–4. The moving parties note that, consistent with the statutory mandates discussed above, the proposed rule, PO 00000 Frm 00043 Fmt 4702 Sfmt 4702 summarized below, limits the circumstances under which cable systems must pay the Sports Surcharge. Under the proposal: Covered Cable System. Only a ‘‘covered cable system,’’ as defined in the proposed rule, would be subject to the Sports Surcharge. That definition tracks the language of the former FCC Sports Rules, which applied only to a ‘‘community unit’’ located in whole or in part within a defined geographic area (‘‘specified zone’’) associated with a community in which a sports event occurs. See 47 CFR 76.111(a) (2014). The FCC has defined a ‘‘community unit’’ as: ‘‘A cable television system, or portion of a cable television system, that operates or will operate within a separate and distinct community or municipal entity (including unincorporated communities within unincorporated areas and including single, discrete unincorporated areas).’’ 47 CFR 76.5(dd) (2014). And it has defined ‘‘specified zone’’ as an area extending 35 miles from certain ‘‘reference points’’ in the FCC rules. 47 CFR 76.5(e) (2014). Consistent with Section 801(b)(2)(C) of the Act, only a covered cable system that, for purposes of the compulsory license is a ‘‘Form 3’’ system, i.e., one whose royalties are specified by Section 111(d)(1)(B), would be subject to the Sports Surcharge. Non-Network Programs. Only copyright owners of certain ‘‘non-network programs’’ may receive Section 111 royalties. 17 U.S.C. 111(d)(3)(A). Accordingly, a covered cable system must pay a Sports Surcharge only for the secondary transmission of distant signal ‘‘non-network programs’’ within the meaning of 17 U.S.C. 111(d)(3)(A). Sports Events. The Sports Surcharge would apply only to the carriage of eligible professional sports events and eligible collegiate sports events involving teams that are members of JSC and, in the case of eligible collegiate sports events, would be subject to a cap on the number of events involving a particular team that would be subject to the surcharge during any accounting period. Gross Receipts. The covered cable system would calculate the Sports Surcharge as a percentage of its ‘‘gross receipts’’ during the six-month accounting period in which the affected telecast or telecasts were carried. The term ‘‘gross receipts’’ has the same meaning as in 17 U.S.C. 111(d)(1)(B). Because Section 111 royalties are distributed only to copyright owners of certain distant signal programming (17 U.S.C. 111(d)(3)(A)), the covered cable system need not include in its gross receipts any revenues from subscribers who reside in the ‘‘local service area’’ of a broadcast station whose sports programming would otherwise have been subject to deletion under the former FCC Sports Rules. The term ‘‘local service area’’ is defined in 17 U.S.C. 111(f)(4). The Sports Rules also exempted from their scope community units (a) with fewer than 1,000 subscribers (47 CFR 76.111(f) (2014)); (b) located outside the ‘‘specified zone’’ of that community unit’s local broadcast stations (id. § 76.111(a)); and (c) in which the affected signal was carried prior to March 31, 1972 (id. § 76.111(e)). E:\FR\FM\30MYP1.SGM 30MYP1 Federal Register / Vol. 82, No. 102 / Tuesday, May 30, 2017 / Proposed Rules Accordingly, revenues derived from subscribers in the communities served by these community units also would be excluded in determining the amount of any Sports Surcharge. Notification. The former FCC Sports Rules required the deletion of certain distant signal sports programming only when the cable system received timely advance notice from the holder of the local broadcast rights. See 47 CFR 76.111(b) & (c) (2014). Accordingly, a covered cable system will be required to pay the Sports Surcharge only if it receives timely notice as required by those rules. An example of a notice that the moving parties believe contained the requisite information is attached as Exhibit B to the Joint Motion. Finally, in the case of advance notices pertaining to eligible collegiate sports events, such notice must be accompanied by evidence confirming that the event is one to which the Sports Surcharge applies. Effective Date. The moving parties agree that to facilitate a smooth transition, the surcharge will take effect as of January 1, 2018. sradovich on DSK3GMQ082PROD with PROPOSALS According to the moving parties, the royalty rate reflected in the proposed rule represents a negotiated compromise based upon current market and regulatory conditions as well as various other factors and does not represent the fair market value of any secondary transmission of a sports event. None of the moving parties believes that the proposed rule should be considered precedential in any way for any purpose. The moving parties recognize that the proposed rule, if adopted, may be reconsidered in 2020 and every five years thereafter. See 17 U.S.C. 804(b)(1)(B). The moving parties continue that if, for any reason, the Judges do not adopt the proposed rule, each of the moving parties reserves the right to demonstrate that the Judges should adopt a different rate adjustment to account for the FCC’s repeal of its Sports Rules. C. The Judges’ Authority To Adopt the Proposed Rule According to the moving parties, a key Congressional objective underlying the Judges’ rate-setting authority is the promotion of voluntary settlements rather than litigation. Joint Motion at 5, citing H.R. Rep. No. 108–408 at 24 (2004) (referring to the legislative policy of ‘‘facilitating and encouraging settlement agreements for determining royalty rates’’); id. at 30 (same). Consistent with that objective, Section 801(b)(7)(A) of the Copyright Act authorizes the Judges to accept a settlement reached by ‘‘some or all of the participants’’ in a rate proceeding ‘‘at any time during the proceeding.’’ 17 U.S.C. 801(b)(7)(A). The moving parties note that the Judges need not conduct a ‘‘full-fledged ratesetting’’ before VerDate Sep<11>2014 19:39 May 26, 2017 Jkt 241001 adopting a negotiated rate. Joint Motion at 5–6, citing H.R. Rep. No. 108–408 at 24 (2004). As the Judges have concluded: Section 801(b)(7)(A) of the Act is clear that the Judges have the authority to adopt settlements between some or all of the participants to a proceeding at any time during a proceeding so long as those that would be bound by those rates and terms are given an opportunity to comment. Requiring that the adoption of all proposed settlements wait until the conclusion of the proceeding would undercut the policy in Section 801(b)(7)(A) to promote negotiated settlements. Digital Performance Right in Sound Recordings and Ephemeral Recordings, Docket No. 2014–CRB–0001–WR (2016– 2020), 80 FR 58201, 58203 (Sept. 28, 2015) (emphasis in original); accord, Digital Performance Right in Sound Recordings and Ephemeral Recordings, Docket No. 2014–CRB–0001–WR (2016– 2020), 80 FR 59588, 59589 (Oct. 2, 2015). The Act requires that the Judges afford those who ‘‘would be bound by the terms, rates or other determination’’ in a settlement agreement ‘‘an opportunity to comment on the agreement.’’ 17 U.S.C. 801(b)(7)(A)(i). The moving parties note that the Copyright Royalty Board rules also contemplate that the Judges will ‘‘publish the settlement in the Federal Register for notice and comment from those bound by the terms, rates, or other determination set by the agreement.’’ 37 CFR 351.2(b)(2). The moving parties aver that the Judges must assess the ‘‘reasonable[ness]’’ of a voluntarilynegotiated rate only if participants to a proceeding who would be bound by the rate objected to it. Joint Motion at 6. The moving parties represent that they are the only parties participating in this proceeding, and they are urging the Judges to adopt the proposed Sports Surcharge. Id. Interested parties may comment and object to any or all of the proposed regulations contained in this notice. Such comments and objections must be submitted no later than June 20, 2017. How To Submit Comments Interested members of the public must submit comments to only one of the following addresses. If not commenting by email or online, commenters must submit an original of their comments, five paper copies, and an electronic version on a CD. Email: crb@loc.gov; or Online: http://www.regulations.gov; or U.S. mail: Copyright Royalty Board, P.O. Box 70977, Washington, DC 20024– 0977; or PO 00000 Frm 00044 Fmt 4702 Sfmt 4702 24613 Overnight service (only USPS Express Mail is acceptable): Copyright Royalty Board, P.O. Box 70977, Washington, DC 20024–0977; or Commercial courier: Address package to: Copyright Royalty Board, Library of Congress, James Madison Memorial Building, LM–403, 101 Independence Avenue SE., Washington, DC 20559– 6000. Deliver to: Congressional Courier Acceptance Site, 2nd Street NE. and D Street NE., Washington, DC; or Hand delivery: Library of Congress, James Madison Memorial Building, LM– 401, 101 Independence Avenue SE., Washington, DC 20559–6000. List of Subjects in 37 CFR Part 387 Copyright, Cable television, Royalties. Proposed Regulations For the reasons set forth in the preamble, and under the authority of chapter 8, title 17, United States Code, the Copyright Royalty Judges propose to amend 37 CFR chapter III as follows: PART 387—ADJUSTMENT OF ROYALTY FEE FOR CABLE COMPULSORY LICENSE 1. The authority citation for part 387 continues to read as follows: ■ Authority: 17 U.S.C. 801(b)(2), 803(b)(6). 2. Amend § 387.2 by: a. Redesignating paragraph (e) as paragraph (f) and ■ b. Adding a new paragraph (e), to read as follows: ■ ■ § 387.2 Royalty fee for compulsory license for secondary transmission by cable systems. * * * * * (e) Sports programming surcharge. Commencing with the first semiannual accounting period of 2018 and for each semiannual accounting period thereafter, in the case of a covered cable system filing Form SA3 as referenced in 37 CFR 201.17(d)(2)(ii) (2014), the royalty rate shall be, in addition to the amounts specified in paragraphs (a), (c) and (d) of this section, a surcharge of 0.025 percent of the covered cable system’s gross receipts for the secondary transmission to subscribers of each live television broadcast of an eligible professional sports event or eligible collegiate sports event where the secondary transmission of such broadcast would have been subject to deletion under the FCC Sports Blackout Rule (47 CFR 76.111). For purposes of this paragraph: (1) The term ‘‘cable system’’ shall have the same meaning as in 17 U.S.C. 111(f)(3); (2) A ‘‘covered cable system’’: E:\FR\FM\30MYP1.SGM 30MYP1 sradovich on DSK3GMQ082PROD with PROPOSALS 24614 Federal Register / Vol. 82, No. 102 / Tuesday, May 30, 2017 / Proposed Rules (i) Is a ‘‘community unit,’’ as the comparable term is defined or interpreted in accordance with § 76.5(dd) of the rules and regulations of the Federal Communications Commission in effect as of November 23, 2014, 47 CFR 76.5(dd) (2014); (ii) That is located in whole or in part within the 35-mile specified zone of a television broadcast station licensed to a community in which a sports event is taking place, provided that if there is no television broadcast station licensed to the community in which a sports event is taking place, the applicable specified zone shall be that of the television broadcast station licensed to the community with which the sports event or team is identified, or, if the event or local team is not identified with any particular community, the nearest community to which a television station is licensed; and (iii) Whose royalty fee is specified by 17 U.S.C. 111(d)(1)(B); (3) A ‘‘television broadcast’’ of a sports event must qualify as a ‘‘nonnetwork television program’’ within the meaning of 17 U.S.C. 111(d)(3)(A); (4) An ‘‘eligible professional sports event’’ is a game involving teams that are members of the National Football League, Major League Baseball, the National Hockey League, the National Basketball Association, or the Women’s National Basketball Association; (5) An ‘‘eligible collegiate sports event’’ is a game involving a football or men’s basketball team that is a member of Division I of the National Collegiate Athletic Association on whose behalf the FCC Sports Blackout Rule (47 CFR 76.111) was invoked during the period from January 1, 2012 to November 23, 2014; (6) The term ‘‘specified zone’’ shall be defined as the comparable term is defined or interpreted in accordance with Section § 76.5(e) of the rules and regulations of the Federal Communications Commission in effect as of November 23, 2014, 47 CFR 76.5(e) (2014); (7) The term ‘‘gross receipts’’ shall have the same meaning as in 17 U.S.C. 111(d)(1)(B) and shall include all gross receipts of the covered cable system during the semiannual accounting period except those from the covered cable system’s subscribers who reside in: (i) The local service area of the primary transmitter, as defined in 17 U.S.C. 111(f)(4); (ii) Any community where the cable system has fewer than 1000 subscribers; (iii) Any community located wholly outside the specified zone referenced in paragraph (e)(1) above; and VerDate Sep<11>2014 19:39 May 26, 2017 Jkt 241001 (iv) Any community where the primary transmitter was lawfully carried prior to March 31, 1972; (8) The term ‘‘FCC Sports Blackout Rule’’ refers to § 76.111 of the rules and regulations of the Federal Communications Commission in effect as of November 23, 2014, 47 CFR76.111 (2014); (9) Subject to paragraph (e)(10) of this section, the surcharge will apply to the secondary transmission of the primary transmission of a live television broadcast of a sports event only where the holder of the broadcast rights to the sports event or its agent has given the covered cable system advance written notice regarding such secondary transmission as required by the former § 76.111(b) of the rules and regulations of the Federal Communications Commission in effect as of November 23, 2014, 47 CFR 76.111(b) & (c) (2014); and (10) In the case of collegiate sports events: (i) The holder of the broadcast rights or its agent also must attest that the specific team on whose behalf the surcharge notice is given meets the eligibility condition specified in paragraph (e)(5) of this section and provide documentary evidence in support thereof; and (ii) The number of events involving a specific team as to which a covered cable system must pay the surcharge will be no greater than the largest number of events as to which the Sports Blackout Rule (47 CFR 76.111) was invoked in a particular geographic area by such team during any one of the accounting periods occurring between January 1, 2012 and November 23, 2014. * * * * * Dated: May 23, 2017. Suzanne M. Barnett, Chief Copyright Royalty Judge. [FR Doc. 2017–10970 Filed 5–26–17; 8:45 am] BILLING CODE 1410–72–P ENVIRONMENTAL PROTECTION AGENCY 40 CFR Part 52 [EPA–R03–OAR–2016–0783; FRL–9961–03– Region 3] Approval and Promulgation of Air Quality Implementation Plans; Maryland; Regional Haze Best Available Retrofit Technology Measure for Verso Luke Paper Mill Environmental Protection Agency (EPA). ACTION: Proposed rule. AGENCY: PO 00000 Frm 00045 Fmt 4702 Sfmt 4702 The Environmental Protection Agency (EPA) is proposing to approve a state implementation plan (SIP) revision submitted by the State of Maryland. This revision pertains to a best available retrofit technology (BART) alternative measure for the Verso Luke Paper Mill (the Mill) submitted by the State of Maryland. Maryland requests new emissions limits for sulfur dioxide (SO2) and nitrogen oxides (NOX) for power boiler 24 at the Mill and a SO2 cap on tons emitted per year for power boiler 25, while also requesting removal of the specific BART emission limits for SO2 and NOX from power boiler 25. The alternative BART measure will provide greater reasonable progress for SO2 and NOX for regional haze by resulting in additional emission reductions of 2,055 tons per year (tpy) of SO2 and an additional 804 tpy of NOX than would occur through the previously approved BART measure for power boiler 25, a BART subject source. This action is being taken under the Clean Air Act (CAA). DATES: Written comments must be received on or before June 29, 2017. ADDRESSES: Submit your comments, identified by Docket ID No. EPA–R03– OAR–2016–0783 at http:// www.regulations.gov, or via email to rehn.brian@epa.gov. For comments submitted at Regulations.gov, follow the online instructions for submitting comments. Once submitted, comments cannot be edited or removed from Regulations.gov. For either manner of submission, EPA may publish any comment received to its public docket. Do not submit electronically any information you consider to be confidential business information (CBI) or other information whose disclosure is restricted by statute. Multimedia submissions (audio, video, etc.) must be accompanied by a written comment. The written comment is considered the official comment and should include discussion of all points you wish to make. EPA will generally not consider comments or comment contents located outside of the primary submission (i.e. on the Web, cloud, or other file sharing system). For additional submission methods, please contact the person identified in the FOR FURTHER INFORMATION CONTACT section. For the full EPA public comment policy, information about CBI or multimedia submissions, and general guidance on making effective comments, please visit http://www2.epa.gov/dockets/ commenting-epa-dockets. FOR FURTHER INFORMATION CONTACT: Irene Shandruk, (215) 814–2166, or by email at shandruk.irene@epa.gov. SUMMARY: E:\FR\FM\30MYP1.SGM 30MYP1

Agencies

[Federal Register Volume 82, Number 102 (Tuesday, May 30, 2017)]
[Proposed Rules]
[Pages 24611-24614]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-10970]


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LIBRARY OF CONGRESS

Copyright Royalty Board

37 CFR Part 387

[Docket No. 15-CRB-0010-CA-S]


Adjustment of Cable Statutory License Royalty Rates

AGENCY: Copyright Royalty Board, Library of Congress.

ACTION: Notice of settlement and proposed rule.

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SUMMARY: The Copyright Royalty Judges (Judges) publish for comment 
proposed regulations to require covered cable systems to pay a separate 
per-telecast royalty (a Sports Surcharge) in addition to the other 
royalties that that cable system must pay under Section 111 of the 
Copyright Act.

DATES: Comments are due no later than June 20, 2017.

ADDRESSES: Submit electronic comments via email to crb@loc.gov or 
online at http://www.regulations.gov. Those who choose not to submit 
comments electronically should see How to Submit Comments in the 
Supplementary Information section below for physical addresses and 
further instructions. The proposed rule is also posted on the agency's 
Web site (www.loc.gov/crb).

FOR FURTHER INFORMATION CONTACT: Anita Brown-Blaine, Program 
Specialist, by telephone at (202) 707-7658, or by email at crb@loc.gov.

SUPPLEMENTARY INFORMATION:

Background

    On January 11, 2017, the Copyright Royalty Judges (Judges) received 
a motion from the Joint Sports Claimants (JSC),\1\ the NCTA-The 
Internet and Television Association, and the American Cable 
Association, which represent that they are the only parties to this 
proceeding, notifying the Judges

[[Page 24612]]

that they reached a complete settlement of the proceeding. Joint Motion 
of the Participating Parties to Suspend Procedural Schedule and to 
Adopt Settlement at 1. The moving parties requested that the Judges 
terminate the proceeding by adopting the proposed rule set forth in 
Exhibit A of the joint motion. The moving parties further requested 
that the Judges suspend, pending resolution of the joint motion, the 
procedural schedule set forth in the Order of Bifurcation, Second Order 
of Further Proceedings, Notice of Participants, and Scheduling Order, 
Docket No. 15-CRB-0010-CA-S (June 22, 2016).
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    \1\ The Joint Sports Claimants are the Office of the 
Commissioner of Baseball, the National Football League, the National 
Basketball Association, the Women's National Basketball Association, 
the National Hockey League, and the National Collegiate Athletic 
Association.
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    On February 7, 2017, the Judges issued an order in which they 
suspended the procedural schedule they established by order dated June 
22, 2016, pending the Judges' review of the moving parties' settlement 
agreement and publication of the agreement for public comment. The 
Judges stated that they would defer decision on adoption of the 
settlement agreement and termination of the proceeding until after they 
consider comments, if any, filed in response to publication of the 
settlement notice. This notice is further to the Judges' February 7, 
2017 Order.

A. Background

    Section 111(d)(1)(B) of the Copyright Act, 17 U.S.C. 111(d)(1)(B), 
sets forth the royalty rates that ``Form 3'' cable systems must pay to 
retransmit broadcast signals pursuant to the Section 111(c) statutory 
license. Form 3 systems are those with semi-annual ``gross receipts'' 
greater than $527,600. See id. Sec. Sec.  111(d)(1)(B), (E) & (F); 37 
CFR 201.17(d). Section 801(b)(2)(C) of the Act provides:

    In the event of any change in the rules and regulations of the 
Federal Communications Commission [``FCC''] with respect to 
syndicated and sports program exclusivity after April 15, 1976, the 
rates established by section 111(d)(1)(B) may be adjusted to assure 
that such rates are reasonable in light of the changes to such rules 
and regulations, but any such adjustment shall apply only to the 
affected television broadcast signals carried on those systems 
affected by the change.

17 U.S.C. 801(b)(2)(C).
    Section 804(b)(1)(B) of the Copyright Act states that, in ``order 
to initiate proceedings under section [801(b)(2)(C)],'' an interested 
party must file a petition with the Judges requesting a rate change 
within twelve months of the FCC's action. 17 U.S.C. 804(b)(1)(B); see 
H.R. Rep. No. 94-1476 at 178 (1976) (right to seek review ``exercisable 
for a 12 month period following the date such changes are finally 
effective''). The FCC adopted sports exclusivity rules for cable 
systems in 1975. See Report and Order in Doc. No. 19417, 54 F.C.C.2d 
265 (1975) (``Sports Rules''). The FCC repealed the Sports Rules 
effective November 24, 2014. See Sports Blackout Rules, 79 FR 63547 
(Oct. 24, 2014). At the time of the Sports Rules' repeal, they were 
codified at 47 CFR 76.111 (2014).
    On November 23, 2015, JSC filed a rate adjustment petition pursuant 
to Section 801(b)(2)(C) of the Copyright Act. In their June 22 Order, 
the Judges established a procedural schedule for ruling on the JSC 
petition. While the moving parties were unable to settle this matter 
during the voluntary negotiation period established by the June 22 
Order, they continued those negotiations and now agree that this 
proceeding should be terminated with the adoption of the proposed rule 
set forth in Exhibit A to the joint motion.

B. Scope of the Proposed Rule

    The proposed rule would require covered cable systems to pay a 
separate per-telecast royalty (a Sports Surcharge) in addition to the 
other royalties that that cable system must pay under Section 111 of 
the Copyright Act. Joint Motion at 3. The Sports Surcharge would amount 
to 0.025 percent of the cable system's ``gross receipts'' during the 
relevant semi-annual accounting period for the secondary transmission 
of each affected broadcast of a sports event, provided that all of the 
conditions of the proposed rule are satisfied. Thus, if a covered cable 
system made a secondary transmission of one affected broadcast, it 
would pay 0.025 percent of ``gross receipts'' during the relevant semi-
annual accounting period for that transmission; if it made secondary 
transmissions of two affected broadcasts, it would pay 0.025 percent of 
``gross receipts'' during the relevant semi-annual accounting period 
for each of those transmissions (or a total of 0.050 percent of its 
``gross receipts''). Id.
    Section 801(b)(2)(C) of the Act states that any rate adopted in 
this proceeding ``shall apply only to the affected television broadcast 
signals carried on those systems affected by the change.'' Furthermore, 
moving parties note that Section 801(b)(2)(C) authorizes the Judges to 
adjust only the royalty rates set forth in Section 111(d)(1)(B) of the 
Act. The moving parties also note that Section 111(d)(3)(A) of the Act 
permits the distribution of royalties only to copyright owners of 
distant signal ``non-network television programs.'' Joint Motion at 3-
4.
    The moving parties note that, consistent with the statutory 
mandates discussed above, the proposed rule, summarized below, limits 
the circumstances under which cable systems must pay the Sports 
Surcharge. Under the proposal:

    Covered Cable System. Only a ``covered cable system,'' as 
defined in the proposed rule, would be subject to the Sports 
Surcharge. That definition tracks the language of the former FCC 
Sports Rules, which applied only to a ``community unit'' located in 
whole or in part within a defined geographic area (``specified 
zone'') associated with a community in which a sports event occurs. 
See 47 CFR 76.111(a) (2014). The FCC has defined a ``community 
unit'' as: ``A cable television system, or portion of a cable 
television system, that operates or will operate within a separate 
and distinct community or municipal entity (including unincorporated 
communities within unincorporated areas and including single, 
discrete unincorporated areas).'' 47 CFR 76.5(dd) (2014). And it has 
defined ``specified zone'' as an area extending 35 miles from 
certain ``reference points'' in the FCC rules. 47 CFR 76.5(e) 
(2014). Consistent with Section 801(b)(2)(C) of the Act, only a 
covered cable system that, for purposes of the compulsory license is 
a ``Form 3'' system, i.e., one whose royalties are specified by 
Section 111(d)(1)(B), would be subject to the Sports Surcharge.
    Non-Network Programs. Only copyright owners of certain ``non-
network programs'' may receive Section 111 royalties. 17 U.S.C. 
111(d)(3)(A). Accordingly, a covered cable system must pay a Sports 
Surcharge only for the secondary transmission of distant signal 
``non-network programs'' within the meaning of 17 U.S.C. 
111(d)(3)(A).
    Sports Events. The Sports Surcharge would apply only to the 
carriage of eligible professional sports events and eligible 
collegiate sports events involving teams that are members of JSC 
and, in the case of eligible collegiate sports events, would be 
subject to a cap on the number of events involving a particular team 
that would be subject to the surcharge during any accounting period.
    Gross Receipts. The covered cable system would calculate the 
Sports Surcharge as a percentage of its ``gross receipts'' during 
the six-month accounting period in which the affected telecast or 
telecasts were carried. The term ``gross receipts'' has the same 
meaning as in 17 U.S.C. 111(d)(1)(B). Because Section 111 royalties 
are distributed only to copyright owners of certain distant signal 
programming (17 U.S.C. 111(d)(3)(A)), the covered cable system need 
not include in its gross receipts any revenues from subscribers who 
reside in the ``local service area'' of a broadcast station whose 
sports programming would otherwise have been subject to deletion 
under the former FCC Sports Rules. The term ``local service area'' 
is defined in 17 U.S.C. 111(f)(4). The Sports Rules also exempted 
from their scope community units (a) with fewer than 1,000 
subscribers (47 CFR 76.111(f) (2014)); (b) located outside the 
``specified zone'' of that community unit's local broadcast stations 
(id. Sec.  76.111(a)); and (c) in which the affected signal was 
carried prior to March 31, 1972 (id. Sec.  76.111(e)).

[[Page 24613]]

Accordingly, revenues derived from subscribers in the communities 
served by these community units also would be excluded in 
determining the amount of any Sports Surcharge.
    Notification. The former FCC Sports Rules required the deletion 
of certain distant signal sports programming only when the cable 
system received timely advance notice from the holder of the local 
broadcast rights. See 47 CFR 76.111(b) & (c) (2014). Accordingly, a 
covered cable system will be required to pay the Sports Surcharge 
only if it receives timely notice as required by those rules. An 
example of a notice that the moving parties believe contained the 
requisite information is attached as Exhibit B to the Joint Motion. 
Finally, in the case of advance notices pertaining to eligible 
collegiate sports events, such notice must be accompanied by 
evidence confirming that the event is one to which the Sports 
Surcharge applies.
    Effective Date. The moving parties agree that to facilitate a 
smooth transition, the surcharge will take effect as of January 1, 
2018.

    According to the moving parties, the royalty rate reflected in the 
proposed rule represents a negotiated compromise based upon current 
market and regulatory conditions as well as various other factors and 
does not represent the fair market value of any secondary transmission 
of a sports event. None of the moving parties believes that the 
proposed rule should be considered precedential in any way for any 
purpose. The moving parties recognize that the proposed rule, if 
adopted, may be reconsidered in 2020 and every five years thereafter. 
See 17 U.S.C. 804(b)(1)(B). The moving parties continue that if, for 
any reason, the Judges do not adopt the proposed rule, each of the 
moving parties reserves the right to demonstrate that the Judges should 
adopt a different rate adjustment to account for the FCC's repeal of 
its Sports Rules.

C. The Judges' Authority To Adopt the Proposed Rule

    According to the moving parties, a key Congressional objective 
underlying the Judges' rate-setting authority is the promotion of 
voluntary settlements rather than litigation. Joint Motion at 5, citing 
H.R. Rep. No. 108-408 at 24 (2004) (referring to the legislative policy 
of ``facilitating and encouraging settlement agreements for determining 
royalty rates''); id. at 30 (same). Consistent with that objective, 
Section 801(b)(7)(A) of the Copyright Act authorizes the Judges to 
accept a settlement reached by ``some or all of the participants'' in a 
rate proceeding ``at any time during the proceeding.'' 17 U.S.C. 
801(b)(7)(A). The moving parties note that the Judges need not conduct 
a ``full-fledged ratesetting'' before adopting a negotiated rate. Joint 
Motion at 5-6, citing H.R. Rep. No. 108-408 at 24 (2004). As the Judges 
have concluded:

    Section 801(b)(7)(A) of the Act is clear that the Judges have 
the authority to adopt settlements between some or all of the 
participants to a proceeding at any time during a proceeding so long 
as those that would be bound by those rates and terms are given an 
opportunity to comment. Requiring that the adoption of all proposed 
settlements wait until the conclusion of the proceeding would 
undercut the policy in Section 801(b)(7)(A) to promote negotiated 
settlements.

Digital Performance Right in Sound Recordings and Ephemeral Recordings, 
Docket No. 2014-CRB-0001-WR (2016-2020), 80 FR 58201, 58203 (Sept. 28, 
2015) (emphasis in original); accord, Digital Performance Right in 
Sound Recordings and Ephemeral Recordings, Docket No. 2014-CRB-0001-WR 
(2016-2020), 80 FR 59588, 59589 (Oct. 2, 2015).
    The Act requires that the Judges afford those who ``would be bound 
by the terms, rates or other determination'' in a settlement agreement 
``an opportunity to comment on the agreement.'' 17 U.S.C. 
801(b)(7)(A)(i). The moving parties note that the Copyright Royalty 
Board rules also contemplate that the Judges will ``publish the 
settlement in the Federal Register for notice and comment from those 
bound by the terms, rates, or other determination set by the 
agreement.'' 37 CFR 351.2(b)(2). The moving parties aver that the 
Judges must assess the ``reasonable[ness]'' of a voluntarily-negotiated 
rate only if participants to a proceeding who would be bound by the 
rate objected to it. Joint Motion at 6. The moving parties represent 
that they are the only parties participating in this proceeding, and 
they are urging the Judges to adopt the proposed Sports Surcharge. Id.
    Interested parties may comment and object to any or all of the 
proposed regulations contained in this notice. Such comments and 
objections must be submitted no later than June 20, 2017.
How To Submit Comments
    Interested members of the public must submit comments to only one 
of the following addresses. If not commenting by email or online, 
commenters must submit an original of their comments, five paper 
copies, and an electronic version on a CD.
    Email: crb@loc.gov; or
    Online: http://www.regulations.gov; or
    U.S. mail: Copyright Royalty Board, P.O. Box 70977, Washington, DC 
20024-0977; or
    Overnight service (only USPS Express Mail is acceptable): Copyright 
Royalty Board, P.O. Box 70977, Washington, DC 20024-0977; or
    Commercial courier: Address package to: Copyright Royalty Board, 
Library of Congress, James Madison Memorial Building, LM-403, 101 
Independence Avenue SE., Washington, DC 20559-6000. Deliver to: 
Congressional Courier Acceptance Site, 2nd Street NE. and D Street NE., 
Washington, DC; or
    Hand delivery: Library of Congress, James Madison Memorial 
Building, LM-401, 101 Independence Avenue SE., Washington, DC 20559-
6000.

List of Subjects in 37 CFR Part 387

    Copyright, Cable television, Royalties.

Proposed Regulations

    For the reasons set forth in the preamble, and under the authority 
of chapter 8, title 17, United States Code, the Copyright Royalty 
Judges propose to amend 37 CFR chapter III as follows:

PART 387--ADJUSTMENT OF ROYALTY FEE FOR CABLE COMPULSORY LICENSE

0
1. The authority citation for part 387 continues to read as follows:

    Authority: 17 U.S.C. 801(b)(2), 803(b)(6).

0
2. Amend Sec.  387.2 by:
0
a. Redesignating paragraph (e) as paragraph (f) and
0
b. Adding a new paragraph (e), to read as follows:


Sec.  387.2  Royalty fee for compulsory license for secondary 
transmission by cable systems.

* * * * *
    (e) Sports programming surcharge. Commencing with the first 
semiannual accounting period of 2018 and for each semiannual accounting 
period thereafter, in the case of a covered cable system filing Form 
SA3 as referenced in 37 CFR 201.17(d)(2)(ii) (2014), the royalty rate 
shall be, in addition to the amounts specified in paragraphs (a), (c) 
and (d) of this section, a surcharge of 0.025 percent of the covered 
cable system's gross receipts for the secondary transmission to 
subscribers of each live television broadcast of an eligible 
professional sports event or eligible collegiate sports event where the 
secondary transmission of such broadcast would have been subject to 
deletion under the FCC Sports Blackout Rule (47 CFR 76.111). For 
purposes of this paragraph:
    (1) The term ``cable system'' shall have the same meaning as in 17 
U.S.C. 111(f)(3);
    (2) A ``covered cable system'':

[[Page 24614]]

    (i) Is a ``community unit,'' as the comparable term is defined or 
interpreted in accordance with Sec.  76.5(dd) of the rules and 
regulations of the Federal Communications Commission in effect as of 
November 23, 2014, 47 CFR 76.5(dd) (2014);
    (ii) That is located in whole or in part within the 35-mile 
specified zone of a television broadcast station licensed to a 
community in which a sports event is taking place, provided that if 
there is no television broadcast station licensed to the community in 
which a sports event is taking place, the applicable specified zone 
shall be that of the television broadcast station licensed to the 
community with which the sports event or team is identified, or, if the 
event or local team is not identified with any particular community, 
the nearest community to which a television station is licensed; and
    (iii) Whose royalty fee is specified by 17 U.S.C. 111(d)(1)(B);
    (3) A ``television broadcast'' of a sports event must qualify as a 
``non-network television program'' within the meaning of 17 U.S.C. 
111(d)(3)(A);
    (4) An ``eligible professional sports event'' is a game involving 
teams that are members of the National Football League, Major League 
Baseball, the National Hockey League, the National Basketball 
Association, or the Women's National Basketball Association;
    (5) An ``eligible collegiate sports event'' is a game involving a 
football or men's basketball team that is a member of Division I of the 
National Collegiate Athletic Association on whose behalf the FCC Sports 
Blackout Rule (47 CFR 76.111) was invoked during the period from 
January 1, 2012 to November 23, 2014;
    (6) The term ``specified zone'' shall be defined as the comparable 
term is defined or interpreted in accordance with Section Sec.  76.5(e) 
of the rules and regulations of the Federal Communications Commission 
in effect as of November 23, 2014, 47 CFR 76.5(e) (2014);
    (7) The term ``gross receipts'' shall have the same meaning as in 
17 U.S.C. 111(d)(1)(B) and shall include all gross receipts of the 
covered cable system during the semiannual accounting period except 
those from the covered cable system's subscribers who reside in:
    (i) The local service area of the primary transmitter, as defined 
in 17 U.S.C. 111(f)(4);
    (ii) Any community where the cable system has fewer than 1000 
subscribers;
    (iii) Any community located wholly outside the specified zone 
referenced in paragraph (e)(1) above; and
    (iv) Any community where the primary transmitter was lawfully 
carried prior to March 31, 1972;
    (8) The term ``FCC Sports Blackout Rule'' refers to Sec.  76.111 of 
the rules and regulations of the Federal Communications Commission in 
effect as of November 23, 2014, 47 CFR76.111 (2014);
    (9) Subject to paragraph (e)(10) of this section, the surcharge 
will apply to the secondary transmission of the primary transmission of 
a live television broadcast of a sports event only where the holder of 
the broadcast rights to the sports event or its agent has given the 
covered cable system advance written notice regarding such secondary 
transmission as required by the former Sec.  76.111(b) of the rules and 
regulations of the Federal Communications Commission in effect as of 
November 23, 2014, 47 CFR 76.111(b) & (c) (2014); and
    (10) In the case of collegiate sports events:
    (i) The holder of the broadcast rights or its agent also must 
attest that the specific team on whose behalf the surcharge notice is 
given meets the eligibility condition specified in paragraph (e)(5) of 
this section and provide documentary evidence in support thereof; and
    (ii) The number of events involving a specific team as to which a 
covered cable system must pay the surcharge will be no greater than the 
largest number of events as to which the Sports Blackout Rule (47 CFR 
76.111) was invoked in a particular geographic area by such team during 
any one of the accounting periods occurring between January 1, 2012 and 
November 23, 2014.
* * * * *

    Dated: May 23, 2017.
Suzanne M. Barnett,
Chief Copyright Royalty Judge.
[FR Doc. 2017-10970 Filed 5-26-17; 8:45 am]
 BILLING CODE 1410-72-P