Broadcast Services; Children's Television; Cable Operators, 25-38 [04-28173]
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25
Federal Register / Vol. 70, No. 1 / Monday, January 3, 2005 / Rules and Regulations
the Clean Air Act. In this context, in the
absence of a prior existing requirement
for the State to use voluntary consensus
standards (VCS), EPA has no authority
to disapprove a SIP submission for
failure to use VCS. It would thus be
inconsistent with applicable law for
EPA, when it reviews a SIP submission,
to use VCS in place of a SIP submission
that otherwise satisfies the provisions of
the Clean Air Act. Thus, the
requirements of section 12(d) of the
National Technology Transfer and
Advancement Act of 1995 (15 U.S.C.
272 note) do not apply. This rule does
not impose an information collection
burden under the provisions of the
Paperwork Reduction Act of 1995 (44
U.S.C. 3501 et seq.).
The Congressional Review Act, 5
U.S.C. 801 et seq., as added by the Small
Business Regulatory Enforcement
Fairness Act of 1996, generally provides
that before a rule may take effect, the
agency promulgating the rule must
submit a rule report, which includes a
copy of the rule, to each House of the
Congress and to the Comptroller General
of the United States. EPA will submit a
report containing this rule and other
required information to the U.S. Senate,
the U.S. House of Representatives, and
the Comptroller General of the United
States prior to publication of the rule in
the Federal Register. A major rule
cannot take effect until 60 days after it
is published in the Federal Register.
This action is not a ‘‘major rule’’ as
defined by 5 U.S.C. 804(2).
Under section 307(b)(1) of the Clean
Air Act, petitions for judicial review of
this action must be filed in the United
States Court of Appeals for the
appropriate circuit by March 4, 2005.
Filing a petition for reconsideration by
the Administrator of this final rule does
not affect the finality of this rule for the
purposes of judicial review nor does it
extend the time within which a petition
for judicial review may be filed, and
shall not postpone the effectiveness of
such rule or action. This action may not
be challenged later in proceedings to
enforce its requirements. (See section
307(b)(2).)
List of Subjects in 40 CFR Part 52
Environmental protection, Air
pollution control, Intergovernmental
relations, Nitrogen dioxide, Ozone,
Reporting and recordkeeping
requirements, Volatile organic
compounds.
Dated: December 17, 2004.
Richard E. Greene,
Regional Administrator, Region 6.
I
40 CFR part 52 is amended as follows:
PART 52—[AMENDED]
1. The authority citation for part 52
continues to read as follows:
I
Authority: 42 U.S.C. 7401 et seq.
Subpart SS—Texas
2. In § 52.2270, the table in paragraph
(e) entitled ‘‘EPA approved
nonregulatory provisions and quasiregulatory measures’’ is amended by
adding one new entry to the end of the
table to read as follows:
I
§ 52.2270
*
Identification of plan.
*
*
(e) * * *
*
*
EPA APPROVED NONREGULATORY PROVISIONS AND QUASI-REGULATORY MEASURES IN THE TEXAS SIP
Name of SIP provision
Applicable geographic or
nonattainment area
*
Second 10-year maintenance plan for Victoria
County.
*
*
Victoria ...............................
State approval/submittal date
*
02/05/03
EPA approval date
*
*
01/03/05 [Insert FR page number where document begins].
3. Section 52.2275, Control strategy
and regulations: Ozone, paragraph (e) is
revised to read as follows:
FEDERAL COMMUNICATIONS
COMMISSION
§ 52.2275 Control strategy and
regulations: Ozone.
[MM Docket No. 00–167; FCC 04–221]
I
*
*
*
*
*
(e) Approval—The Texas Commission
on Environmental Quality (TCEQ)
submitted a revision to the Texas SIP on
February 18, 2003, concerning the
Victoria County 1-hour ozone
maintenance plan. This SIP revision
was adopted by TCEQ on February 5,
2003. This SIP revision satisfies the
Clean Air Act requirement, as amended
in 1990, for the second 10-year update
to the Victoria County 1-hour ozone
maintenance area.
[FR Doc. 04–28700 Filed 12–30–04; 8:45 am]
BILLING CODE 6560–50–P
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47 CFR Parts 73 and 76
Broadcast Services; Children’s
Television; Cable Operators
Federal Communications
Commission.
ACTION: Final rule.
AGENCY:
SUMMARY: This document resolves a
number of issues regarding the
obligation of television broadcasters to
protect and serve children in their
audience. The document addresses
matters related to two areas: the
obligation of television broadcast
licensees to provide educational and
informational programming for children
and the requirement that television
broadcast licensees protect children
from excessive and inappropriate
commercial messages. The Commission
goal is to provide television
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Comments
*
broadcasters with guidance regarding
their obligation to serve children as we
transition from an analog to a digital
television environment, and to improve
our children’s programming rules and
policies.
DATES: 47 CFR 73.670(a), (b) and (c) and
Note 2, 47 CFR 73.673, and 47 CFR
76.225(b) and (c) are effective February
1, 2005. 47 CFR 73.670, Note 1; 47 CFR
73.671 (c)(6), (c)(7), (d), (e), and (f) and
Note 2; and 47 CFR 76.225 (d) and Note
1 are effective January 1, 2006. 47 CFR
73.671(c)(5) and 47 CFR
73.3526(e)(11)(iii) contain information
collection requirements that have not
been approved by the Office of
Management and Budget (OMB). The
FCC will publish a document
announcing the effective date for these
sections.
ADDRESSES: Federal Communications
Commission, Washington, DC 20554.
FOR FURTHER INFORMATION CONTACT: Kim
Matthews, Media Bureau, (202) 418–
2120.
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Federal Register / Vol. 70, No. 1 / Monday, January 3, 2005 / Rules and Regulations
This is a
summary of the Federal
Communications Commission’s Report
and Order in MM Docket No. 00–167,
FCC 04–221, adopted September 9,
2004, and released November 23, 2004.
The complete text of this document is
available for inspection and copying
during normal business hours in the
FCC Reference Center, 445 12th Street,
SW., Washington, DC 20554. The
complete text may be purchased from
the Commission’s copy contractor,
Qualex International, 445 12th Street,
SW., Room CY–B402, Washington, DC
20554. The full text may also be
downloaded at: https://www.fcc.gov. To
request materials in accessible formats
for people with disabilities (braille,
large print, electronic file, audio
format), send an e-mail to
fcc504@fcc.gov or call the Consumer &
Governmental Affairs Bureau at (202)
418–0530 (voice), (202) 418–0432
(TTY).
Paperwork Reduction Act: This
document contains modified
information collections subject to the
Paperwork Reduction Act of 1995
(PRA), Public Law 104–13. It will be
submitted to the Office of Management
and Budget (OMB) for review under
section 3507(d) of the PRA. OMB, the
general public, and other Federal
agencies will be invited to comment on
the modified and proposed information
collection requirements contained in
this proceeding.
SUPPLEMENTARY INFORMATION:
Summary of the Report and Order and
Further Notice of Proposed Rule
Making
1. In this Report and Order we resolve
a number of issues raised in the Notice
of Proposed Rulemaking (65 FR 66951–
01, November 8, 2000) regarding the
obligation of television broadcasters to
protect and serve children in their
audience. We address matters related to
two areas: The obligation of television
broadcast licensees to provide
educational and informational
programming for children and the
requirement that television broadcast
licensees protect children from
excessive and inappropriate commercial
messages. For purposes of the
Children’s Television Act of 1990,
which provides the basis for these limits
on children’s television commercial
content, ‘‘the term ‘commercial
television broadcast licensee’ includes a
cable operator, as defined in section 602
of the Communications Act of 1934 (47
U.S.C. 522).’’ While some of the rules
and policies we adopt herein apply only
to digital broadcasters, others apply to
both analog and digital broadcasters as
well as cable operators. Our goals in
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resolving these issues are to provide
television broadcasters with guidance
regarding their obligation to serve
children as we transition from an analog
to a digital television environment, and
to improve our children’s programming
rules and policies.
2. First, we address the obligation of
digital television (‘‘DTV’’) broadcasters
to provide children’s educational and
informational programming and,
specifically, how that obligation applies
to DTV broadcasters that use the
multicast capability of their ATSC
digital service to broadcast multiple
program services. We adopt an approach
pursuant to which digital broadcasters
that choose to provide streams or hours
of free video programming in addition
to their required free over-the-air video
program service will have an increased
core programming benchmark roughly
proportional to the additional amount of
free video programming they choose to
provide. Second, for both analog and
digital broadcasters, we limit the
number of preemptions allowed under
our processing guideline to no more
than 10 percent of core programs in
each calendar quarter. A station that
fails to meet the processing guideline
because of excessive preemptions may
still receive staff-level approval of its
renewal application if it demonstrates
that it has aired a package of
educational and informational
programming, including specials, PSAs,
short-form programs, and regularly
scheduled non-weekly programs with a
significant purpose of educating and
informing children, that demonstrates a
commitment to educating and informing
children at least equivalent to airing the
amount of core programming indicated
by the processing guideline. Licensees
that do not qualify for staff level
approval will have their license renewal
applications referred to the Commission
where they will have an additional
opportunity to demonstrate compliance
with the CTA. Third, we amend our rule
regarding on-air identification of core
programming to require both analog and
digital broadcasters to identify such
programming with the same symbol, E/
I, which must be displayed throughout
the program in order for the program to
qualify as core educational
programming. Fourth, we clarify that
the children’s television commercial
limits and policies apply to all digital
video programming directed to children
ages 12 and under. Fifth, we interpret
the commercial time limits to require
that the display of Internet Web site
addresses during program material is
permitted as within the time limits only
if the Web site meets certain
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requirements, including the requirement
that it offer a substantial amount of bona
fide program-related or other
noncommercial content and is not
primarily intended for commercial
purposes. Sixth, we revise our
definition of ‘‘commercial matter’’ to
include promotions of television
programs or video programming
services other than children’s
educational and informational
programming. Educational and
Informational Programming.
Digital Core Children’s Programming
Processing Guideline
3. One of the questions posed in the
Notice is how the current three-hour
children’s core educational
programming processing guideline
should apply to a DTV broadcaster that
chooses to multicast. We asked if the
processing guideline should apply to
only one digital broadcasting program
stream, to more than one program
stream, or to all program streams the
broadcaster chooses to provide. We also
noted that DTV broadcasters may
choose to devote a portion of their
spectrum to either non-video services,
such as datacasting, or to subscription
video services available only to viewers
who pay a fee, consistent with the
requirement that they provide at least
one free, over-the-air video program
service to viewers. We asked whether
the guideline should apply only to free
broadcast services or also to services
offered for a fee, and to video services
only or also to non-video services.
Finally, we asked how we should take
into account the fact that DTV
broadcasters have the flexibility to vary
the amount and quality of broadcast
programming they offer throughout the
day. For example, a broadcaster could
air 4 SDTV channels from 8 a.m. to 3
p.m., switch to two higher definition
channels from 3 p.m. to 8 p.m., and
finish with one HDTV channel for
prime-time and late-night programming.
4. We have three main goals in
crafting children’s educational and
informational programming rules for
digital broadcasting. First, we want to
ensure that the needs of children
continue to be served ‘‘through the
licensee’s overall programming.’’ We
agree with children’s television
advocates who strongly support the
position that any increase in
multicasting channel capacity that
broadcasters choose to implement as a
result of digital technology should
translate to a commensurate increase in
the amount of educational programming
available to children. Second, we want
to provide broadcasters with flexibility
in meeting their children’s core
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Federal Register / Vol. 70, No. 1 / Monday, January 3, 2005 / Rules and Regulations
programming obligations to permit them
to explore the myriad potential uses of
their broadcast spectrum made possible
by digital technology. Third, we want to
address what has been identified by
many as a persistent problem in our
rules and policies implementing the
CTA: the continued lack of awareness
on the part of parents and others of the
availability of core programming. This
concern about lack of public awareness
of core programming applies to both the
analog and digital broadcast
environments.
5. The current 3 hours per week
processing guideline was adopted with
the one channel per broadcaster analog
model in mind. With the advent of
digital broadcasting and the
multicasting ability that technology
offers, a new method of quantifying the
current core programming guideline for
digital broadcasting is both necessary
and appropriate. We also believe that
whatever additional requirements we
impose should be as concrete and
quantifiable as possible to remove
uncertainty and facilitate enforcement.
6. We adopt today an approach
pursuant to which digital broadcasters
that choose to provide additional
channels or hours of free video
programming in addition to their
required free over-the-air video program
service will have an increased core
programming benchmark roughly
proportional to the additional amount of
free video programming they choose to
provide. This approach is similar to that
proposed by a number of commenters in
response to the NOI and the Notice. Our
revised guideline will work as follows.
Digital broadcasters will continue to be
subject to the existing three hours per
week core programming processing
guideline on their main program stream.
DTV broadcasters that choose to provide
additional streams or channels of free
video programming will, in addition,
have the following guideline applied to
the additional programming: 1⁄2 hour
per week of additional core
programming for every increment of 1 to
28 hours of free video programming
provided in addition to the main
program stream. Thus, digital
broadcasters providing between 1 and
28 hours per week of free video
programming in addition to their main
program stream will have a guideline of
1⁄2 hour per week of core programming
in addition to the 3 hours per week on
the main program stream. Digital
broadcasters providing between 29 and
56 hours per week of free video
programming in addition to their main
program stream will have a guideline of
1 hour per week of core programming in
addition to the 3 hours per week on the
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main program stream. Digital
broadcasters providing between 57 and
84 hours per week of free video
programming in addition to their main
program stream will have a guideline of
11⁄2 hours per week of core
programming in addition to the 3 hours
per week on the main program stream.
The guideline will continue to increase
in this manner for additional hours of
free video programming. These
benchmarks were derived by dividing
the total number of hours in the week
(168) by 6 (the number of 1⁄2 hour core
programming increments required
under our current guideline, as core
programs must be at least 30 minutes in
length), which equals 28. Thus, under
the revised guideline, for every
increment of 1 to 28 hours of additional
free video programming offered in
addition to the main digital program
stream, the broadcaster must air at least
an additional 1⁄2 hour of core
programming. Another way to look at
this is that for each full time stream of
additional free video programming (24
hours day 7 days per week), the licensee
must air an additional 3 hours per week
of core programming.
7. Although we encourage stations to
air more than an additional 1⁄2 hour per
week of core programming for every
increment of 28 hours of additional free
video programming, in order to receive
staff level approval of the CTA portion
of their license renewal application
under our revised processing guideline
digital broadcasters must air at least 1⁄2
hour of core educational children’s
programming for every increment of 1 to
28 hours of free video programming
provided in addition to the main
program stream. As under our current
processing guideline for the analog
channel, a licensee will continue to be
eligible for staff level approval if it
demonstrates that it has aired a package
of different types of educational and
informational programming that, while
containing somewhat less core
programming than indicated by the
revised guideline, demonstrates a level
of commitment to educating and
informing children at least equivalent to
airing the amount of programming
indicated by the guideline. In this
regard, specials, PSAs, short-form
programs, and regularly scheduled nonweekly programs with a significant
purpose of educating and informing
children may be counted toward the
processing guideline. Licensees that do
not meet these processing guidelines
will be referred to the Commission,
where they will have the opportunity to
demonstrate compliance with the CTA
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27
in the same manner as under our
current processing guideline.
8. To be considered core, the
programming must comply with all of
the requirements for core programming
specified in our rules: that is, it must
have serving the educational and
informational needs of children ages 16
and under as a significant purpose; it
must be aired between the hours of 7
a.m. and 10 p.m.; it must be a regularly
scheduled weekly program; it must be at
least 30 minutes in length; the
educational and informational objective
and the target child audience must be
specified in writing the licensee’s
Children’s Television Programming
Report; and instructions for listing the
program as educational/informational,
including an indication of the age group
for which the program is intended, must
be provided by the licensee to
publishers of program guides.
9. Our current 3 hours per week core
programming processing benchmark is
averaged over a six-month period in
order to provide broadcasters with
scheduling flexibility. We will also
average the revised core programming
processing benchmark to be applied to
DTV broadcasters over a six-month
period, thus providing some flexibility
for digital broadcasters. The revised
digital core programming guideline will
become effective one year after release
of this Report and Order.
10. We are concerned that digital
broadcasters do not simply replay the
same core programming in order to meet
our revised processing guideline,
particularly if broadcasters offer
multiple streams of free video
programming and thereby face a higher
core programming guideline. We
recognize, however, that to some degree
children can benefit from repeated
viewing of the same core program, as
the educational lesson or message is
reinforced. Accordingly, we will not
prohibit all repeats of core programming
by digital broadcasters under our
revised guideline, but will require that
at least 50 percent of core programming
not be repeated during the same week
to qualify as core. Under our current 3
hours per week processing guideline
that applies to the analog channel, we
allow repeats and reruns of core
programming to be counted toward
fulfillment of the guideline. We will
exempt from this requirement any
program stream that merely time shifts
the entire programming line-up of
another program stream. In addition,
during the digital transition, we will not
count as repeated programming core
programs that are aired on both the
analog station and a digital program
stream.
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Federal Register / Vol. 70, No. 1 / Monday, January 3, 2005 / Rules and Regulations
11. In order to receive staff level
approval of their license renewal
application under our revised core
programming processing guideline,
digital broadcasters will be required to
air at least three hours per week of core
programming on their main program
stream. To provide broadcasters with
flexibility in choosing how best to serve
their child audience, however, we will
permit digital broadcasters to air all of
their additional digital core
programming, beyond the 3 hour
baseline on the main digital program
stream, on one free digital video
channel or distribute it across multiple
free digital video channels, at their
discretion, as long as the stream/s on
which the core programming is aired
has comparable carriage on
multichannel video programming
distributors (‘‘MVPDs’’) as the stream
whose programming generates the core
programming obligation under the
revised processing guideline.
Educational and informational
programming aired on subscription
channels, however, will not be
considered core under our processing
guideline. In addition, the current three
hours per week core programming
processing guideline will continue to
apply to analog stations until the analog
channel is returned to the Commission
at the end of the digital transition. Core
programs aired on digital program
streams will not be considered in
evaluating whether a station has
complied with the core programming
processing guideline for its analog
channel.
12. We agree with those commenters
who argue that, in some cases, children
and parents may be best served by
having core programming available on a
channel that is devoted to programming
appropriate for child or family viewing
during all or part of the programming
day or week. We also agree that
requiring every programming stream to
carry core programming could
discourage broadcasters from
experimenting with innovative
multicasting services. If, for example,
alternative content streams are used to
directly expand the value of the main
stream through the broadcasting of
associated information or different
camera angles or the alternative streams
are used for low bit rate video services
such as a dedicated weather channel,
they may not be appropriate for the
carriage of children’s programming.
Moreover, we do not want to discourage
broadcasters from providing highly
specialized channels on which content
directed to children might depart from
the specialized focus. It is our
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expectation that broadcasters will
develop such programming services. In
the next three years, we intend to revisit
the issues addressed in this Report and
Order in another proceeding. At that
time, we will consider, among other
things, whether we should give
broadcasters who choose to multicast
more flexibility in terms of placement of
core programming.
13. The revised guideline discussed
above applies to digital broadcasters and
the digital programming they provide.
Up until the time that analog channels
are returned to the Commission, we will
continue to apply our current three
hours per week core children’s
programming processing guideline to
analog channels. Broadcasters will
continue to file, on a quarterly basis,
their Children’s Television
Programming Report, on FCC Form 398.
We will revise current FCC Form 398 to
permit broadcasters to report both
analog and digital core programming on
that form. Once the new form has been
approved for use, we will issue a Public
Notice informing broadcasters of the
availability of the form and the date on
which the revised form must begin to be
used in place of the current form. On
that date, reports will also be required
to include information about digital core
programming. As we have done in the
analog context, we will continue to
exempt noncommercial television
licensees from children’s programming
reporting requirements with respect to
their digital programming.
14. We also decline, at this time, to
require high definition, interactivity, or
other features made possible by digital
technology to enhance core
programming. We believe it would be
premature to impose any requirement
for use of technological advances in
children’s programming until
broadcasters have had more opportunity
to experiment with these features in
other programming. However, we
encourage broadcasters to provide high
definition educational and
informational programming for children
as well as educational interactive
features, to ensure that children benefit
from the capabilities of digital
technology. We agree with those
commenters who argue that use of such
features could improve the educational
potential of core programming.
15. Finally, we disagree with those
commenters that argue that the
Commission lacks legal authority to
impose new children’s educational and
informational programming
requirements. As noted above, digital
broadcasters are subject to the CTA’s
educational and informational
programming requirements. In the 1996
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Children’s Programming Report and
Order, we concluded that a safe harbor
processing guideline approach to
implementing the CTA is consistent
with both the language and the intent of
the statute. The revised quantitative
processing guideline we adopt today for
digital broadcasters is also consistent
with the CTA and the First Amendment.
In adopting the three hours per week
core programming processing guideline
for analog broadcasters, we concluded
that defining what qualifies as
programming ‘‘specifically designed’’ to
serve the educational needs of children
and giving broadcasters clear but
nonmandatory guidance on how to
guarantee compliance is a constitutional
means of giving effect to the CTA’s
programming requirement. The actions
we take today extend the current
processing guideline to digital
broadcasters and increase the guideline
only for broadcasters who choose to use
their digital capacity to air more free
video programming. Broadcasters
continue to retain wide discretion in
choosing the ways in which they will
meet their CTA obligations. Our new
guideline imposes reasonable
parameters on a broadcaster’s use of the
public airwaves and is narrowly tailored
to advance the government’s substantial,
and indeed compelling, interest in the
protection and education of America’s
children.
Preemption
16. Related to the issue of digital
broadcasters’ educational and
informational programming obligations
under the CTA is the issue of how we
will treat preemptions of core programs
by DTV broadcasters. To qualify as
‘‘core programming’’ for purposes of the
three-hour-per-week processing
guideline, the Commission requires that
a children’s program be ‘‘regularly
scheduled’’; that is, a core children’s
program must ‘‘be scheduled to air at
least once a week’’ and ‘‘must air on a
regular basis.’’ In adopting the current
educational programming rules, the
Commission stated that television series
typically air in the same time slot for 13
consecutive weeks, although some
episodes may be preempted for
programs such as breaking news or live
sports events. The Commission noted
that programming that is aired on a
regular basis is more easily anticipated
and located by viewers, and can build
loyalty that will improve its chance for
commercial success. The Commission
stated that it would leave to the staff to
determine, with guidance from the full
Commission as necessary, what
constitutes regularly scheduled
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programming and what level of
preemption is allowable.
17. We requested comment in the
Notice on whether the Commission’s
policies regarding preemption of core
programs should be revised in view of
the greater programming capacity that
will be available to DTV broadcasters.
We noted that the ability of DTV
broadcasters to multicast provides them
with the option of airing multiple
streams of programming
simultaneously, thus increasing their
flexibility to either avoid preempting
core programs or to reschedule such
programs to a regular ‘‘second home.’’
Given this capability, we asked if we
should fashion a rule defining clearly
the requirement that a ‘‘core’’ program
be ‘‘regularly scheduled,’’ including the
number of times a core program could
be preempted and still count toward the
three-hour-per-week processing
guideline, and the efforts that must be
made to reschedule and promote
preempted programs in order for these
programs to contribute toward the core
programming guideline. If we were to
adopt such a rule, we asked if we
should continue to exempt from the
requirement that core programs be
rescheduled core programs preempted
for breaking news. We also sought
comment on the kind of rescheduling
practices and promotion of rescheduled
programs that we could require from
digital broadcasters.
18. For both analog and digital
broadcasters, to be considered core
programming we will generally require
that a preempted core program be
rescheduled. In addition, we will
consider, in determining whether the
rescheduled program counts as a core
educational program, the reason for the
preemption, the licensee’s efforts to
promote the rescheduled program, the
time when the rescheduled program is
broadcast, and, as discussed below, the
station’s level of preemption of core
programming. We will continue to
exempt from the requirement that core
programs be rescheduled core programs
preempted for breaking news. Absent
clear evidence that broadcasters are
abusing this exemption, we intend to
rely on broadcasters’ journalistic
judgment regarding the necessity of
interrupting scheduled core
programming because of a news alert.
19. As a general matter, for digital
broadcasters we will not consider a core
program moved to the same time slot on
another of the station’s digital program
streams to be preempted as long as the
alternate program stream receives
MVPD carriage comparable to the
stream from which the program is being
moved and the station provides
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adequate on-screen information about
the move, including when and where
the program will air, on both the
original and the alternate program
stream. This policy applies only to
program moves from one digital stream
to another digital stream on the same
station. Thus, as long as viewers are
adequately notified of the move and the
program is moved to a program stream
that is accessible to a comparable
number of viewers, broadcasters may
use their multicasting capability to
avoid preempting core programming.
20. For both analog and digital
broadcasters, we will limit the number
of preemptions under our processing
guideline to no more than 10 percent of
core programs in each calendar quarter.
Each preemption beyond the 10 percent
limit will cause that program not to
count as core under the processing
guideline, even if the program is
rescheduled. We will exempt from this
preemption limit preemptions for
breaking news.
21. We believe that this preemption
limit will help parents and children to
locate core programming and to
anticipate when it will be aired. We
believe that most stations currently do
not preempt more than 10 percent of
core programs in each calendar quarter.
We also note that our processing
guideline is averaged over a six-month
period, which will provide broadcasters
with some scheduling flexibility. In
addition, a station that fails to meet the
processing guideline because of
excessive preemptions may still receive
staff-level approval of its renewal
application if it demonstrates that it has
aired a package of educational and
informational programming, including
specials, PSAs, short-form programs,
and regularly scheduled non-weekly
programs with a significant purpose of
educating and informing children, that
demonstrates a commitment to
educating and informing children at
least equivalent to airing the amount of
core programming indicated by the
processing guideline. Licensees that do
not qualify for staff level approval will
have their license renewal applications
referred to the Commission where they
will have an additional opportunity to
demonstrate compliance with the CTA.
Identification of Core Programming
22. As we stated in the NPRM, studies
of the effectiveness of our educational
programming requirements show a
continued lack of awareness on the part
of parents regarding the availability of
core programming. As one study
observed:
Information about E/I programs remains hard
for parents to find. Although commercial
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Fmt 4700
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29
broadcasters are consistently using E/I icons,
the on-air information is often brief and
difficult to identify. Printed listing services
do not carry the information. * * * Thus,
there is a serious lack of information for
parents about core educational and
informational offerings, mostly because the
popular press does not appear to be
interested in or have the capacity to publish
such information. Not surprisingly, only one
in seven parents is able to correctly identify
the meaning of the E/I symbol.
23. As we noted when we adopted the
current children’s educational
programming rules in 1996, parents can
increase the audience of an educational
program by encouraging their children
to watch the show, but can only do so
if they know in advance when the show
will air and that the show is
educational. The public information
initiatives adopted by the Commission
in 1996 were designed to maximize
public access to information about core
programming while minimizing the cost
to licensees. In adopting the current onair identification requirement, the
Commission noted that on-air identifiers
were likely to reach a larger audience
than information published in program
guides, at minimal cost to stations. We
continue to believe that on-air
identification of core programming is a
cost-effective means of ensuring that
core programming reaches the child
audience, but agree with those
commenters that argue that the use of
different identifiers by different
broadcasters is confusing parents and
impairing their ability to choose core
programming for their children.
24. Accordingly, we will amend our
rules regarding on-air identification of
core programming to require both
analog and digital broadcasters to
identify such programming with the
same symbol: E/I. We will also require
that this symbol be displayed
throughout the program in order for the
program to qualify as core. We believe
this change to our on-air identification
requirement will not prove onerous to
broadcasters, who already use on-screen
identifiers for core programs, and could
greatly improve the public’s ability to
recognize and locate core programs. We
note that broadcasters now display
icons and other on-screen information
with increasing frequency in many
kinds of programming, and the public is
increasingly used to seeing such
information displayed along with
program material. Broadcasters’
increasing voluntary use of onscreen
identifiers, such as network logos,
presumably reflects their judgment as to
the effectiveness of this technique in
communicating information. We believe
that broadcasters can display the E/I
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Federal Register / Vol. 70, No. 1 / Monday, January 3, 2005 / Rules and Regulations
icon in an unobtrusive manner that will
help parents and others identify core
programs without deterring potential
child viewers.
25. We will apply this revised on-air
identification requirement to both
commercial and noncommercial
broadcasters. Although we have
previously exempted noncommercial
licensees from the requirement that they
identify core programming, we believe
that requiring all broadcasters to use the
E/I symbol throughout the program to
identify core programming will help
reinforce viewer awareness of the
meaning of this symbol. We will,
however, continue to exempt
noncommercial television licensees
from the other public information
initiatives adopted in the 1996
Children’s Programming Report and
Order. Thus, noncommercial television
stations will not be required to prepare
and file quarterly Children’s Television
Programming Reports or to provide
information identifying programming
specifically designed to educate and
inform children to publishers of
program guides. As is our current
practice, we will require noncommercial
broadcast stations to maintain
documentation sufficient to show
compliance with the CTA’s
programming obligations at renewal
time in response to a challenge or to
specific complaints.
Commercial Limits
Application of Existing Commercial
Limits Rules and Policies to DTV
26. We sought comment in the Notice
on how the limits on the amount of
commercial matter in children’s
programming should apply in the digital
environment and how we should
interpret with respect to DTV
broadcasters the policies set forth in the
1974 Policy Statement on children’s
programming. We asked whether
children’s advertising limits and
policies should apply only to free overthe-air channels, or to all digital
channels, both fee and pay. We sought
comment specifically on the proposal by
CME, et al. that the Commission
prohibit all direct links to commercial
Web sites during children’s
programming. If we were to permit
certain kinds of commercial links
during children’s programs, we asked if
such links should be permitted to
appear during the program itself, or be
limited to appearing during
commercials adequately separated from
program material as required by our
separations policy.
27. We will apply the commercial
limits and policies, as clarified in
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today’s Order, to all digital video
programming directed to children ages
12 and under, whether that
programming is aired on a free or pay
digital stream. We note that the
commercial limits and policies
currently apply to cable operators and
DBS providers and that cable operators
are defined as ‘‘broadcast licensees’’ for
purposes of the commercial matter
limitations in the CTA. Therefore, the
application of such limits and policies
to pay broadcast channels provides for
consistent treatment of these program
delivery systems for purposes of
children’s advertising restrictions. We
agree with those commenters that argue
that the same concerns that led to
adoption of the advertising restrictions
in the 1974 Policy Statement and the
CTA—the unique vulnerability of
children as television viewers—apply
regardless of the channel that a child
viewer watches. Thus, any advertising
restrictions for children’s programming
should apply to all such programming,
regardless of the free or pay status of the
channel. This determination is both
consistent with and required by Section
336 of the Communications Act, which
states that the Commission ‘‘shall adopt
regulations that allow the holders of
[DTV] licenses to offer such ancillary
and supplementary services on
designated frequencies as may be
consistent with the public interest,
convenience and necessity.’’ Providing
programs intended for children that do
not comply with the advertising limits
or commercial policies is contrary to the
public interest because they could
expose children to excessive and
abusive advertising practices.
28. We are aware that some
broadcasters are currently displaying
Internet Web site addresses that appear
during children’s program material (for
example, in a crawl at the bottom of
screen) which raises the issue of how
the CTA commercial time limits should
apply. We are concerned that the
display of such addresses for Web sites
established solely for commercial
purposes in children’s programs is
inconsistent with our mandate under
the CTA to protect children, who are
particularly vulnerable to commercial
messages and incapable of
distinguishing advertising from program
material. This is a concern that arises
with respect to all broadcasters, both
analog and digital, and to cable
operators. Accordingly, we adopt a
proposal similar to that advanced by
Sesame Workshop with respect to this
display of commercial Web site
information in children’s programs.
Specifically, we will interpret the CTA
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commercial time limits to require that,
with respect to programs directed to
children ages 12 and under, the display
of Internet Web site addresses during
program material is permitted as within
the CTA limitations only if the Web site:
(1) Offers a substantial amount of bona
fide program-related or other
noncommercial content; (2) is not
primarily intended for commercial
purposes, including either e-commerce
or advertising; (3) the Web site’s home
page and other menu pages are clearly
labeled to distinguish the
noncommercial from the commercial
sections; and (4) the page of the Web
site to which viewers are directed by the
Web site address is not used for ecommerce, advertising, or other
commercial purposes (e.g., contains no
links labeled ‘‘store’’ and no links to
another page with commercial material).
29. For Web sites meeting these
requirements, we will not limit the
amount of time that the Web site
address may be displayed during
children’s programs. In addition, we
will permit the commercial portions of
Web sites that comply with these
requirements to sell or advertise
products associated with the related
television program. Because we require
that permissible Web sites clearly
separate the commercial portions of the
site from the site’s other content, we
believe that children will be adequately
protected from program-related
merchandise sales. Because of the
unique vulnerability of young children
to host-selling, however, we will
prohibit the display of Web site
addresses in children’s programs when
the site uses characters from the
program to sell products or services.
This restriction on Web sites that use
host-selling applies to Web site
addresses displayed both during
program material and during
commercial material. We do not impose
other restrictions at this time on the use
of Web site addresses displayed only
during commercials aired in children’s
programs.
30. We believe that this approach to
the display of Web site addresses in
programs directed to children ages 12
and under fairly balances the interest of
all broadcasters in exploring the
potential uses of the Internet in
connection with their children’s
programs with our mandate to protect
children from over commercialization.
We will require a broadcaster that
chooses to air children’s programs
displaying Web site addresses during
program material to certify, as part of its
certification in its license renewal
application of compliance with the
commercial limits on children’s
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programming, that it has also complied
with the requirements concerning the
display of Web site addresses in such
programming. In addition, these
broadcasters will be required to
maintain in their public inspection file,
until final action has been taken on the
station’s next license renewal
application, records sufficient to
substantiate the station’s certification of
compliance with the restrictions on Web
site addresses in programs directed to
children ages 12 and under. Cable
operators airing children’s programming
must maintain records sufficient to
verify compliance with these new rules
and make such records available to the
public. Such records must be
maintained by cable operators for a
period sufficient to cover the limitations
period specified in 47 U.S.C.
503(b)(6)(B).
31. With respect to the appearance of
direct, interactive, links to commercial
Internet sites in children’s
programming, we agree with those
commenters that express concern that
prohibiting such links at least at this
stage in the digital transition is
premature and unnecessary and could
hamper the ability of broadcasters to
experiment with potential uses of
interactive capability in children’s
programming. There is little if any use
of direct Internet connectivity today in
television programming of the type that
was contemplated when the Notice in
this proceeding was issued.
Accordingly, we find that it would be
premature and unduly speculative to
attempt to regulate such direct
connectivity at this time. We agree that
direct links to Web sites with programrelated material could provide
beneficial educational and
informational content in children’s
programs and do not wish to place
unnecessary barriers in the way of
technical developments in this area that
may take place.
32. We encourage broadcasters to
experiment with the capabilities digital
television offers by developing
interactive services that can be used to
enhance the educational value of
children’s programming. With the
benefits of interactivity, however, come
potential risks that children will be
exposed to additional commercial
influences. We therefore seek comment
in the Further Notice of Proposed
Rulemaking that is part of this Report
and Order about what kinds of services
broadcasters and cable operators are
developing and what rules would be
appropriate to adopt. During the
pendancy of this proceeding, however,
we emphasize that broadcasters and
cable operators may not circumvent our
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rules on commercial limits through
technological developments in
interactivity. We encourage broadcasters
and cable operators to innovate and
experiment with new uses of interactive
technology that is educational in nature.
Definition of Commercial Matter
33. The Notice also invited
commenters to address a broader
question related to our restriction on the
duration of advertising during
children’s programming. This issue
arises with respect to both analog and
digital programming. We noted that,
under our current policy, the limitation
of 10.5 minutes per hour on weekends
and 12 minutes per hour on weekdays
applies to ‘‘commercial matter.’’
‘‘Commercial matter’’ is defined to
exclude certain types of program
interruptions from counting toward the
commercial limits, including
promotions of upcoming programs that
do not mention sponsors, public service
messages promoting not-for-profit
activities, and air-time sold for purposes
of presenting educational and
informational material. We observed in
the Notice that there is a significant
amount of time devoted to these types
of announcements in children’s
programming, thereby often reducing
the amount of time devoted to actual
program material to an amount far less
than the limitation on the duration of
commercial matter alone might suggest.
34. Accordingly, we invited comment
in the Notice on whether the
Commission should revise its definition
of ‘‘commercial matter’’ to include some
or all of these types of program
interruptions that do not currently
contribute toward the commercial
limits. We noted that some of the types
of program interruptions currently
excluded from the commercial limits
may contain information valuable to
children, such as promotion of
upcoming educational programs or
certain types of public service messages.
We asked if we should nonetheless
require that the time devoted to these
announcements count toward the
commercial limits to maximize the
amount of time devoted to program
material and reduce the time taken by
interruptions. We also asked whether, if
we were to revise our definition of
‘‘commercial matter,’’ we should apply
the new definition only to digital
broadcasting or also to analog
broadcasting. Finally, we asked
commenters to address whether our
ability to revise this definition is
restricted by the CTA and its legislative
history.
35. We will revise our definition of
‘‘commercial matter’’ to include
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31
promotions of television programs or
video programming services other than
children’s educational and
informational programming. This
revised definition will apply to analog
and digital television stations and to
cable operators. In the Further Notice of
Proposed Rulemaking that is part of this
Report and Order, we also propose to
apply this revised definition to Direct
Broadcast Satellite service providers.
Our goals in making this revision to the
definition of commercial matter are to
reduce the number of commercial
interruptions in children’s programming
and encourage the promotion of
educational and informational
programming for children.
36. We agree with those commenters
who argue that program promotions
should fall within the scope of
commercial matter because the station
broadcasting the promotion receives
significant consideration for airing these
advertisements: specifically, the
increased audiences for the promoted
program which presumably leads to
increased advertising rates for the
station. Reducing the number of
program promotions will help protect
children from overcommercialization of
programming consistent with the overall
intent of Congress in the CTA. At the
same time, exempting program
promotions for children’s educational
and informational programming may
encourage broadcasters to promote this
programming, thereby increasing
parents’ awareness of the programming
and possibly the program’s audience,
and thus extending the educational
benefit of the programming. As noted
above, there is evidence of a continued
lack of awareness on the part of parents
regarding the availability of core
programming. Our action may lead to
additional promotion of children’s
educational and informational
programming, including core
programming, thereby helping to
address this problem.
37. This decision is consistent with
the CTA and its legislative history. The
term ‘‘commercial matter’’ is not
defined in the CTA. The House and
Senate Reports state that the definition
should be ‘‘consistent’’ with the
definition used in former Form 303–C,
which defined commercial matter to
include, among other things,
promotional announcements by
commercial stations for or on behalf of
another commonly owned or controlled
broadcast station serving the same
community. Including program
promotions in the definition of
commercial matter is consistent with
this aspect of the definition of
commercial matter on former Form 303–
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C, as in either case the station is
receiving indirect consideration for the
program promotion.
Inappropriate Promotions in Children’s
Programming
38. Another issue raised both in the
Notice and in the NOI relates to the
airing, in programs viewed by children,
of promotions for other upcoming
programs that may be unsuitable for
children to watch because either the
promotions themselves or the programs
they refer to contain sexual or violent
content or inappropriate language. This
issue arises with respect to both analog
and digital broadcasting and applies not
only to educational and informational
children’s programming but to any
programming that is viewed by a
substantial number of children. We
sought comment in the Notice on steps
the Commission could take to ensure
that programs designed for children or
families do not contain promotions that
are unsuitable for children to watch. We
noted that the broadcast, cable, and
motion picture industries voluntarily
rate video programming that contains
sexual, violent, or other indecent
material and broadcast signals
containing these ratings so that these
programs can be screened by ‘‘V-Chip’’
technology available in television sets.
The ratings identify the age group for
which a particular program is suitable
and indicate when the program contains
violence, sexual content, or suggestive
or coarse language. We asked in the
Notice whether the ratings of programs
promoted by broadcasters should be
consistent with the ratings of the
program during which the promotions
run. We also asked whether we should
require that promotions themselves be
rated and encoded so they can be
screened by V-Chip technology, or that
promotions be rated and that programs
with a significant child audience
contain only promotions consistent with
the rating of the program in which they
appear.
39. In light of the consensus among
commenters that voluntary efforts rather
than Commission action are preferable
to ensure that age-inappropriate
promotions are not aired in children’s
programs, we will not take action on
this issue at this time. Instead, we urge
broadcasters to ensure that industry
mechanisms are in place and are used
effectively to prevent the airing of
promotions in children’s programs that
are inappropriate for child viewing. We
also urge the public to continue to
monitor promotions aired in children’s
programming and to notify us of
instances in which broadcasters air ageinappropriate promotions. If we receive
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Jkt 205001
information suggesting that ageinappropriate promotions have become
a systemic problem, we will revisit this
issue.
40. We agree with those commenters
that argue that DTV technical standards
should not foreclose the implementation
of changes to or improvements in the VChip system. We also believe that DTV
technical standards should not foreclose
the option of using V-Chip technology
to support multiple rating systems. In
our Report and Order in the Second
Periodic Review of the Commission’s
Rules and Policies Affecting the
Conversion to Digital Television, we
adopted rules to ensure that V-Chip
functionality is available in the digital
world. In that proceeding, we stated our
belief that the ability to modify the
content advisory rating system is
beneficial and required that television
receivers be able to process new ratings
should they be developed. We also
adopted standards that do not preclude
manufacturers from incorporating
additional blocking standards or
techniques into receivers, thereby
permitting manufacturers to develop VChip technology that can be used in
conjunction with additional ratings
systems.
41. We will not at this time adopt the
other V-Chip proposals advanced by
commenters. Nonetheless, we encourage
broadcasters to consider various ways of
improving V-Chip utility, including
making available in their programming
a link to a Web site where parents and
other viewers can get additional
information about program ratings and
the V-Chip, once such technology or
functionality is available to consumers.
We also encourage the broadcast, cable,
and motion picture industries to
consider whether any revisions to the
ratings system would make it more
accurate and easier to understand.
42. In our next periodic review of the
status of the digital transition, we plan
to address whether we should require
digital broadcasters to embed E/I
information in the core program stream
so that this information can be sought
by V-Chip or other technology. Given
the lack of information in the record of
this proceeding about how this
information would be used and the
potential benefits of this technology in
helping parents locate core
programming, and the potential costs
such a requirement would impose, we
do not address this issue today.
Future Proceedings
43. We intend to revisit the issues
addressed in this item in the next three
years and consider whether the
determinations made herein should be
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changed in light of technological
developments. In particular, we will
consider whether broadcasters should
be given more flexibility to determine
the program stream on which core
programming is placed.
44. In addition, we intend to issue a
Public Notice in the near future seeking
comment on whether broadcasters are
complying with the letter and intent of
the CTA in terms of, among other
things, the amount and quality of core
children’s programming being provided
and the extent of preemption of such
programming. The Commission staff
also intends to conduct a review of
broadcaster compliance with the CTA
and our rules and to issue a report on
the results of this review and the
comments filed in response to the
Public Notice. The Commission last
issued a report on compliance with the
CTA in 2001. The Commission plans to
conduct similar reviews and issue
similar reports on a regular basis
roughly every three years.
Effective Dates and Transition Period
45. Our revised policies and rules
regarding application of the commercial
limits and policies to digital
programming as well as those regarding
the display of Internet addresses in
analog and digital programming and in
programming aired by cable operators,
will become effective February 1, 2005.
We will begin to evaluate compliance
with these requirements in renewal
applications filed after that date. Thus,
the first renewal applications to which
these new requirements will be applied
are those required to be filed by April
1, 2005, by television stations located in
the states of Indiana, Kentucky, and
Tennessee. Licensee performance
during any portion of the renewal term
that predates February 1, 2005, will be
evaluated under the current rules and
policies and performance that post-dates
the rules will be judged under the new
provisions.
46. Our rules regarding on-air
identification of core programming will
become effective after approval by the
Office of Management and Budget
(‘‘OMB’’) under the Paperwork
Reduction Act of 1995 (‘‘PRA’’). Upon
OMB approval, we will issue a Public
Notice announcing the effective date of
this rule. The effective date will be no
earlier than February 1, 2005. Similarly,
we will issue a Public Notice
announcing when the revised FCC Form
398, also subject to OMB approval
under the PRA, will be available for use
by licensees and when licensees must
commence using the revised form to
report digital core programming.
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47. Our revised definition of
commercial matter will become effective
January 1, 2006. This transition period
will give programmers time to produce
sufficient children’s programming and
other material to include within
children’s programming that would not
be considered commercial matter.
Similarly, our revised safe harbor
processing guideline for digital
broadcasters will become effective
January 1, 2006. The limit on the
number of preemptions for digital
broadcasters under our processing
guideline to no more than 10 percent of
core programs in each calendar quarter
and the limit for digital broadcasters on
the number of repeats of core
programming to no more than 50
percent of core programming during the
same week will also become effective
January 1, 2006. These requirements
relate to the calculation of hours of core
programming under our revised
guideline and therefore should become
effective at the same time as the revised
guideline. In addition, to give analog
broadcasters time to come into
compliance with our rule limiting the
number of preemptions under the
current analog processing guideline to
no more than 10 percent of core
programs in each calendar quarter, we
will also delay the effective date of that
rule as applied to analog broadcasters
until January 1, 2006. We believe that
this transition period is appropriate to
give licensees time to develop
programming or to renegotiate or allow
expiration of existing program contracts
as necessary. Renewal applications filed
earlier than January 1, 2006, will be
evaluated for compliance with the CTA
based on our current rules and the
policies expressed in the 1996
Children’s Programming Report and
Order and the 1991 Report and Order,
as modified upon reconsideration.
License renewal applications filed after
January 1, 2006, will be evaluated to
determine whether broadcasters are
providing core programming using the
revised definition of commercial matter
and processing guideline adopted
herein and are complying with the
revised rules concerning preemption
and repeats of core programming. Thus,
the first renewal applications to which
these new requirements will be applied
are those required to be filed by
February 1, 2006, by stations located in
the states of Kansas, Nebraska, and
Oklahoma. Licensee performance during
any portion of the renewal term that
predates January 1, 2006, will be
evaluated under the current rules and
policies and performance that post-dates
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Jkt 205001
the new rules will be judged under the
new provisions.
Conclusion
48. We adopt this Report and Order
and Further Notice of Proposed Rule
Making to address the obligation of DTV
broadcasters under the CTA to air
educational programming for children
and to protect children from excessive
and inappropriate commercial
messages. Our goals are to ensure that
parents and children benefit from
broadcasters’ use of digital technology
to provide multiple broadcast streams
and to permit broadcasters flexibility to
explore the potential uses of the
broadcast spectrum made possible by
digital technology, including the use of
direct Web site links in children’s
programming, consistent with the
mandate of the CTA. We believe that the
rules and policies adopted herein
further the mandate of the CTA that
broadcast television fulfill its potential
to teach the nation’s children and that
broadcasters protect children from over
commercialization.
VII. Administrative Matters
49. This Report and Order contains
new or modified information
collection(s) subject to the Paperwork
Reduction Act of 1995 (PRA), Public
Law 104–13. It will be submitted to the
Office of Management and Budget
(OMB) for review under Section 3507(d)
of the PRA. OMB, the general public,
and other Federal agencies are invited to
comment on the new or modified
information collection(s) contained in
this proceeding. Written comments by
the public on the proposed new and
modified information collection(s) are
due 60 days from date of publication of
this Report and Order in the Federal
Register. In addition to filing comments
with the Secretary, a copy of any
comments on the information
collection(s) contained herein should be
submitted to Cathy Williams, Federal
Communications Commission, Room 1–
C823, 445 12th Street, SW., Washington,
DC 20554, or via the Internet to Cathy
Williams@fcc.gov, and to Kristy L.
LaLonde, OMB Desk Officer, Room
10234 NEOB, 725 17th Street, NW.,
Washington, DC 20503, or via the
Internet to KristyL.
LaLonde@omb.eop.gov, or via fax at
202–395–5167.
50. As required by the Regulatory
Flexibility Act,1 the Commission has
prepared a Final Regulatory Flexibility
Analysis (‘‘FRFA’’) relating to this
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1 See
5 U.S.C. § 604.
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33
Report and Order. The FRFA is set forth
below.
51. The Commission will send a copy
of the Report and Order in a report to
be sent to Congress and the General
Accounting Office pursuant to the
Congressional Review Act, see 5 U.S.C.
801(a)(1)(A).
52. For additional information on this
proceeding, please contact Kim
Matthews, Policy Division, Media
Bureau at (202) 418–2154.
Final Regulatory Flexability Analysis
53. As required by the Regulatory
Flexibility Act of 1980, as amended
(‘‘RFA’’), an Initial Regulatory
Flexibility Analysis (‘‘IRFA’’) was
incorporated in the Notice of Proposed
Rule Making (‘‘NPRM’’). The
Commission sought written public
comment on the proposals in the Notice,
including comment on the IRFA. One
comment was received on the IRFA.
This Final Regulatory Flexibility
Analysis (‘‘FRFA’’) conforms to the
RFA.
I. Need for, and Objectives of, the Report
and Order
The purpose of this proceeding is to
determine how the existing children’s
educational television programming
obligations and limitations on
advertising in children’s programs
should be interpreted and adapted to
apply to digital television broadcasting
in light of the new capabilities made
possible by that technology. First, we
address the obligation of digital
television (‘‘DTV’’) broadcasters to
provide children’s educational and
informational programming and,
specifically, how that obligation applies
to DTV broadcasters that use the
multicast capability of their ATSC
digital service to broadcast multiple
program services. We adopt an approach
pursuant to which digital broadcasters
that choose to provide streams or hours
of free video programming in addition
to their required free over-the-air video
program service will have an increased
core programming benchmark roughly
proportional to the additional amount of
free video programming they choose to
provide. Second, for both analog and
digital broadcasters, we limit the
number of preemptions allowed under
our processing guideline to no more
than 10 percent of core programs in
each calendar quarter. Third, we amend
our rule regarding on-air identification
of core programming to require both
analog and digital broadcasters to
identify such programming with the
same symbol, E/I, which must be
displayed throughout the program in
order for the program to qualify as core
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Federal Register / Vol. 70, No. 1 / Monday, January 3, 2005 / Rules and Regulations
educational programming. Fourth, we
clarify that the children’s television
commercial limits and policies apply to
all digital video programming directed
to children ages 12 and under. Fifth, we
interpret the commercial time limits to
require that the display of Internet Web
site addresses during program material
is permitted as within the time limits
only if the Web site meets certain
requirements, including the requirement
that it offer a substantial amount of bona
fide program-related or other
noncommercial content and is not
primarily intended for commercial
purposes. Sixth, we revise our
definition of ‘‘commercial matter’’ to
include promotions of television
programs or video programming
services other than children’s
educational and informational
programming. Finally, we seek
comment on several additional
proposals concerning the children’s
programming commercial limits and
indicate our intention to issue a Public
Notice in the near future seeking
comment on broadcaster compliance
with the Children’s Television Act of
1990 (‘‘CTA’’). Our objectives in
resolving these issues are to provide
television broadcasters with guidance
regarding their obligation to serve
children as we transition from an analog
to a digital television environment and
to improve our children’s programming
rules and policies.
II. Summary of Significant Issues Raised
by Public Comments in Response to the
IRFA
The U.S. Small Business
Administration (‘‘SBA’’) filed the only
comment in this proceeding responding
to the IRFA. According to the SBA, the
IRFA does not satisfy the requirements
of the RFA, as it does not describe many
of the ‘‘compliance requirements’’
contained in the NPRM and their impact
on small firms. The SBA also argues that
the IRFA does not discuss significant
alternatives that would accomplish the
objectives while minimizing the
significant economic impact on small
entities. SBA states that it does not
question the Commission’s goals in this
proceeding, but instead asks that the
Commission seek ways to minimize the
burdens on small business while still
accomplishing its goals.
The NPRM described a number of
possible ways of applying the current
core programming processing guideline
to digital broadcasters. These proposals
were suggested by commenters
responding to the NOI in this docket. It
was not possible for the Commission to
develop detailed estimates of the cost of
adopting each of these proposals
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because the details of how any of the
proposals would be implemented were
not known. The NPRM sought comment
on these various proposals in large part
to determine, in the view of
broadcasters and others, which would
be the preferable means of adapting our
current rules. Commenters responding
to the NPRM address, among other
issues, the cost of the various proposals
and the advantages, from cost and other
perspectives, of the approach they
advocate. In determining what approach
to adopt, the Commission carefully
considered all of the comments,
particularly those offering less
burdensome means of accomplishing
our stated objectives. The approach
adopted in the Report and Order
attempts to balance the need to adapt
our current rules to the digital
environment and to improve our
children’s programming rules and
policies with the need to minimize costs
where possible and provide
broadcasters with flexibility to continue
to explore different ways of employing
digital technology.
III. Description and Estimate of the
Number of Small Entities to Which the
Rules Will Apply
The RFA directs agencies to provide
a description of and, where feasible, an
estimate of the number of small entities
that will be affected by the rules. The
RFA generally defines the term ‘‘small
entity’’ as having the same meaning as
the terms ‘‘small business,’’ ‘‘small
organization,’’ and ‘‘small governmental
jurisdiction’’ under section 3 of the
Small Business Act. In addition, the
term ‘‘small business’’ has the same
meaning as the term ‘‘small business
concern’’ under the Small Business Act.
A small business concern is one which:
(1) Is independently owned and
operated; (2) is not dominant in its field
of operation; and (3) satisfies any
additional criteria established by the
SBA.
Television Broadcasting. The Small
Business Administration defines a
television broadcasting station that has
no more than $12 million in annual
receipts as a small business. Business
concerns included in this industry are
those ‘‘primarily engaged in
broadcasting images together with
sound.’’ According to Commission staff
review of the BIA Publications, Inc.
Master Access Television Analyzer
Database as of May 16, 2003, about 814
of the 1,220 commercial television
stations in the United States have
revenues of $12 million or less. We
note, however, that, in assessing
whether a business concern qualifies as
small under the above definition,
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business (control) affiliations must be
included. Our estimate, therefore, likely
overstates the number of small entities
that might be affected by our action,
because the revenue figure on which it
is based does not include or aggregate
revenues from affiliated companies.
In addition, an element of the
definition of ‘‘small business’’ is that the
entity not be dominant in its field of
operation. We are unable at this time to
define or quantify the criteria that
would establish whether a specific
television station is dominant in its field
of operation. Accordingly, the estimate
of small businesses to which rules may
apply do not exclude any television
station from the definition of a small
business on this basis and are therefore
over-inclusive to that extent. Also as
noted, an additional element of the
definition of ‘‘small business’’ is that the
entity must be independently owned
and operated. We note that it is difficult
at times to assess these criteria in the
context of media entities and our
estimates of small businesses to which
they apply may be over-inclusive to this
extent.
There are also 380 non-commercial
TV stations in the BIA database. Since
these stations do not receive advertising
revenue, there are no revenue estimates
for these stations. We believe that
virtually all of these stations would be
considered ‘‘small businesses’’ given
that they are generally owned by noncommercial entities including local
schools and governments and, for the
most part, rely on public donations and
funding.
Cable Operators. The SBA has
developed a small business size
standard for cable and other program
distribution services, which includes all
such companies generating $12.5
million or less in revenue annually. The
Commission has developed, with SBA’s
approval, our own definition of a small
cable system operator for the purposes
of rate regulation. Under the
Commission’s rules, a ‘‘small cable
company’’ is one serving fewer than
400,000 subscribers nationwide. We last
estimated that there were 1,439 cable
operators that qualified as small cable
companies. Since then, some of those
companies may have grown to serve
over 400,000 subscribers, and others
may have been involved in transactions
that caused them to be combined with
other cable operators. Consequently, we
estimate that there are fewer than 1,439
small entity cable system operators that
may be affected by the decisions and
rules in this Report and Order.
The Communications Act, as
amended, also contains a size standard
for a small cable system operator, which
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Federal Register / Vol. 70, No. 1 / Monday, January 3, 2005 / Rules and Regulations
is ‘‘a cable operator that, directly or
through an affiliate, serves in the
aggregate fewer than 1% of all
subscribers in the United States and is
not affiliated with any entity or entities
whose gross annual revenues in the
aggregate exceed $250,000,000.’’ The
Commission has determined that there
are 68,500,000 subscribers in the United
States. Therefore, an operator serving
fewer than 685,000 subscribers shall be
deemed a small operator if its annual
revenues, when combined with the total
annual revenues of all of its affiliates, do
not exceed $250 million in the
aggregate. Based on available data, we
find that the number of cable operators
serving 685,000 subscribers or less totals
approximately 1,450. Although it seems
certain that some of these cable system
operators are affiliated with entities
whose gross annual revenues exceed
$250,000,000, we are unable at this time
to estimate with greater precision the
number of cable system operators that
would qualify as small cable operators
under the definition in the
Communications Act.
IV. Description of Projected Reporting,
Recordkeeping, and Other Compliance
Requirements
The Order adopts a revised core
children’s programming processing
guideline for digital television
broadcasters. Our revised guideline will
work as follows. Digital broadcasters
providing only one stream of free digital
video programming will continue to be
subject to the existing 3 hours per week
core programming processing guideline.
DTV broadcasters that choose to provide
additional streams or channels of free
video programming will, in addition,
have the following guideline applied to
the additional programming: 1⁄2 hour
per week of additional core
programming for every increment of 1 to
28 hours of free video programming
provided in addition to the main
program stream. Thus, digital
broadcasters providing between 1 and
28 hours per week of free video
programming in addition to their main
program stream will have a guideline of
1⁄2 hour per week of core programming
in addition to the 3 hours per week on
the main program stream. Digital
broadcasters providing between 29 and
56 hours per week of free video
programming in addition to their main
program stream will have a guideline of
1 hour per week of core programming in
addition to the 3 hours per week on the
main program stream. Digital
broadcasters providing between 57 and
84 hours per week of free video
programming in addition to their main
program stream will have a guideline of
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11⁄2 hours per week of core
programming in addition to the 3 hours
per week on the main program stream.
The guideline will continue to increase
in this manner for additional hours of
free video programming. In addition, for
digital broadcasters, we will require that
at least 50 percent of core programming
not be repeated during the same week
to qualify as core.
The revised guideline discussed
above applies to digital broadcasters and
the digital programming they provide.
Up until the time that analog channels
are returned to the Commission, we will
continue to apply our current 3 hours
per week core children’s programming
processing guideline to analog channels.
Broadcasters will continue to file, on a
quarterly basis, their Children’s
Television Programming Report, on FCC
Form 398. We will revise current FCC
Form 398 to permit broadcasters to
report both analog and digital core
programming on that form. Once the
new form has been approved for use, we
will issue a public notice informing
broadcasters of the availability of the
form and the date on which the revised
form must begin to be used in place of
the current form. On that date, reports
will also be required to include
information about digital core
programming. As we have done in the
analog context, we will continue to
exempt noncommercial television
licensees from children’s programming
reporting requirements with respect to
their digital programming.
As a general matter, for digital
broadcasters we will not consider a core
program moved to the same time slot on
another of the station’s digital program
streams to be preempted as long as the
alternate program stream receives
MVPD carriage comparable to the
stream from which the program is being
moved and the station provides
adequate on-screen information about
the move, including when and where
the program will air, on both the
original and the alternate program
stream. Thus, as long as viewers are
adequately notified of the move and the
program is moved to a program stream
that is accessible to a comparable
number of viewers, broadcasters may
use their multicasting capability to
avoid preempting core programming.
For both analog and digital broadcasters,
however, we will limit the number of
preemptions under our processing
guideline to no more than 10 percent of
core programs in each calendar quarter.
Each preemption beyond the 10 percent
limit will cause that program not to
count as core under the processing
guideline, even if the program is
rescheduled. We will exempt from this
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35
preemption limit preemptions for
breaking news.
In addition, the item amends our rules
regarding on-air identification of core
programming to require both analog and
digital broadcasters to identify such
programming with the same symbol: E/
I. We will also require that this symbol
be displayed throughout the program in
order for the program to qualify as core.
We will apply this revised on-air
identification requirement to both
commercial and noncommercial
broadcasters.
The item applies the commercial
limits and policies to all digital video
programming directed to children ages
12 and under, whether that
programming is aired on a free or pay
digital stream. In addition, we interpret
the CTA commercial time limits to
require that, for both analog and digital
broadcasters, with respect to programs
directed to children ages 12 and under,
the display of Internet Web site
addresses during program material is
permitted as within the CTA limitations
only if the Web site: (1) Offers a
substantial amount of bona fide
program-related or other noncommercial
content; (2) is not primarily intended for
commercial purposes, including either
e-commerce or advertising; (3) the Web
site’s home page and other menu pages
are clearly labeled to distinguish the
noncommercial from the commercial
sections; and (4) the page of the Web
site to which viewers are directed by the
Web site address is not used for ecommerce, advertising, or other
commercial purposes (e.g., contains no
links labeled ‘‘store’’ and no links to
another page with commercial material).
Finally, the item also revises our
definition of ‘‘commercial matter’’ to
include promotions of television
programs or video programming
services other than children’s
educational and informational
programming.
V. Steps Taken To Minimize Significant
Economic Impact on Small Entities and
Significant Alternatives Considered
Several steps were taken to minimize
significant impact on small entities. For
the many broadcasters simulcasting the
core programming offered on their
analog channel on a single digital
program stream and offering no other
digital free video programming,
compliance with the new processing
guideline should be automatic, as the
digital stream will simulcast the core
programming aired on the analog stream
and the current 3 hours/week guideline
will apply to both streams. For
broadcasters choosing to provide
additional streams of digital free video
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Federal Register / Vol. 70, No. 1 / Monday, January 3, 2005 / Rules and Regulations
programming, the revised guideline
establishes a series of graduated
benchmarks which increase the core
programming obligation in relation to
the number of hours of additional free
video programming offered by the
licensee. Thus, only those stations
choosing to provide additional free
video programming are subject to the
revised processing guideline. We
rejected the ‘‘pay or play’’ and ‘‘menu’’
alternatives to the revised guideline
largely because these approaches were
more administratively burdensome to
stations. Under the current and revised
guideline, stations have and will
continue to have the option of
sponsoring core programming on other
stations in the market.
In addition, for digital broadcasters
we require under the new processing
guideline that at least 50 percent of core
programming not be repeated during the
same week to qualify as core. However,
we exempt from this requirement any
program stream that merely time shifts
the entire programming line-up of
another program stream. Also, during
the transition, we will not count as
repeated programming core programs
that are aired on both the analog station
and a digital program stream.
For both analog and digital
broadcasters, however, the item limits
the number of preemptions under our
processing guideline to no more than 10
percent of core programs in each
calendar quarter. We exempt from this
preemption limit preemptions for
breaking news, however. We believe
that most stations currently do not
preempt more than 10 percent of core
programs in each calendar quarter. We
also note that our processing guideline
is averaged over a six-month period,
which will provide broadcasters with
some scheduling flexibility. In addition,
a station that fails to meet the
processing guideline because of
excessive preemptions may still receive
staff-level approval of its renewal
application if it demonstrates that it has
aired a package of educational and
informational programming, including
specials, PSAs, short-form programs,
and regularly scheduled non-weekly
programs with a significant purpose of
educating and informing children, that
demonstrates a commitment to
educating and informing children at
least equivalent to airing the amount of
core programming indicated by the
processing guideline. Licensees that do
not qualify for staff level approval will
have their license renewal applications
referred to the Commission where they
will have an additional opportunity to
demonstrate compliance with the CTA.
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Although we have previously
exempted noncommercial licensees
from the requirement that they identify
core programming, we believe that
requiring all broadcasters to use the E/
I symbol throughout the program to
identify core programming will help
reinforce viewer awareness of the
meaning of this symbol. We will,
however, continue to exempt
noncommercial television licensees
from the other public information
initiatives adopted in the 1996
Children’s Programming Report and
Order. Thus, noncommercial television
stations will not be required to prepare
and file quarterly Children’s Television
Programming Reports or to provide
information identifying programming
specifically designed to educate and
inform children to publishers of
program guides. As is our current
practice, we will require noncommercial
broadcast stations to maintain
documentation sufficient to show
compliance with the CTA’s
programming obligations at renewal
time in response to a challenge or to
specific complaints. We also decline to
require licensees to use high definition,
interactivity, or other features to
enhance core programming.
Although the Order limits the display
in children’s programming of Internet
Web site addresses to sites established
solely for commercial purposes, it does
not prohibit the display of all Web site
addresses. In addition, the item does not
prohibit direct Internet links in
children’s programs as several
commenters advocated. This approach
was adopted in an attempt to balance
the interest of digital broadcasters in
exploring the potential uses of
interactivity with our mandate to
protect children from over
commercialization. The Order also
declines to do more than urge voluntary
action on the part of broadcasters to
ensure that age-inappropriate
promotions are not aired in children’s
programs.
VI. Report to Congress
The Commission will send a copy of
the Report and Order, including this
FRFA, in a report to be sent to Congress
pursuant to the Congressional Review
Act, see 5 U.S.C. 801(a)(1)(A). In
addition, the Commission will send a
copy of the Report and Order, including
this FRFA, to the Chief Counsel for
Advocacy of the Small Business
Administration. A copy of the Report
and Order and FRFA (or summaries
thereof) will also be published in the
Federal Register. See 5 U.S.C. 604(b).
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List of Subjects
47 CFR Part 73
Television.
47 CFR Part 76
Cable television.
Federal Communications Commission.
Marlene H. Dortch,
Secretary.
Rule Changes
For the reasons discussed in the
preamble 47 CFR Parts 73 and 76 of the
Code of Federal Regulations are
amended as follows:
I
PART 73—RADIO BROADCAST
SERVICES
1. The authority citation for part 73
continues to read as follows:
I
Authority: 47 U.S.C. 154, 303, 334, and
336.
2. Section 73.670 is revised to read as
follows:
I
§ 73.670 Commercial limits in children’s
programs.
(a) No commercial television
broadcast station licensee shall air more
than 10.5 minutes of commercial matter
per hour during children’s programming
on weekends, or more than 12 minutes
of commercial matter per hour on
weekdays.
(b) The display of Internet Web site
addresses during program material is
permitted only if the Web site:
(1) Offers a substantial amount of
bona fide program-related or other
noncommercial content;
(2) Is not primarily intended for
commercial purposes, including either
e-commerce or advertising;
(3) The Web site’s home page and
other menu pages are clearly labeled to
distinguish the noncommercial from the
commercial sections; and
(4) The page of the Web site to which
viewers are directed by the Web site
address is not used for e-commerce,
advertising, or other commercial
purposes (e.g., contains no links labeled
‘‘store’’ and no links to another page
with commercial material).
(c) The display of Web site addresses
in children’s programs is prohibited
during both program material and
commercial material when the site uses
characters from the program to sell
products or services.
Note 1: Commercial matter means air time
sold for purposes of selling a product or
service and promotions of television
programs or video programming services
other than children’s educational and
informational programming.
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Federal Register / Vol. 70, No. 1 / Monday, January 3, 2005 / Rules and Regulations
Note 2: For purposes of this section,
children’s programming refers to programs
originally produced and broadcast primarily
for an audience of children 12 years old and
younger.
*
*
*
*
*
3. Section 73.671 is amended by
revising paragraphs (c)(5) and (c)(6),
adding paragraphs (c)(7), (d), (e), and (f),
and removing Note 2 to read as follows:
I
§ 73.671 Educational and informational
programming for children.
*
*
*
*
*
(c) * * *
(5) The program is identified as
specifically designed to educate and
inform children by the display on the
television screen throughout the
program of the symbol E/I;
(6) The educational and informational
objective and the target child audience
are specified in writing in the licensee’s
Children’s Television Programming
Report, as described in
§ 73.3526(e)(11)(iii); and
(7) Instructions for listing the program
as educational/informational, including
an indication of the age group for which
the program is intended, are provided
by the licensee to publishers of program
guides, as described in § 73.673.
(d) Until analog channels are returned
to the Commission, the Commission
will apply the following processing
guideline to analog stations in assessing
whether a television broadcast licensee
has complied with the Children’s
Television Act of 1990 (‘‘CTA’’) on its
analog channel. A licensee that has
aired at least three hours per week of
Core Programming (as defined in
paragraph (c) of this section and as
averaged over a six month period) will
be deemed to have satisfied its
obligation to air such programming and
shall have the CTA portion of its license
renewal application approved by the
Commission staff. A licensee will also
be deemed to have satisfied this
obligation and be eligible for such staff
approval if the licensee demonstrates
that it has aired a package of different
types of educational and informational
programming that, while containing
somewhat less than three hours per
week of Core Programming,
demonstrates a level of commitment to
educating and informing children that is
at least equivalent to airing three hours
per week of Core Programming. In this
regard, specials, PSAs, short-form
programs, and regularly scheduled nonweekly programs with a significant
purpose of educating and informing
children can count toward the three
hour per week processing guideline.
Licensees that do not meet these
processing guidelines will be referred to
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Jkt 205001
the Commission, where they will have
full opportunity to demonstrate
compliance with the CTA (e.g., by
relying in part on sponsorship of Core
educational/informational programs on
other stations in the market that
increases the amount of Core
educational and informational
programming on the station airing the
sponsored program and/or on special
nonbroadcast efforts which enhance the
value of children’s educational and
informational television programming).
(e) The Commission will apply the
following processing guideline to digital
stations in assessing whether a
television broadcast licensee has
complied with the Children’s Television
Act of 1990 (‘‘CTA’’) on its digital
channel(s).
(1) A digital television licensee
providing only one stream of free digital
video programming will be subject to
the 3 hour/week Core Programming
processing guideline discussed in
paragraph (d) of this section on that
channel; i.e., a licensee that has aired at
least three hours per week of Core
Programming (as defined in paragraph
(c) of this section and as averaged over
a six month period) on its main program
stream will be deemed to have satisfied
its obligation to air such programming
and shall have the CTA portion of its
license renewal application approved by
the Commission staff. A licensee will
also be deemed to have satisfied this
obligation and be eligible for such staff
approval if the licensee demonstrates
that it has aired a package of different
types of educational and informational
programming that, while containing
somewhat less than three hours per
week of Core Programming,
demonstrates a level of commitment to
educating and informing children that is
at least equivalent to airing three hours
per week of Core Programming. In this
regard, specials, PSAs, short-form
programs, and regularly scheduled nonweekly programs with a significant
purpose of educating and informing
children can count toward the three
hour per week processing guideline.
Licensees that do not meet these
processing guidelines will be referred to
the Commission, where they will have
full opportunity to demonstrate
compliance with the CTA (e.g., by
relying in part on sponsorship of Core
educational/informational programs on
other stations in the market that
increases the amount of Core
educational and informational
programming on the station airing the
sponsored program and/or on special
nonbroadcast efforts which enhance the
value of children’s educational and
informational television programming).
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37
(2)(i) A digital television licensee
providing streams of free digital video
programming in addition to its main
program stream will be subject to the
processing guideline described in
paragraph (e)(1) of this section on its
main program stream and to the
following guideline applied to the
additional programming: 1⁄2 hour per
week of additional Core Programming
(as defined in paragraph (c) of this
section and as averaged over a six
month period) for every increment of 1
to 28 hours of free video programming
provided in addition to the main
program stream. Thus, digital
broadcasters providing between 1 and
28 hours per week of free video
programming in addition to their main
program stream will have a guideline of
1⁄2 hour per week of core programming
in addition to the 3 hours per week on
the main program stream. Digital
broadcasters providing between 29 and
56 hours per week of free video
programming in addition to their main
program stream will have a guideline of
1 hour per week of core programming in
addition to the 3 hours per week on the
main program stream. Digital
broadcasters providing between 57 and
84 hours per week of free video
programming in addition to their main
program stream will have a guideline of
11⁄2 hours per week of core
programming in addition to the 3 hours
per week on the main program stream.
The guideline will continue to increase
in this manner for additional hours of
free video programming.
(ii) Broadcasters providing more than
one stream of free digital video
programming may air all of their
additional core programming, apart
from the 3 hours of core programming
that must be aired on the main program
stream, on one free video channel, or
distribute it across multiple free video
channels, at their discretion, as long as
the stream on which the core
programming is aired has comparable
MVPD carriage as the stream whose
programming generates the core
programming obligation under the
processing guideline described in
paragraph (e)(2)(i) of this section.
(3) For purposes of the guideline
described in paragraphs (e)(1) and (e)(2)
of this section at least 50 percent of core
programming cannot be repeated during
the same week to qualify as core. This
requirement does not apply to any
program stream that merely time shifts
the entire programming line-up of
another program stream and, during the
digital transition, to core programs aired
on both the analog station and a digital
program stream.
E:\FR\FM\03JAR1.SGM
03JAR1
38
Federal Register / Vol. 70, No. 1 / Monday, January 3, 2005 / Rules and Regulations
(f) No more than 10 percent of Core
Programs may be preempted in each
calendar quarter to qualify as Core
Programming.
*
*
*
*
*
§ 73.673
[Amended]
4. Section 73.673 is amended by
removing and reserving paragraph (b).
I 5. Section 73.3526 is amended by
revising paragraph (e)(11)(iii) to read as
follows:
I
§ 73.3526 Local public inspection file of
commercial stations.
(e) * * *
(11) * * *
(iii) Children’s television
programming reports. For commercial
TV broadcast stations, both analog and
digital, on a quarterly basis, a completed
Children’s Television Programming
Report (‘‘Report’’), on FCC Form 398,
reflecting efforts made by the licensee
during the preceding quarter, and efforts
planned for the next quarter, to serve
the educational and informational needs
of children. The Report for each quarter
is to be placed in the public inspection
file by the tenth day of the succeeding
calendar quarter. By this date, a copy of
the Report for each quarter is also to be
filed electronically with the FCC. The
Report shall identify the licensee’s
educational and informational
programming efforts, including
programs aired by the station that are
specifically designed to serve the
educational and informational needs of
children, and it shall explain how
programs identified as Core
Programming meet the definition set
forth in § 73.671(c). The Report shall
include the name of the individual at
the station responsible for collecting
comments on the station’s compliance
with the Children’s Television Act, and
it shall be separated from other
materials in the public inspection file.
The Report shall also identify the
program guide publishers to which
information regarding the licensee’s
educational and informational
programming was provided as required
in § 73.673, as well as the station’s
license renewal date. These Reports
shall be retained in the public
inspection file until final action has
been taken on the station’s next license
renewal application. Licensees shall
publicize in an appropriate manner the
existence and location of these Reports.
*
*
*
*
*
PART 76—MULTICHANNEL VIDEO
AND CABLE TELEVISION SERVICE
6. The authority citation for part 76
continues to read as follows:
I
VerDate jul<14>2003
14:40 Dec 30, 2004
Jkt 205001
Authority: 47 U.S.C. 151, 152, 153, 154,
301, 302, 303, 303a, 307, 308, 309, 312, 317,
325, 338, 339, 503, 521, 522, 531, 532, 533,
534, 535, 536, 537, 543, 544, 544a, 545, 548,
549, 552, 554, 556, 558, 560, 561, 571, 572,
and 573.
ACTION:
Direct final rule.
SUMMARY: The Department of Health and
Human Services is amending its
acquisition regulation (HHSAR) for the
purpose of making administrative and
I 7. Section 76.225 is amended by
editorial changes to reflect
revising paragraph (b) and Note 1 and by organizational title changes resulting
adding paragraphs (c) and (d) to read as
from Office of the Secretary (OS) and
follows:
Operating Division (OpDiv)
reorganizations; updating and removing
§ 76.225 Commercial limits in children’s
outdated references; providing
programs.
procedural guidance for reporting
*
*
*
*
*
violations of the Procurement Integrity
(b) The display of Internet Web site
Act; assigning unique document
addresses during program material is
numbers for contracts and task orders,
permitted only if the Web site:
in accordance with an Office of
(1) Offers a substantial amount of
Management and Budget Memorandum
bona fide program-related or other
dated August 6, 2003; adding a new
noncommercial content;
training requirement for HHS project
(2) Is not primarily intended for
officers; adding the terms ‘‘veterancommercial purposes, including either
owned’’ and ‘‘service-disabled veterane-commerce or advertising;
owned’’ to describe small business
(3) The Web site’s home page and
categories consistent with the Federal
other menu pages are clearly labeled to
distinguish the noncommercial from the Acquisition Regulation (FAR);
permitting a total of basic and option
commercial sections; and
periods of up to ten years for all service
(4) The page of the Web site to which
contracts not subject to the Service
viewers are directed by the Web site
Contract Act or other statutory
address is not used for e-commerce,
requirements; adding the Choice of Law
advertising, or other commercial
purposes (e.g., contains no links labeled (Overseas) clause in solicitations and
contracts when contract performance
‘‘store’’ and no links to another page
will be outside the United States, its
with commercial material).
possessions, and Puerto Rico, except as
(c) The display of Web site addresses
otherwise provided in a government-toin children’s programs is prohibited
government agreement; removing the
during both program material and
reference to the Department’s General
commercial material when the site uses
Administration Manual with respect to
characters from the program to sell
major system acquisitions; deleting
products or services.
unconstitutional and unenforceable
(d) This rule shall not apply to
programs aired on a broadcast television portions of the Confidentiality of
Information clause resulting from the
channel which the cable operator
outcome of Board of Trustees of Leland
passively carries, or to access channels
Stanford Junior Univ. v. Sullivan, and
over which the cable operator may not
exercise editorial control, pursuant to 47 providing current references with
respect to assurances and regulations
U.S.C. 531(e) and 532(c)(2).
governing the protection of human
Note 1 to § 76.225: Commercial matter
subjects. HHS is issuing a direct final
means air time sold for purposes of selling
rule for this action because HHS expects
a product or service and promotions of
there will be no significant adverse
television programs or video programming
comments on the rule.
services other than children’s educational
and informational programming.
*
*
*
*
[FR Doc. 04–28173 Filed 12–30–04; 8:45 am]
BILLING CODE 6712–01–P
DEPARTMENT OF HEALTH AND
HUMAN SERVICES
Office of the Secretary
48 CFR Chapter 3
Acquisition Regulation
Department of Health and
Human Services (HHS).
AGENCY:
PO 00000
Frm 00036
Fmt 4700
Sfmt 4700
This direct final rule will
become effective March 4, 2005, unless
significant adverse comments are
received by February 2, 2005. If adverse
comment is received, HHS will publish
a timely withdrawal of the rule in the
Federal Register.
DATES:
*
You may submit comments
by either of the following methods: EMail: Tracey.Mock@hhs.gov or by mail
to: Tracey Mock, DHHS, OS, ASAM,
Office of Acquisition Management and
Policy, 200 Independence Ave., SW.,
Room 324E, Washington, DC 20201.
Please state ‘‘48 CFR 3’’ on the subject
line.
ADDRESSES:
E:\FR\FM\03JAR1.SGM
03JAR1
Agencies
[Federal Register Volume 70, Number 1 (Monday, January 3, 2005)]
[Rules and Regulations]
[Pages 25-38]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 04-28173]
=======================================================================
-----------------------------------------------------------------------
FEDERAL COMMUNICATIONS COMMISSION
47 CFR Parts 73 and 76
[MM Docket No. 00-167; FCC 04-221]
Broadcast Services; Children's Television; Cable Operators
AGENCY: Federal Communications Commission.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: This document resolves a number of issues regarding the
obligation of television broadcasters to protect and serve children in
their audience. The document addresses matters related to two areas:
the obligation of television broadcast licensees to provide educational
and informational programming for children and the requirement that
television broadcast licensees protect children from excessive and
inappropriate commercial messages. The Commission goal is to provide
television broadcasters with guidance regarding their obligation to
serve children as we transition from an analog to a digital television
environment, and to improve our children's programming rules and
policies.
DATES: 47 CFR 73.670(a), (b) and (c) and Note 2, 47 CFR 73.673, and 47
CFR 76.225(b) and (c) are effective February 1, 2005. 47 CFR 73.670,
Note 1; 47 CFR 73.671 (c)(6), (c)(7), (d), (e), and (f) and Note 2; and
47 CFR 76.225 (d) and Note 1 are effective January 1, 2006. 47 CFR
73.671(c)(5) and 47 CFR 73.3526(e)(11)(iii) contain information
collection requirements that have not been approved by the Office of
Management and Budget (OMB). The FCC will publish a document announcing
the effective date for these sections.
ADDRESSES: Federal Communications Commission, Washington, DC 20554.
FOR FURTHER INFORMATION CONTACT: Kim Matthews, Media Bureau, (202) 418-
2120.
[[Page 26]]
SUPPLEMENTARY INFORMATION: This is a summary of the Federal
Communications Commission's Report and Order in MM Docket No. 00-167,
FCC 04-221, adopted September 9, 2004, and released November 23, 2004.
The complete text of this document is available for inspection and
copying during normal business hours in the FCC Reference Center, 445
12th Street, SW., Washington, DC 20554. The complete text may be
purchased from the Commission's copy contractor, Qualex International,
445 12th Street, SW., Room CY-B402, Washington, DC 20554. The full text
may also be downloaded at: https://www.fcc.gov. To request materials in
accessible formats for people with disabilities (braille, large print,
electronic file, audio format), send an e-mail to fcc504@fcc.gov or
call the Consumer & Governmental Affairs Bureau at (202) 418-0530
(voice), (202) 418-0432 (TTY).
Paperwork Reduction Act: This document contains modified
information collections subject to the Paperwork Reduction Act of 1995
(PRA), Public Law 104-13. It will be submitted to the Office of
Management and Budget (OMB) for review under section 3507(d) of the
PRA. OMB, the general public, and other Federal agencies will be
invited to comment on the modified and proposed information collection
requirements contained in this proceeding.
Summary of the Report and Order and Further Notice of Proposed Rule
Making
1. In this Report and Order we resolve a number of issues raised in
the Notice of Proposed Rulemaking (65 FR 66951-01, November 8, 2000)
regarding the obligation of television broadcasters to protect and
serve children in their audience. We address matters related to two
areas: The obligation of television broadcast licensees to provide
educational and informational programming for children and the
requirement that television broadcast licensees protect children from
excessive and inappropriate commercial messages. For purposes of the
Children's Television Act of 1990, which provides the basis for these
limits on children's television commercial content, ``the term
`commercial television broadcast licensee' includes a cable operator,
as defined in section 602 of the Communications Act of 1934 (47 U.S.C.
522).'' While some of the rules and policies we adopt herein apply only
to digital broadcasters, others apply to both analog and digital
broadcasters as well as cable operators. Our goals in resolving these
issues are to provide television broadcasters with guidance regarding
their obligation to serve children as we transition from an analog to a
digital television environment, and to improve our children's
programming rules and policies.
2. First, we address the obligation of digital television (``DTV'')
broadcasters to provide children's educational and informational
programming and, specifically, how that obligation applies to DTV
broadcasters that use the multicast capability of their ATSC digital
service to broadcast multiple program services. We adopt an approach
pursuant to which digital broadcasters that choose to provide streams
or hours of free video programming in addition to their required free
over-the-air video program service will have an increased core
programming benchmark roughly proportional to the additional amount of
free video programming they choose to provide. Second, for both analog
and digital broadcasters, we limit the number of preemptions allowed
under our processing guideline to no more than 10 percent of core
programs in each calendar quarter. A station that fails to meet the
processing guideline because of excessive preemptions may still receive
staff-level approval of its renewal application if it demonstrates that
it has aired a package of educational and informational programming,
including specials, PSAs, short-form programs, and regularly scheduled
non-weekly programs with a significant purpose of educating and
informing children, that demonstrates a commitment to educating and
informing children at least equivalent to airing the amount of core
programming indicated by the processing guideline. Licensees that do
not qualify for staff level approval will have their license renewal
applications referred to the Commission where they will have an
additional opportunity to demonstrate compliance with the CTA. Third,
we amend our rule regarding on-air identification of core programming
to require both analog and digital broadcasters to identify such
programming with the same symbol, E/I, which must be displayed
throughout the program in order for the program to qualify as core
educational programming. Fourth, we clarify that the children's
television commercial limits and policies apply to all digital video
programming directed to children ages 12 and under. Fifth, we interpret
the commercial time limits to require that the display of Internet Web
site addresses during program material is permitted as within the time
limits only if the Web site meets certain requirements, including the
requirement that it offer a substantial amount of bona fide program-
related or other noncommercial content and is not primarily intended
for commercial purposes. Sixth, we revise our definition of
``commercial matter'' to include promotions of television programs or
video programming services other than children's educational and
informational programming. Educational and Informational Programming.
Digital Core Children's Programming Processing Guideline
3. One of the questions posed in the Notice is how the current
three-hour children's core educational programming processing guideline
should apply to a DTV broadcaster that chooses to multicast. We asked
if the processing guideline should apply to only one digital
broadcasting program stream, to more than one program stream, or to all
program streams the broadcaster chooses to provide. We also noted that
DTV broadcasters may choose to devote a portion of their spectrum to
either non-video services, such as datacasting, or to subscription
video services available only to viewers who pay a fee, consistent with
the requirement that they provide at least one free, over-the-air video
program service to viewers. We asked whether the guideline should apply
only to free broadcast services or also to services offered for a fee,
and to video services only or also to non-video services. Finally, we
asked how we should take into account the fact that DTV broadcasters
have the flexibility to vary the amount and quality of broadcast
programming they offer throughout the day. For example, a broadcaster
could air 4 SDTV channels from 8 a.m. to 3 p.m., switch to two higher
definition channels from 3 p.m. to 8 p.m., and finish with one HDTV
channel for prime-time and late-night programming.
4. We have three main goals in crafting children's educational and
informational programming rules for digital broadcasting. First, we
want to ensure that the needs of children continue to be served
``through the licensee's overall programming.'' We agree with
children's television advocates who strongly support the position that
any increase in multicasting channel capacity that broadcasters choose
to implement as a result of digital technology should translate to a
commensurate increase in the amount of educational programming
available to children. Second, we want to provide broadcasters with
flexibility in meeting their children's core
[[Page 27]]
programming obligations to permit them to explore the myriad potential
uses of their broadcast spectrum made possible by digital technology.
Third, we want to address what has been identified by many as a
persistent problem in our rules and policies implementing the CTA: the
continued lack of awareness on the part of parents and others of the
availability of core programming. This concern about lack of public
awareness of core programming applies to both the analog and digital
broadcast environments.
5. The current 3 hours per week processing guideline was adopted
with the one channel per broadcaster analog model in mind. With the
advent of digital broadcasting and the multicasting ability that
technology offers, a new method of quantifying the current core
programming guideline for digital broadcasting is both necessary and
appropriate. We also believe that whatever additional requirements we
impose should be as concrete and quantifiable as possible to remove
uncertainty and facilitate enforcement.
6. We adopt today an approach pursuant to which digital
broadcasters that choose to provide additional channels or hours of
free video programming in addition to their required free over-the-air
video program service will have an increased core programming benchmark
roughly proportional to the additional amount of free video programming
they choose to provide. This approach is similar to that proposed by a
number of commenters in response to the NOI and the Notice. Our revised
guideline will work as follows. Digital broadcasters will continue to
be subject to the existing three hours per week core programming
processing guideline on their main program stream. DTV broadcasters
that choose to provide additional streams or channels of free video
programming will, in addition, have the following guideline applied to
the additional programming: \1/2\ hour per week of additional core
programming for every increment of 1 to 28 hours of free video
programming provided in addition to the main program stream. Thus,
digital broadcasters providing between 1 and 28 hours per week of free
video programming in addition to their main program stream will have a
guideline of \1/2\ hour per week of core programming in addition to the
3 hours per week on the main program stream. Digital broadcasters
providing between 29 and 56 hours per week of free video programming in
addition to their main program stream will have a guideline of 1 hour
per week of core programming in addition to the 3 hours per week on the
main program stream. Digital broadcasters providing between 57 and 84
hours per week of free video programming in addition to their main
program stream will have a guideline of 1\1/2\ hours per week of core
programming in addition to the 3 hours per week on the main program
stream. The guideline will continue to increase in this manner for
additional hours of free video programming. These benchmarks were
derived by dividing the total number of hours in the week (168) by 6
(the number of \1/2\ hour core programming increments required under
our current guideline, as core programs must be at least 30 minutes in
length), which equals 28. Thus, under the revised guideline, for every
increment of 1 to 28 hours of additional free video programming offered
in addition to the main digital program stream, the broadcaster must
air at least an additional \1/2\ hour of core programming. Another way
to look at this is that for each full time stream of additional free
video programming (24 hours day 7 days per week), the licensee must air
an additional 3 hours per week of core programming.
7. Although we encourage stations to air more than an additional
\1/2\ hour per week of core programming for every increment of 28 hours
of additional free video programming, in order to receive staff level
approval of the CTA portion of their license renewal application under
our revised processing guideline digital broadcasters must air at least
\1/2\ hour of core educational children's programming for every
increment of 1 to 28 hours of free video programming provided in
addition to the main program stream. As under our current processing
guideline for the analog channel, a licensee will continue to be
eligible for staff level approval if it demonstrates that it has aired
a package of different types of educational and informational
programming that, while containing somewhat less core programming than
indicated by the revised guideline, demonstrates a level of commitment
to educating and informing children at least equivalent to airing the
amount of programming indicated by the guideline. In this regard,
specials, PSAs, short-form programs, and regularly scheduled non-weekly
programs with a significant purpose of educating and informing children
may be counted toward the processing guideline. Licensees that do not
meet these processing guidelines will be referred to the Commission,
where they will have the opportunity to demonstrate compliance with the
CTA in the same manner as under our current processing guideline.
8. To be considered core, the programming must comply with all of
the requirements for core programming specified in our rules: that is,
it must have serving the educational and informational needs of
children ages 16 and under as a significant purpose; it must be aired
between the hours of 7 a.m. and 10 p.m.; it must be a regularly
scheduled weekly program; it must be at least 30 minutes in length; the
educational and informational objective and the target child audience
must be specified in writing the licensee's Children's Television
Programming Report; and instructions for listing the program as
educational/informational, including an indication of the age group for
which the program is intended, must be provided by the licensee to
publishers of program guides.
9. Our current 3 hours per week core programming processing
benchmark is averaged over a six-month period in order to provide
broadcasters with scheduling flexibility. We will also average the
revised core programming processing benchmark to be applied to DTV
broadcasters over a six-month period, thus providing some flexibility
for digital broadcasters. The revised digital core programming
guideline will become effective one year after release of this Report
and Order.
10. We are concerned that digital broadcasters do not simply replay
the same core programming in order to meet our revised processing
guideline, particularly if broadcasters offer multiple streams of free
video programming and thereby face a higher core programming guideline.
We recognize, however, that to some degree children can benefit from
repeated viewing of the same core program, as the educational lesson or
message is reinforced. Accordingly, we will not prohibit all repeats of
core programming by digital broadcasters under our revised guideline,
but will require that at least 50 percent of core programming not be
repeated during the same week to qualify as core. Under our current 3
hours per week processing guideline that applies to the analog channel,
we allow repeats and reruns of core programming to be counted toward
fulfillment of the guideline. We will exempt from this requirement any
program stream that merely time shifts the entire programming line-up
of another program stream. In addition, during the digital transition,
we will not count as repeated programming core programs that are aired
on both the analog station and a digital program stream.
[[Page 28]]
11. In order to receive staff level approval of their license
renewal application under our revised core programming processing
guideline, digital broadcasters will be required to air at least three
hours per week of core programming on their main program stream. To
provide broadcasters with flexibility in choosing how best to serve
their child audience, however, we will permit digital broadcasters to
air all of their additional digital core programming, beyond the 3 hour
baseline on the main digital program stream, on one free digital video
channel or distribute it across multiple free digital video channels,
at their discretion, as long as the stream/s on which the core
programming is aired has comparable carriage on multichannel video
programming distributors (``MVPDs'') as the stream whose programming
generates the core programming obligation under the revised processing
guideline. Educational and informational programming aired on
subscription channels, however, will not be considered core under our
processing guideline. In addition, the current three hours per week
core programming processing guideline will continue to apply to analog
stations until the analog channel is returned to the Commission at the
end of the digital transition. Core programs aired on digital program
streams will not be considered in evaluating whether a station has
complied with the core programming processing guideline for its analog
channel.
12. We agree with those commenters who argue that, in some cases,
children and parents may be best served by having core programming
available on a channel that is devoted to programming appropriate for
child or family viewing during all or part of the programming day or
week. We also agree that requiring every programming stream to carry
core programming could discourage broadcasters from experimenting with
innovative multicasting services. If, for example, alternative content
streams are used to directly expand the value of the main stream
through the broadcasting of associated information or different camera
angles or the alternative streams are used for low bit rate video
services such as a dedicated weather channel, they may not be
appropriate for the carriage of children's programming. Moreover, we do
not want to discourage broadcasters from providing highly specialized
channels on which content directed to children might depart from the
specialized focus. It is our expectation that broadcasters will develop
such programming services. In the next three years, we intend to
revisit the issues addressed in this Report and Order in another
proceeding. At that time, we will consider, among other things, whether
we should give broadcasters who choose to multicast more flexibility in
terms of placement of core programming.
13. The revised guideline discussed above applies to digital
broadcasters and the digital programming they provide. Up until the
time that analog channels are returned to the Commission, we will
continue to apply our current three hours per week core children's
programming processing guideline to analog channels. Broadcasters will
continue to file, on a quarterly basis, their Children's Television
Programming Report, on FCC Form 398. We will revise current FCC Form
398 to permit broadcasters to report both analog and digital core
programming on that form. Once the new form has been approved for use,
we will issue a Public Notice informing broadcasters of the
availability of the form and the date on which the revised form must
begin to be used in place of the current form. On that date, reports
will also be required to include information about digital core
programming. As we have done in the analog context, we will continue to
exempt noncommercial television licensees from children's programming
reporting requirements with respect to their digital programming.
14. We also decline, at this time, to require high definition,
interactivity, or other features made possible by digital technology to
enhance core programming. We believe it would be premature to impose
any requirement for use of technological advances in children's
programming until broadcasters have had more opportunity to experiment
with these features in other programming. However, we encourage
broadcasters to provide high definition educational and informational
programming for children as well as educational interactive features,
to ensure that children benefit from the capabilities of digital
technology. We agree with those commenters who argue that use of such
features could improve the educational potential of core programming.
15. Finally, we disagree with those commenters that argue that the
Commission lacks legal authority to impose new children's educational
and informational programming requirements. As noted above, digital
broadcasters are subject to the CTA's educational and informational
programming requirements. In the 1996 Children's Programming Report and
Order, we concluded that a safe harbor processing guideline approach to
implementing the CTA is consistent with both the language and the
intent of the statute. The revised quantitative processing guideline we
adopt today for digital broadcasters is also consistent with the CTA
and the First Amendment. In adopting the three hours per week core
programming processing guideline for analog broadcasters, we concluded
that defining what qualifies as programming ``specifically designed''
to serve the educational needs of children and giving broadcasters
clear but nonmandatory guidance on how to guarantee compliance is a
constitutional means of giving effect to the CTA's programming
requirement. The actions we take today extend the current processing
guideline to digital broadcasters and increase the guideline only for
broadcasters who choose to use their digital capacity to air more free
video programming. Broadcasters continue to retain wide discretion in
choosing the ways in which they will meet their CTA obligations. Our
new guideline imposes reasonable parameters on a broadcaster's use of
the public airwaves and is narrowly tailored to advance the
government's substantial, and indeed compelling, interest in the
protection and education of America's children.
Preemption
16. Related to the issue of digital broadcasters' educational and
informational programming obligations under the CTA is the issue of how
we will treat preemptions of core programs by DTV broadcasters. To
qualify as ``core programming'' for purposes of the three-hour-per-week
processing guideline, the Commission requires that a children's program
be ``regularly scheduled''; that is, a core children's program must
``be scheduled to air at least once a week'' and ``must air on a
regular basis.'' In adopting the current educational programming rules,
the Commission stated that television series typically air in the same
time slot for 13 consecutive weeks, although some episodes may be
preempted for programs such as breaking news or live sports events. The
Commission noted that programming that is aired on a regular basis is
more easily anticipated and located by viewers, and can build loyalty
that will improve its chance for commercial success. The Commission
stated that it would leave to the staff to determine, with guidance
from the full Commission as necessary, what constitutes regularly
scheduled
[[Page 29]]
programming and what level of preemption is allowable.
17. We requested comment in the Notice on whether the Commission's
policies regarding preemption of core programs should be revised in
view of the greater programming capacity that will be available to DTV
broadcasters. We noted that the ability of DTV broadcasters to
multicast provides them with the option of airing multiple streams of
programming simultaneously, thus increasing their flexibility to either
avoid preempting core programs or to reschedule such programs to a
regular ``second home.'' Given this capability, we asked if we should
fashion a rule defining clearly the requirement that a ``core'' program
be ``regularly scheduled,'' including the number of times a core
program could be preempted and still count toward the three-hour-per-
week processing guideline, and the efforts that must be made to
reschedule and promote preempted programs in order for these programs
to contribute toward the core programming guideline. If we were to
adopt such a rule, we asked if we should continue to exempt from the
requirement that core programs be rescheduled core programs preempted
for breaking news. We also sought comment on the kind of rescheduling
practices and promotion of rescheduled programs that we could require
from digital broadcasters.
18. For both analog and digital broadcasters, to be considered core
programming we will generally require that a preempted core program be
rescheduled. In addition, we will consider, in determining whether the
rescheduled program counts as a core educational program, the reason
for the preemption, the licensee's efforts to promote the rescheduled
program, the time when the rescheduled program is broadcast, and, as
discussed below, the station's level of preemption of core programming.
We will continue to exempt from the requirement that core programs be
rescheduled core programs preempted for breaking news. Absent clear
evidence that broadcasters are abusing this exemption, we intend to
rely on broadcasters' journalistic judgment regarding the necessity of
interrupting scheduled core programming because of a news alert.
19. As a general matter, for digital broadcasters we will not
consider a core program moved to the same time slot on another of the
station's digital program streams to be preempted as long as the
alternate program stream receives MVPD carriage comparable to the
stream from which the program is being moved and the station provides
adequate on-screen information about the move, including when and where
the program will air, on both the original and the alternate program
stream. This policy applies only to program moves from one digital
stream to another digital stream on the same station. Thus, as long as
viewers are adequately notified of the move and the program is moved to
a program stream that is accessible to a comparable number of viewers,
broadcasters may use their multicasting capability to avoid preempting
core programming.
20. For both analog and digital broadcasters, we will limit the
number of preemptions under our processing guideline to no more than 10
percent of core programs in each calendar quarter. Each preemption
beyond the 10 percent limit will cause that program not to count as
core under the processing guideline, even if the program is
rescheduled. We will exempt from this preemption limit preemptions for
breaking news.
21. We believe that this preemption limit will help parents and
children to locate core programming and to anticipate when it will be
aired. We believe that most stations currently do not preempt more than
10 percent of core programs in each calendar quarter. We also note that
our processing guideline is averaged over a six-month period, which
will provide broadcasters with some scheduling flexibility. In
addition, a station that fails to meet the processing guideline because
of excessive preemptions may still receive staff-level approval of its
renewal application if it demonstrates that it has aired a package of
educational and informational programming, including specials, PSAs,
short-form programs, and regularly scheduled non-weekly programs with a
significant purpose of educating and informing children, that
demonstrates a commitment to educating and informing children at least
equivalent to airing the amount of core programming indicated by the
processing guideline. Licensees that do not qualify for staff level
approval will have their license renewal applications referred to the
Commission where they will have an additional opportunity to
demonstrate compliance with the CTA.
Identification of Core Programming
22. As we stated in the NPRM, studies of the effectiveness of our
educational programming requirements show a continued lack of awareness
on the part of parents regarding the availability of core programming.
As one study observed:
Information about E/I programs remains hard for parents to find.
Although commercial broadcasters are consistently using E/I icons,
the on-air information is often brief and difficult to identify.
Printed listing services do not carry the information. * * * Thus,
there is a serious lack of information for parents about core
educational and informational offerings, mostly because the popular
press does not appear to be interested in or have the capacity to
publish such information. Not surprisingly, only one in seven
parents is able to correctly identify the meaning of the E/I symbol.
23. As we noted when we adopted the current children's educational
programming rules in 1996, parents can increase the audience of an
educational program by encouraging their children to watch the show,
but can only do so if they know in advance when the show will air and
that the show is educational. The public information initiatives
adopted by the Commission in 1996 were designed to maximize public
access to information about core programming while minimizing the cost
to licensees. In adopting the current on-air identification
requirement, the Commission noted that on-air identifiers were likely
to reach a larger audience than information published in program
guides, at minimal cost to stations. We continue to believe that on-air
identification of core programming is a cost-effective means of
ensuring that core programming reaches the child audience, but agree
with those commenters that argue that the use of different identifiers
by different broadcasters is confusing parents and impairing their
ability to choose core programming for their children.
24. Accordingly, we will amend our rules regarding on-air
identification of core programming to require both analog and digital
broadcasters to identify such programming with the same symbol: E/I. We
will also require that this symbol be displayed throughout the program
in order for the program to qualify as core. We believe this change to
our on-air identification requirement will not prove onerous to
broadcasters, who already use on-screen identifiers for core programs,
and could greatly improve the public's ability to recognize and locate
core programs. We note that broadcasters now display icons and other
on-screen information with increasing frequency in many kinds of
programming, and the public is increasingly used to seeing such
information displayed along with program material. Broadcasters'
increasing voluntary use of onscreen identifiers, such as network
logos, presumably reflects their judgment as to the effectiveness of
this technique in communicating information. We believe that
broadcasters can display the E/I
[[Page 30]]
icon in an unobtrusive manner that will help parents and others
identify core programs without deterring potential child viewers.
25. We will apply this revised on-air identification requirement to
both commercial and noncommercial broadcasters. Although we have
previously exempted noncommercial licensees from the requirement that
they identify core programming, we believe that requiring all
broadcasters to use the E/I symbol throughout the program to identify
core programming will help reinforce viewer awareness of the meaning of
this symbol. We will, however, continue to exempt noncommercial
television licensees from the other public information initiatives
adopted in the 1996 Children's Programming Report and Order. Thus,
noncommercial television stations will not be required to prepare and
file quarterly Children's Television Programming Reports or to provide
information identifying programming specifically designed to educate
and inform children to publishers of program guides. As is our current
practice, we will require noncommercial broadcast stations to maintain
documentation sufficient to show compliance with the CTA's programming
obligations at renewal time in response to a challenge or to specific
complaints.
Commercial Limits
Application of Existing Commercial Limits Rules and Policies to DTV
26. We sought comment in the Notice on how the limits on the amount
of commercial matter in children's programming should apply in the
digital environment and how we should interpret with respect to DTV
broadcasters the policies set forth in the 1974 Policy Statement on
children's programming. We asked whether children's advertising limits
and policies should apply only to free over-the-air channels, or to all
digital channels, both fee and pay. We sought comment specifically on
the proposal by CME, et al. that the Commission prohibit all direct
links to commercial Web sites during children's programming. If we were
to permit certain kinds of commercial links during children's programs,
we asked if such links should be permitted to appear during the program
itself, or be limited to appearing during commercials adequately
separated from program material as required by our separations policy.
27. We will apply the commercial limits and policies, as clarified
in today's Order, to all digital video programming directed to children
ages 12 and under, whether that programming is aired on a free or pay
digital stream. We note that the commercial limits and policies
currently apply to cable operators and DBS providers and that cable
operators are defined as ``broadcast licensees'' for purposes of the
commercial matter limitations in the CTA. Therefore, the application of
such limits and policies to pay broadcast channels provides for
consistent treatment of these program delivery systems for purposes of
children's advertising restrictions. We agree with those commenters
that argue that the same concerns that led to adoption of the
advertising restrictions in the 1974 Policy Statement and the CTA--the
unique vulnerability of children as television viewers--apply
regardless of the channel that a child viewer watches. Thus, any
advertising restrictions for children's programming should apply to all
such programming, regardless of the free or pay status of the channel.
This determination is both consistent with and required by Section 336
of the Communications Act, which states that the Commission ``shall
adopt regulations that allow the holders of [DTV] licenses to offer
such ancillary and supplementary services on designated frequencies as
may be consistent with the public interest, convenience and
necessity.'' Providing programs intended for children that do not
comply with the advertising limits or commercial policies is contrary
to the public interest because they could expose children to excessive
and abusive advertising practices.
28. We are aware that some broadcasters are currently displaying
Internet Web site addresses that appear during children's program
material (for example, in a crawl at the bottom of screen) which raises
the issue of how the CTA commercial time limits should apply. We are
concerned that the display of such addresses for Web sites established
solely for commercial purposes in children's programs is inconsistent
with our mandate under the CTA to protect children, who are
particularly vulnerable to commercial messages and incapable of
distinguishing advertising from program material. This is a concern
that arises with respect to all broadcasters, both analog and digital,
and to cable operators. Accordingly, we adopt a proposal similar to
that advanced by Sesame Workshop with respect to this display of
commercial Web site information in children's programs. Specifically,
we will interpret the CTA commercial time limits to require that, with
respect to programs directed to children ages 12 and under, the display
of Internet Web site addresses during program material is permitted as
within the CTA limitations only if the Web site: (1) Offers a
substantial amount of bona fide program-related or other noncommercial
content; (2) is not primarily intended for commercial purposes,
including either e-commerce or advertising; (3) the Web site's home
page and other menu pages are clearly labeled to distinguish the
noncommercial from the commercial sections; and (4) the page of the Web
site to which viewers are directed by the Web site address is not used
for e-commerce, advertising, or other commercial purposes (e.g.,
contains no links labeled ``store'' and no links to another page with
commercial material).
29. For Web sites meeting these requirements, we will not limit the
amount of time that the Web site address may be displayed during
children's programs. In addition, we will permit the commercial
portions of Web sites that comply with these requirements to sell or
advertise products associated with the related television program.
Because we require that permissible Web sites clearly separate the
commercial portions of the site from the site's other content, we
believe that children will be adequately protected from program-related
merchandise sales. Because of the unique vulnerability of young
children to host-selling, however, we will prohibit the display of Web
site addresses in children's programs when the site uses characters
from the program to sell products or services. This restriction on Web
sites that use host-selling applies to Web site addresses displayed
both during program material and during commercial material. We do not
impose other restrictions at this time on the use of Web site addresses
displayed only during commercials aired in children's programs.
30. We believe that this approach to the display of Web site
addresses in programs directed to children ages 12 and under fairly
balances the interest of all broadcasters in exploring the potential
uses of the Internet in connection with their children's programs with
our mandate to protect children from over commercialization. We will
require a broadcaster that chooses to air children's programs
displaying Web site addresses during program material to certify, as
part of its certification in its license renewal application of
compliance with the commercial limits on children's
[[Page 31]]
programming, that it has also complied with the requirements concerning
the display of Web site addresses in such programming. In addition,
these broadcasters will be required to maintain in their public
inspection file, until final action has been taken on the station's
next license renewal application, records sufficient to substantiate
the station's certification of compliance with the restrictions on Web
site addresses in programs directed to children ages 12 and under.
Cable operators airing children's programming must maintain records
sufficient to verify compliance with these new rules and make such
records available to the public. Such records must be maintained by
cable operators for a period sufficient to cover the limitations period
specified in 47 U.S.C. 503(b)(6)(B).
31. With respect to the appearance of direct, interactive, links to
commercial Internet sites in children's programming, we agree with
those commenters that express concern that prohibiting such links at
least at this stage in the digital transition is premature and
unnecessary and could hamper the ability of broadcasters to experiment
with potential uses of interactive capability in children's
programming. There is little if any use of direct Internet connectivity
today in television programming of the type that was contemplated when
the Notice in this proceeding was issued. Accordingly, we find that it
would be premature and unduly speculative to attempt to regulate such
direct connectivity at this time. We agree that direct links to Web
sites with program-related material could provide beneficial
educational and informational content in children's programs and do not
wish to place unnecessary barriers in the way of technical developments
in this area that may take place.
32. We encourage broadcasters to experiment with the capabilities
digital television offers by developing interactive services that can
be used to enhance the educational value of children's programming.
With the benefits of interactivity, however, come potential risks that
children will be exposed to additional commercial influences. We
therefore seek comment in the Further Notice of Proposed Rulemaking
that is part of this Report and Order about what kinds of services
broadcasters and cable operators are developing and what rules would be
appropriate to adopt. During the pendancy of this proceeding, however,
we emphasize that broadcasters and cable operators may not circumvent
our rules on commercial limits through technological developments in
interactivity. We encourage broadcasters and cable operators to
innovate and experiment with new uses of interactive technology that is
educational in nature.
Definition of Commercial Matter
33. The Notice also invited commenters to address a broader
question related to our restriction on the duration of advertising
during children's programming. This issue arises with respect to both
analog and digital programming. We noted that, under our current
policy, the limitation of 10.5 minutes per hour on weekends and 12
minutes per hour on weekdays applies to ``commercial matter.''
``Commercial matter'' is defined to exclude certain types of program
interruptions from counting toward the commercial limits, including
promotions of upcoming programs that do not mention sponsors, public
service messages promoting not-for-profit activities, and air-time sold
for purposes of presenting educational and informational material. We
observed in the Notice that there is a significant amount of time
devoted to these types of announcements in children's programming,
thereby often reducing the amount of time devoted to actual program
material to an amount far less than the limitation on the duration of
commercial matter alone might suggest.
34. Accordingly, we invited comment in the Notice on whether the
Commission should revise its definition of ``commercial matter'' to
include some or all of these types of program interruptions that do not
currently contribute toward the commercial limits. We noted that some
of the types of program interruptions currently excluded from the
commercial limits may contain information valuable to children, such as
promotion of upcoming educational programs or certain types of public
service messages. We asked if we should nonetheless require that the
time devoted to these announcements count toward the commercial limits
to maximize the amount of time devoted to program material and reduce
the time taken by interruptions. We also asked whether, if we were to
revise our definition of ``commercial matter,'' we should apply the new
definition only to digital broadcasting or also to analog broadcasting.
Finally, we asked commenters to address whether our ability to revise
this definition is restricted by the CTA and its legislative history.
35. We will revise our definition of ``commercial matter'' to
include promotions of television programs or video programming services
other than children's educational and informational programming. This
revised definition will apply to analog and digital television stations
and to cable operators. In the Further Notice of Proposed Rulemaking
that is part of this Report and Order, we also propose to apply this
revised definition to Direct Broadcast Satellite service providers. Our
goals in making this revision to the definition of commercial matter
are to reduce the number of commercial interruptions in children's
programming and encourage the promotion of educational and
informational programming for children.
36. We agree with those commenters who argue that program
promotions should fall within the scope of commercial matter because
the station broadcasting the promotion receives significant
consideration for airing these advertisements: specifically, the
increased audiences for the promoted program which presumably leads to
increased advertising rates for the station. Reducing the number of
program promotions will help protect children from
overcommercialization of programming consistent with the overall intent
of Congress in the CTA. At the same time, exempting program promotions
for children's educational and informational programming may encourage
broadcasters to promote this programming, thereby increasing parents'
awareness of the programming and possibly the program's audience, and
thus extending the educational benefit of the programming. As noted
above, there is evidence of a continued lack of awareness on the part
of parents regarding the availability of core programming. Our action
may lead to additional promotion of children's educational and
informational programming, including core programming, thereby helping
to address this problem.
37. This decision is consistent with the CTA and its legislative
history. The term ``commercial matter'' is not defined in the CTA. The
House and Senate Reports state that the definition should be
``consistent'' with the definition used in former Form 303-C, which
defined commercial matter to include, among other things, promotional
announcements by commercial stations for or on behalf of another
commonly owned or controlled broadcast station serving the same
community. Including program promotions in the definition of commercial
matter is consistent with this aspect of the definition of commercial
matter on former Form 303-
[[Page 32]]
C, as in either case the station is receiving indirect consideration
for the program promotion.
Inappropriate Promotions in Children's Programming
38. Another issue raised both in the Notice and in the NOI relates
to the airing, in programs viewed by children, of promotions for other
upcoming programs that may be unsuitable for children to watch because
either the promotions themselves or the programs they refer to contain
sexual or violent content or inappropriate language. This issue arises
with respect to both analog and digital broadcasting and applies not
only to educational and informational children's programming but to any
programming that is viewed by a substantial number of children. We
sought comment in the Notice on steps the Commission could take to
ensure that programs designed for children or families do not contain
promotions that are unsuitable for children to watch. We noted that the
broadcast, cable, and motion picture industries voluntarily rate video
programming that contains sexual, violent, or other indecent material
and broadcast signals containing these ratings so that these programs
can be screened by ``V-Chip'' technology available in television sets.
The ratings identify the age group for which a particular program is
suitable and indicate when the program contains violence, sexual
content, or suggestive or coarse language. We asked in the Notice
whether the ratings of programs promoted by broadcasters should be
consistent with the ratings of the program during which the promotions
run. We also asked whether we should require that promotions themselves
be rated and encoded so they can be screened by V-Chip technology, or
that promotions be rated and that programs with a significant child
audience contain only promotions consistent with the rating of the
program in which they appear.
39. In light of the consensus among commenters that voluntary
efforts rather than Commission action are preferable to ensure that
age-inappropriate promotions are not aired in children's programs, we
will not take action on this issue at this time. Instead, we urge
broadcasters to ensure that industry mechanisms are in place and are
used effectively to prevent the airing of promotions in children's
programs that are inappropriate for child viewing. We also urge the
public to continue to monitor promotions aired in children's
programming and to notify us of instances in which broadcasters air
age-inappropriate promotions. If we receive information suggesting that
age-inappropriate promotions have become a systemic problem, we will
revisit this issue.
40. We agree with those commenters that argue that DTV technical
standards should not foreclose the implementation of changes to or
improvements in the V-Chip system. We also believe that DTV technical
standards should not foreclose the option of using V-Chip technology to
support multiple rating systems. In our Report and Order in the Second
Periodic Review of the Commission's Rules and Policies Affecting the
Conversion to Digital Television, we adopted rules to ensure that V-
Chip functionality is available in the digital world. In that
proceeding, we stated our belief that the ability to modify the content
advisory rating system is beneficial and required that television
receivers be able to process new ratings should they be developed. We
also adopted standards that do not preclude manufacturers from
incorporating additional blocking standards or techniques into
receivers, thereby permitting manufacturers to develop V-Chip
technology that can be used in conjunction with additional ratings
systems.
41. We will not at this time adopt the other V-Chip proposals
advanced by commenters. Nonetheless, we encourage broadcasters to
consider various ways of improving V-Chip utility, including making
available in their programming a link to a Web site where parents and
other viewers can get additional information about program ratings and
the V-Chip, once such technology or functionality is available to
consumers. We also encourage the broadcast, cable, and motion picture
industries to consider whether any revisions to the ratings system
would make it more accurate and easier to understand.
42. In our next periodic review of the status of the digital
transition, we plan to address whether we should require digital
broadcasters to embed E/I information in the core program stream so
that this information can be sought by V-Chip or other technology.
Given the lack of information in the record of this proceeding about
how this information would be used and the potential benefits of this
technology in helping parents locate core programming, and the
potential costs such a requirement would impose, we do not address this
issue today.
Future Proceedings
43. We intend to revisit the issues addressed in this item in the
next three years and consider whether the determinations made herein
should be changed in light of technological developments. In
particular, we will consider whether broadcasters should be given more
flexibility to determine the program stream on which core programming
is placed.
44. In addition, we intend to issue a Public Notice in the near
future seeking comment on whether broadcasters are complying with the
letter and intent of the CTA in terms of, among other things, the
amount and quality of core children's programming being provided and
the extent of preemption of such programming. The Commission staff also
intends to conduct a review of broadcaster compliance with the CTA and
our rules and to issue a report on the results of this review and the
comments filed in response to the Public Notice. The Commission last
issued a report on compliance with the CTA in 2001. The Commission
plans to conduct similar reviews and issue similar reports on a regular
basis roughly every three years.
Effective Dates and Transition Period
45. Our revised policies and rules regarding application of the
commercial limits and policies to digital programming as well as those
regarding the display of Internet addresses in analog and digital
programming and in programming aired by cable operators, will become
effective February 1, 2005. We will begin to evaluate compliance with
these requirements in renewal applications filed after that date. Thus,
the first renewal applications to which these new requirements will be
applied are those required to be filed by April 1, 2005, by television
stations located in the states of Indiana, Kentucky, and Tennessee.
Licensee performance during any portion of the renewal term that
predates February 1, 2005, will be evaluated under the current rules
and policies and performance that post-dates the rules will be judged
under the new provisions.
46. Our rules regarding on-air identification of core programming
will become effective after approval by the Office of Management and
Budget (``OMB'') under the Paperwork Reduction Act of 1995 (``PRA'').
Upon OMB approval, we will issue a Public Notice announcing the
effective date of this rule. The effective date will be no earlier than
February 1, 2005. Similarly, we will issue a Public Notice announcing
when the revised FCC Form 398, also subject to OMB approval under the
PRA, will be available for use by licensees and when licensees must
commence using the revised form to report digital core programming.
[[Page 33]]
47. Our revised definition of commercial matter will become
effective January 1, 2006. This transition period will give programmers
time to produce sufficient children's programming and other material to
include within children's programming that would not be considered
commercial matter. Similarly, our revised safe harbor processing
guideline for digital broadcasters will become effective January 1,
2006. The limit on the number of preemptions for digital broadcasters
under our processing guideline to no more than 10 percent of core
programs in each calendar quarter and the limit for digital
broadcasters on the number of repeats of core programming to no more
than 50 percent of core programming during the same week will also
become effective January 1, 2006. These requirements relate to the
calculation of hours of core programming under our revised guideline
and therefore should become effective at the same time as the revised
guideline. In addition, to give analog broadcasters time to come into
compliance with our rule limiting the number of preemptions under the
current analog processing guideline to no more than 10 percent of core
programs in each calendar quarter, we will also delay the effective
date of that rule as applied to analog broadcasters until January 1,
2006. We believe that this transition period is appropriate to give
licensees time to develop programming or to renegotiate or allow
expiration of existing program contracts as necessary. Renewal
applications filed earlier than January 1, 2006, will be evaluated for
compliance with the CTA based on our current rules and the policies
expressed in the 1996 Children's Programming Report and Order and the
1991 Report and Order, as modified upon reconsideration. License
renewal applications filed after January 1, 2006, will be evaluated to
determine whether broadcasters are providing core programming using the
revised definition of commercial matter and processing guideline
adopted herein and are complying with the revised rules concerning
preemption and repeats of core programming. Thus, the first renewal
applications to which these new requirements will be applied are those
required to be filed by February 1, 2006, by stations located in the
states of Kansas, Nebraska, and Oklahoma. Licensee performance during
any portion of the renewal term that predates January 1, 2006, will be
evaluated under the current rules and policies and performance that
post-dates the new rules will be judged under the new provisions.
Conclusion
48. We adopt this Report and Order and Further Notice of Proposed
Rule Making to address the obligation of DTV broadcasters under the CTA
to air educational programming for children and to protect children
from excessive and inappropriate commercial messages. Our goals are to
ensure that parents and children benefit from broadcasters' use of
digital technology to provide multiple broadcast streams and to permit
broadcasters flexibility to explore the potential uses of the broadcast
spectrum made possible by digital technology, including the use of
direct Web site links in children's programming, consistent with the
mandate of the CTA. We believe that the rules and policies adopted
herein further the mandate of the CTA that broadcast television fulfill
its potential to teach the nation's children and that broadcasters
protect children from over commercialization.
VII. Administrative Matters
49. This Report and Order contains new or modified information
collection(s) subject to the Paperwork Reduction Act of 1995 (PRA),
Public Law 104-13. It will be submitted to the Office of Management and
Budget (OMB) for review under Section 3507(d) of the PRA. OMB, the
general public, and other Federal agencies are invited to comment on
the new or modified information collection(s) contained in this
proceeding. Written comments by the public on the proposed new and
modified information collection(s) are due 60 days from date of
publication of this Report and Order in the Federal Register. In
addition to filing comments with the Secretary, a copy of any comments
on the information collection(s) contained herein should be submitted
to Cathy Williams, Federal Communications Commission, Room 1-C823, 445
12th Street, SW., Washington, DC 20554, or via the Internet to Cathy
Williams@fcc.gov, and to Kristy L. LaLonde, OMB Desk Officer, Room
10234 NEOB, 725 17th Street, NW., Washington, DC 20503, or via the
Internet to KristyL. LaLonde@omb.eop.gov, or via fax at 202-395-5167.
50. As required by the Regulatory Flexibility Act,\1\ the
Commission has prepared a Final Regulatory Flexibility Analysis
(``FRFA'') relating to this Report and Order. The FRFA is set forth
below.
---------------------------------------------------------------------------
\1\ See 5 U.S.C. Sec. 604.
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51. The Commission will send a copy of the Report and Order in a
report to be sent to Congress and the General Accounting Office
pursuant to the Congressional Review Act, see 5 U.S.C. 801(a)(1)(A).
52. For additional information on this proceeding, please contact
Kim Matthews, Policy Division, Media Bureau at (202) 418-2154.
Final Regulatory Flexability Analysis
53. As required by the Regulatory Flexibility Act of 1980, as
amended (``RFA''), an Initial Regulatory Flexibility Analysis
(``IRFA'') was incorporated in the Notice of Proposed Rule Making
(``NPRM''). The Commission sought written public comment on the
proposals in the Notice, including comment on the IRFA. One comment was
received on the IRFA. This Final Regulatory Flexibility Analysis
(``FRFA'') conforms to the RFA.
I. Need for, and Objectives of, the Report and Order
The purpose of this proceeding is to determine how the existing
children's educational television programming obligations and
limitations on advertising in children's programs should be interpreted
and adapted to apply to digital television broadcasting in light of the
new capabilities made possible by that technology. First, we address
the obligation of digital television (``DTV'') broadcasters to provide
children's educational and informational programming and, specifically,
how that obligation applies to DTV broadcasters that use the multicast
capability of their ATSC digital service to broadcast multiple program
services. We adopt an approach pursuant to which digital broadcasters
that choose to provide streams or hours of free video programming in
addition to their required free over-the-air video program service will
have an increased core programming benchmark roughly proportional to
the additional amount of free video programming they choose to provide.
Second, for both analog and digital broadcasters, we limit the number
of preemptions allowed under our processing guideline to no more than
10 percent of core programs in each calendar quarter. Third, we amend
our rule regarding on-air identification of core programming to require
both analog and digital broadcasters to identify such programming with
the same symbol, E/I, which must be displayed throughout the program in
order for the program to qualify as core
[[Page 34]]
educational programming. Fourth, we clarify that the children's
television commercial limits and policies apply to all digital video
programming directed to children ages 12 and under. Fifth, we interpret
the commercial time limits to require that the display of Internet Web
site addresses during program material is permitted as within the time
limits only if the Web site meets certain requirements, including the
requirement that it offer a substantial amount of bona fide program-
related or other noncommercial content and is not primarily intended
for commercial purposes. Sixth, we revise our definition of
``commercial matter'' to include promotions of television programs or
video programming services other than children's educational and
informational programming. Finally, we seek comment on several
additional proposals concerning the children's programming commercial
limits and indicate our intention to issue a Public Notice in the near
future seeking comment on broadcaster compliance with the Children's
Television Act of 1990 (``CTA''). Our objectives in resolving these
issues are to provide television broadcasters with guidance regarding
their obligation to serve children as we transition from an analog to a
digital television environment and to improve our children's
programming rules and policies.
II. Summary of Significant Issues Raised by Public Comments in Response
to the IRFA
The U.S. Small Business Administration (``SBA'') filed the only
comment in this proceeding responding to the IRFA. According to the
SBA, the IRFA does not satisfy the requirements of the RFA, as it does
not describe many of the ``compliance requirements'' contained in the
NPRM and their impact on small firms. The SBA also argues that the IRFA
does not discuss significant alternatives that would accomplish the
objectives while minimizing the significant economic impact on small
entities. SBA states that it does not question the Commission's goals
in this proceeding, but instead asks that the Commission seek ways to
minimize the burdens on small business while still accomplishing its
goals.
The NPRM described a number of possible ways of applying the
current core programming processing guideline to digital broadcasters.
These proposals were suggested by commenters responding to the NOI in
this docket. It was not possible for the Commission to develop detailed
estimates of the cost of adopting each of these proposals because the
details of how any of the proposals would be implemented were not
known. The NPRM sought comment on these various proposals in large part
to determine, in the view of broadcasters and others, which would be
the preferable means of adapting our current rules. Commenters
responding to the NPRM address, among other issues, the cost of the
various proposals and the advantages, from cost and other perspectives,
of the approach they advocate. In determining what approach to adopt,
the Commission carefully considered all of the comments, particularly
thos