Promoting Diversification of Ownership in the Broadcasting Services, 2934-2938 [2013-00574]
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Federal Register / Vol. 78, No. 10 / Tuesday, January 15, 2013 / Proposed Rules
Information Center, shall send a copy of
the Sixth Further Notice of Proposed
Rulemaking, including the Initial
Regulatory Flexibility Analysis, to the
Chief Counsel for Advocacy of the Small
Business Administration.
51. It is further ordered, that the
Emergency Petition for Immediate
Revision of Instructional/Informational
Materials Relative to Form 323, filed on
September 14, 2011 by Fletcher, Heald
& Hildreth, P.L.C., is dismissed.
Federal Communications Commission.
Cecilia Sigmund,
Acting Associate Secretary.
[FR Doc. 2013–00578 Filed 1–14–13; 8:45 am]
BILLING CODE 6712–01–P
FEDERAL COMMUNICATIONS
COMMISSION
47 CFR Part 73
[MB Docket Nos. 07–294, 06–121, 02–277,
04–228; MM Docket Nos. 01–235, 01–317,
00–244; FCC 09–92]
Promoting Diversification of
Ownership in the Broadcasting
Services
Federal Communications
Commission.
ACTION: Notice of proposed rulemaking.
AGENCY:
The Commission seeks
comment on whether to collect
information from holders of equity
interests in a licensee that would be
attributable but for the single majority
shareholder exemption and from
holders of interests that would be
attributable but for the higher EDP
thresholds adopted in the Diversity
Order, published May 16, 2008, for
purposes of determining attribution of
certain interests in eligible entities.
DATES: The Commission must receive
written comments on or before February
14, 2013 and reply comments on or
before March 1, 2013. Written
comments on the Paperwork Reduction
Act (PRA) proposed information
collection requirements must be
submitted by the public, Office of
Management (OMB) and other
interested parties on or before March 18,
2013.
ADDRESSES: You may submit comments,
identified by MB Docket. No. 07–294, by
any of the following methods:
• Federal Communications
Commission’s Web Site: https://
fjallfoss.fcc.gov/ecfs2/. Follow the
instructions for submitting comments.
• People with Disabilities: Contact the
FCC to request reasonable
accommodations (accessible format
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documents, sign language interpreters,
CART, etc.) by email: FCC504@fcc.gov
or phone 202–418–0530 or TTY: 202–
418–0432.
For detailed instructions for submitting
comments and additional information
on the rulemaking process, see the
SUPPLEMENTARY INFORMATION section of
this document.
FOR FURTHER INFORMATION CONTACT: For
additional information on this
proceeding, contact Judith Herman of
the Media Bureau, Industry Analysis
Division, at (202) 418–2330. For
additional information concerning the
Paperwork Reduction Act information
collection requirements contained in the
Notice of Proposed Rulemaking contact
Cathy Williams at (202) 418–2918 or
send an email to PRA@fcc.gov.
SUPPLEMENTARY INFORMATION: This is a
summary of the Commission’s Fifth
Notice of Proposed Rulemaking in MB
Docket No. 07–294 is available for
public inspection and copying during
regular business hours in the FCC
Reference Center, Federal
Communications Commission, 445 12th
Street SW., Washington, DC 20554.
These documents will also be available
via ECFS (https://fjallfoss.fcc.gov/ecfs/)
and may be purchased from the
Commissions copy contractor, BCPI,
Inc. at their Web site https://
www.bcpi.com or call 1–800 378–3160.
Initial Paperwork Reduction Act of
1995 Analysis
This Notice of Proposed Rulemaking
may result in a new or revised
information collection requirement. If
the Commission adopts any new or
revised information collection
requirements, the Commission will
publish a notice in the Federal Register
inviting the public to comment on the
requirement, as required by the
Paperwork Reduction Act of 1995,
Public Law 104–13 (44 U.S.C. 3501–
3520). In addition, pursuant to the
Small Business Paperwork Relief Act of
2002, Public Law 107–198, see 44 U.S.C.
3506(c)(4), the commission seeks further
comment on how it might ‘‘further
reduce the information collection
burden for small business concerns with
fewer than 25 employees.’’
I. Introduction
1. The Commission seeks comment on
whether to collect information from
holders of equity interests in a licensee
that would be attributable but for the
single majority shareholder exemption
and from holders of interests that would
be attributable but for the higher EDP
thresholds adopted in the Diversity
Order, published May 16, 2008, 73 FR
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28361, for purposes of determining
attribution of certain interests in eligible
entities. In the 323 Order, 74 FR 25163
(2009), the Commission determined
that, in order to measure the extent of
minority and female ownership of
broadcast outlets and assess the need for
and effectiveness of any policies
designed to promote minority and
female ownership, it is important to
obtain information on holders of certain
nonattributable interests, as well as on
holders of attributable interests. The
Commission concluded that while it
considers only attributable interest
holders in determining whether
licensees are in compliance with our
media ownership rules, the balance
struck in defining what interests should
be counted for purposes of
implementing our ownership rules may
not be appropriate for collecting data on
interests held by minorities and women.
As noted above, we did not receive
comments on this issue prior to
adopting these conclusions. Therefore,
in order to obtain a complete record on
this question, we are commencing a
Further Rulemaking on whether to
expand the reporting requirements to
include certain nonattributable entities.
Specifically, we seek comment on
whether to collect information from
holders of equity interests in a licensee
that would be attributable but for the
single majority shareholder exemption
and from holders of interests that would
be attributable but for the higher EDP
thresholds adopted in the Diversity
Order for purposes of determining
attribution of certain interests in eligible
entities.
2. The single majority shareholder
exemption provides that a minority
shareholder’s voting interests will not
be attributed where a single shareholder
holds more than 50 percent of the
outstanding voting stock of the
corporation in question. In the 323
Order, the Commission explained why
reporting of information about minority
shareholders in a corporation with a
single majority shareholder is
important: ‘‘For purposes of assessing
levels of minority ownership * * * we
believe that we should err on the side
of comprehensiveness based on
criticisms of the current collection
scheme. The minority interests that are
exempt from attribution under the
single majority shareholder exemption
can be quite substantial—nearly 50%.
Including these interest holders would
make the data set more complete and
help determine whether nonattributable
interests could be a source of
attributable minority and female owners
in the future. Thus, collection of this
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information will be useful in assessing
whether we need to take additional
measures to increase minority
ownership and in justifying any
measures that we decide to take.’’ The
FCC proposes to require that voting
stock interests that would be
attributable but for the single majority
stockholder exemption be reported on
the biennial Form 323.
3. As is the case now, whether the
holders of these direct or indirect
interests in licensees that are held in
vertical ownership chains will have to
file a Form 323 themselves or will
simply have their interest reported on a
Form 323 filed by another entity would
depend on the nature of the
shareholder. Individuals holding such
interests in licensees or in entities that
hold interests in licensees would be
reported on the Form 323 filed by the
entity in which they hold the interest
and would not have to file a form
themselves. Corporations, partnerships,
or other entities holding such interests
in licensees or in entities that directly
or indirectly hold interests in licensees,
however, would both be reported on the
Form 323 filed by the entity in which
they hold the interest and would be
required to file a Form 323 on their own
behalf, using the same biennial Form
323 as all other filers would use and
following the same format and
instructions. The distinction made here
between individuals and entities for
purposes of the Form 323 filing
obligation is the same distinction that
applies under the current rules. The
Commission seeks comment on this
proposal.
4. Under the Commission’s EDP
standard, an interest is deemed
attributable if, aggregating both equity
and debt, the interest exceeds 33
percent of the total asset value (all
equity plus all debt) of a broadcast
station licensee, cable television system,
daily newspaper or other media outlet
subject to the Commission’s broadcast
multiple ownership or cross-ownership
rules—and the interest holder also: (1)
Holds an attributable interest in another
media outlet in the same market that is
subject to the multiple or crossownership rules; or (2) supplies over 15
percent of the total weekly broadcast
programming hours of the station in
which the interest is held. In the
Diversity Order, the Commission
adopted a mechanism to allow an
interest holder to exceed the 33 percent
threshold without triggering attribution
if the investment would enable an
‘‘eligible entity’’ (as that term is defined
in the Diversity Order) to acquire a
broadcast station, provided that: (1) The
combined equity and debt of the interest
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holder in the eligible entity is less than
50 percent; or (2) the total debt of the
interest holder in the eligible entity does
not exceed 80 percent of the asset value
of the station being acquired by the
eligible entity and the interest holder
does not hold any equity interest, option
or promise to acquire an equity interest,
option or promise to acquire an entity
interest in the eligible entity or any
related entity.
5. In order to obtain more complete
ownership data, the Commission
proposes that interest that would be
attributable but for the recently adopted
EDP exemption for certain investments
in eligible entities be reported on the
biennial Form 323. In the 323 Order, the
Commission noted that it ‘‘did not
premise its relaxation of the EDP
attribution rule on a finding that such
an interest holder is unable to exert
significant influence in the licensee but
rather on a policy decision that relaxing
the EDP rule is necessary to facilitate
access to capital by eligible entities,
including minority- and female-owned
businesses.’’ The Commission also
noted that it already has determined
that interests that exceed 33 percent
EDP threshold confer on the interest
holder an ability to influence a
licensee’s operations. While we do not
believe there are many ownership
interests held pursuant to this
exemption, they are clearly interests
within the scope of our concern in this
proceeding. For this reason, we propose
to require that they be reported. With
respect to which interest holders will be
report and which will also file Form
323, we propose to apply the same
distinction discussed in paragraph 18 of
the 5th FNPRM. Thus, individuals
holding these interests would have to be
reported by the entity in which the
interest is directly held but would not
themselves have to file the separate
ownership reports and be reported by
the entity in which the interest is
directly held.
6. Will collection of race, ethnicity,
and gender data on the holders of these
two nonattributable interests further the
Commission’s goals to obtain reliable
data on the precise status of minority
and female ownership? NAB suggests
that information from nonattributable
entities will not provide the
Commission with any useful
information on the current status of
minority and female ownership of
broadcast stations. We seek comment on
this view. NAB states that by excluding
these interests from its attribution rules,
the Commission has already determined
that such interests fail to confer
sufficient influence over a licensee’s
operations. Therefore, NAB questions
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how the ownership information will
further the Commission’s stated goals.
We seek comment on NAB’s position
and on all aspects of our proposals.
7. We also seek comment on any
adverse consequences of requiring
reporting of individuals holding these
nonattributable interests and of
requiring entities holding these
nonattributable interests to file separate
Form 323s. We seek comment
specifically on NAB’s concern that the
reporting requirement will deter
investment in the broadcast industry by
increasing investors’ administrative and
financial burdens and by requiring
disclosure of information that they
would otherwise consider private. CBS
argues that the potential costs and other
burdens of compliance with these
reporting requirements could persuade
nonattributable investors to invest
elsewhere or even divest their existing
ownership interests. We seek comment
on these contentions. In the 323 Order,
the Commission explained that our
attribution rules seek to identify
financial interests in licensees that
convey the potential and incentive to
exert significant influence over core
licensee functions, and thus should be
counted under the multiple ownership
rules. At the same time, however, the
Commission noted that it has sought to
target the attribution rules precisely so
as to avoid impeding capital flow to
broadcasters. The Commission
concluded that, in this instance, the
concern about impeding capital flow
does not apply, and noted that the
Commission’s goal is to collect
information so that we can accurately
assess and effectively promote diversity
of ownership in the broadcast industry.
We seek comment on whether a
reporting requirement of nonattributable interests would adversely
affect capital investment in
broadcasting.
8. We seek comment on whether
expanding the reporting requirements to
include the two non-attributable
interests we have identified will result
in undue burdens on licensees, and in
particular, small entities. The
Commission recognized that it must
balance the goal of collecting more
comprehensive and more accurate data
with the goal of minimizing burdens on
respondents. In the 323 Order, the
Commission explained that broadcasters
are familiar with and accustomed to
keeping records in accordance with the
Commission’s existing attribution rules,
which provide useful, fairly bright-line
criteria to determine which interests
must be reported and which interests do
not need to be reported. CBS suggests
that broadcasters often do not possess
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the reportable information because
publicly traded companies may have
limited knowledge of the demographic
information of a majority of
shareholders, and may not know the
underlying beneficial owners when the
stocks are held by banks or other
financial institutions. We seek comment
on whether licensees or other entities
required to file revised Form 323
currently possess information on
minority shareholders of single majority
shareholder corporations. If not, what is
the burden of collecting this
information? Will licensees, parent
corporations, or other entity filers have
to obtain specialized counsel and
conduct additional surveys to comply
with the reporting requirement, as
suggested by CBS? We seek comment on
whether the benefits of obtaining
comprehensive minority and female
ownership data outweigh the increased
burden on respondents. Are alternatives
available to reduce the filing burden
without reducing the accuracy or
completeness of the data?
9. We also seek comment on NAB’s
suggestion that, if the Commission
adopts the reporting requirement
discussed above, it should limit the
reportable information to race, gender,
and ownership percentage of the
nonattributable investors, rather than
full reporting of their names, addresses,
familial relationships, and other media
holdings. Would data thus limited
provide the Commission and outside
researchers with sufficient information
to conduct studies? If information on
nonattributable media holdings is
omitted, as suggested by NAB, would
the Commission lack sufficient
information to accurately determine the
universe of minority and female
ownership in broadcasting?
II. Procedural Matters
10. Ex Parte Rules. The proceeding
this 5th Further Notice of Proposed
Rulemaking initiates shall be treated as
a ‘‘permit-but-disclose’’ proceeding in
accordance with the Commission’s ex
parte rules. Persons making ex parte
presentations must file a copy of any
written presentation or a memorandum
summarizing any oral presentation
within two business days after the
presentation (unless a different deadline
applicable to the Sunshine period
applies). Persons making oral ex parte
presentations are reminded that
memoranda summarizing the
presentation must (1) list all persons
attending or otherwise participating in
the meeting at which the ex parte
presentation was made, and (2)
summarize all data presented and
arguments made during the
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presentation. If the presentation
consisted in whole or in part of the
presentation of data or arguments
already reflected in the presenter’s
written comments, memoranda or other
filings in the proceeding, the presenter
may provide citations to such data or
arguments in his or her prior comments,
memoranda, or other filings (specifying
the relevant page and/or paragraph
numbers where such data or arguments
can be found) in lieu of summarizing
them in the memorandum. Documents
shown or given to Commission staff
during ex parte meetings are deemed to
be written ex parte presentations and
must be filed consistent with rule
1.1206(b). In proceedings governed by
rule 1.49(f) or for which the
Commission has made available a
method of electronic filing, written ex
parte presentations and memoranda
summarizing oral ex parte
presentations, and all attachments
thereto, must be filed through the
electronic comment filing system
available for that proceeding, and must
be filed in their native format (e.g., .doc,
.xml, .ppt, searchable .pdf). Participants
in this proceeding should familiarize
themselves with the Commission’s ex
parte rules.
11. Comments and Reply Comments.
Pursuant to §§ 1.415 and 1.419 of the
Commission’s rules, 47 CFR 1.415,
1.419, interested parties may file
comments and reply comments on or
before the dates indicated on the first
page of this document. Comments may
be filed using the Commission’s
Electronic Comment Filing System
(ECFS). See Electronic Filing of
Documents in Rulemaking Proceedings,
63 FR 24121 (1998).
D Electronic Filers: Comments may be
filed electronically using the Internet by
accessing the ECFS: https://
fjallfoss.fcc.gov/ecfs2/.
D Paper Filers: Parties who choose to
file by paper must file an original and
one copy of each filing. If more than one
docket or rulemaking number appears in
the caption of this proceeding, filers
must submit two additional copies for
each additional docket or rulemaking
number. Filings can be sent by hand or
messenger delivery, by commercial
overnight courier, or by first-class or
overnight U.S. Postal Service mail. All
filings must be addressed to the
Commission’s Secretary, Office of the
Secretary, Federal Communications
Commission.
D All hand-delivered or messengerdelivered paper filings for the
Commission’s Secretary must be
delivered to FCC Headquarters at 445
12th Street SW., Room TW–A325,
Washington, DC 20554. The filing hours
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are 8:00 a.m. to 7:00 p.m. All hand
deliveries must be held together with
rubber bands or fasteners. Any
envelopes and boxes must be disposed
of before entering the building.
D Commercial overnight mail (other
than U.S. Postal Service Express Mail
and Priority Mail) must be sent to 9300
East Hampton Drive, Capitol Heights,
MD 20743.
D U.S. Postal Service first-class,
Express, and Priority mail must be
addressed to 445 12th Street SW.,
Washington, DC 20554.
12. People with Disabilities: To
request materials in accessible formats
for people with disabilities (braille,
large print, electronic files, audio
format), send an email to fcc504@fcc.gov
or call the Consumer & Governmental
Affairs Bureau at 202–418–0530 (voice),
202–418–0432 (tty).
Initial Regulatory Flexibility Analysis
13. As required by the Regulatory
Flexibility Act of 1980, as amended
(‘‘RFA’’), the Commission has prepared
this Initial Regulatory Flexibility
Analysis (‘‘IRFA’’) of the possible
economic impact on small entities by
the policies and rules proposed in this
Fifth FNPRM. The RFA, see 5 U.S.C.
601–612, was amended by the Small
Business Regulatory Enforcement
Fairness Act of 1996 (‘‘SBREFA’’),
Public Law 104–121, Title II, 110 Stat.
857 (1996). Written public comments
are requested on this IRFA. Comments
must be identified as responses to the
IRFA and must be filed by the deadlines
for comments on the first page of this
document. The Commission will send a
copy of the Notice, including this IRFA,
to the Chief Counsel for Advocacy of the
Small Business Administration
(‘‘SBA’’).
14. Need for, and Objectives of, the
Proposed Rules. The Fifth FNPRM
invites comment on proposed revisions
to FCC Form 323 that would require
entities that hold financial interests that
would constitute attributable interests
in the licensee (1) but for the single
majority shareholder attribution
exemption or (2) the higher Equity/Debt
Plus threshold adopted in the Diversity
Order for purposes of attributing certain
interests in eligible entities to file
ownership reports biennially and would
require reporting in biennial ownership
reports of individuals that hold such
interests. Consistent with current filing
requirements, an individual holding an
ownership interest is not required to file
Form 323. The objective of the
information collection is to obtain
comprehensive ownership data to
further the Commission’s goal to design
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policies to advance diversity in the
broadcast industry.
15. Legal Basis. This Fifth FNPRM is
adopted pursuant to sections 1, 2(a), 3,
4(i)–(j), 257, and 303(r), of the
Communications Act of 1934, as
amended, 47 U.S.C. 151, 152(a), 153,
154(i, j), 257, 303.
16. Description and Estimate of the
Number of Small Entities To Which the
Proposed Rules Will Apply. The RFA
directs agencies to provide a description
of, and, where feasible, an estimate of
the number of small entities that may be
affected by the proposed rules, if
adopted. The RFA defines the term
‘‘small entity’’ as having the same
meaning as the terms ‘‘small business,’’
‘‘small organization,’’ and ‘‘small
governmental entity’’ under Section 3 of
the Small Business Act. In addition, the
term ‘‘small business’’ has the same
meaning as the term ‘‘small business
concern’’ under the Small Business Act.
Pursuant to 5 U.S.C. 601(3), the
statutory definition of a small business
applies ‘‘unless an agency, after
consultation with the Office of
Advocacy of the Small Business
Administration and after opportunity
for public comment, establishes one or
more definition of such term which are
appropriate to the activities of the
agency and publishes such definition(s)
in the Federal Register.’’ 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.
17. Television Broadcasting. In this
context, the application of the statutory
definition to television stations is of
concern. The Small Business
Administration defines a television
broadcasting station that has no more
than $14 million in annual receipts as
a small business. Business concerns
included in this industry are those
‘‘primarily engaged in broadcasting
images together with sound.’’ This
category description states: ‘‘These
establishments operate television
broadcasting studios and facilities for
the programming and transmission of
programs to the public.’’ In the Fifth
NPRM, the Commission noted that upon
review of the BIA Kelsey Inc. Media
Access Pro Television Database, as of
August 14, 2009 there were about 923
(72 percent) of the 1,289 commercial
television stations in the United States
with revenues of $14 million or less.
These statistics will be updated in a
subsequent FRFA. The Commission
notes that in assessing whether a
business entity qualifies as small under
the above definition, business control
affiliations must be included.
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‘‘[Businesses] are affiliates of each other
when one [business] controls or has the
power to control the other or a third
party or parties controls or has the
power to control both.’’ The
Commission’s estimate, therefore, likely
overstates the number of small entities
that might be affected by any changes to
the filing requirements for FCC Form
323, because the revenue figures on
which this estimate is based do not
include or aggregate revenues from
affiliated companies.
18. An element of the definition of
‘‘small business’’ is that the entity not
be dominant in its field of operation.
The Commission is unable at this time
and in this context to define or quantify
the criteria that would establish whether
a specific television station is dominant
in its market of operation. Accordingly,
the foregoing estimate of small
businesses to which the rules may apply
does not exclude any television stations
from the definition of a small business
on this basis and is therefore overinclusive to that extent. An additional
element of the definition of ‘‘small
business’’ is that the entity must be
independently owned and operated. It is
difficult at times to assess these criteria
in the context of media entities, and the
Commission’s estimates of small
businesses to which they apply may be
over-inclusive to this extent.
19. Radio Broadcasting. The Small
Business Administration defines a radio
broadcasting entity that has $7 million
or less in annual receipts as a small
business. Business concerns included in
this industry are those ‘‘primarily
engaged in broadcasting aural programs
by radio to the public.’’ According to
Commission staff review of the BIA
Kelsey Inc. Media Access Radio
Analyzer Database as of August 14,
2009, there were about 10,660 (96
percent) of 11,100 commercial radio
stations in the United States with
revenues of $7 million or less. These
statistics will be updated in a
subsequent FRFA. The Commission
notes that in assessing whether a
business entity qualifies as small under
the above definition, business control
affiliations must be included.
‘‘[Businesses] are affiliates of each other
when one [business] controls or has the
power to control the other, or a third
party or parties controls or has the
power to control both.’’ The
Commission’s estimate, therefore, likely
overstates the number of small entities
that might be affected by any changes to
the ownership rules, because the
revenue figures on which this estimate
is based do not include or aggregate
revenues from affiliated companies.
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20. In this context, the application of
the statutory definition to radio stations
is of concern. An element of the
definition of ‘‘small business’’ is that the
entity not be dominant in its field of
operation. The FCC is unable at this
time and in this context to define or
quantify the criteria that would
establish whether a specific radio
station is dominant in its field of
operation. Accordingly, the foregoing
estimate of small businesses to which
the rules may apply does not exclude
any radio station from the definition of
a small business on this basis and is
therefore over-inclusive to that extent.
An additional element of the definition
of ‘‘small business’’ is that the entity
must be independently owned and
operated. The Commission notes that it
is difficult at times to assess these
criteria in the context of media entities,
and the Commission’s estimates of small
businesses to which they apply may be
over-inclusive to this extent.
21. Class A TV and LPTV stations.
The rules and policies adopted herein
apply to licensees of Class A TV stations
and low power television (‘‘LPTV’’)
stations, as well as to potential licensees
in these television services. The same
SBA definition that applies to television
broadcast licensees would apply to
these stations. The SBA defines a
television broadcast station as a small
business if such station has no more
than $14.0 million in annual receipts.
As of June 30, 2009, there were
approximately 553 licensed Class A
stations and 2,386 licensed LPTV
stations. Given the nature of these
services, the Commission will presume
that all of these licensees qualify as
small entities under the SBA definition.
These statistics will be updated in a
subsequent FRFA. The Commission
notes, however, that under the SBA’s
definition, revenue of affiliates that are
not LPTV stations should be aggregated
with the LPTV station revenues in
determining whether a concern is small.
The Commission’s estimate may thus
overstate the number of small entities
since the revenue figure on which it is
based does not include or aggregate
revenues from non-LPTV affiliated
companies.
22. Description of Projected
Reporting, Recordkeeping, and Other
Compliance Requirements. The
Commission anticipates that changes in
recording or recordkeeping
requirements for commercial broadcast
entities would result from the changes
in the Commission’s Form 323
necessary to implement the proposal to
collect additional investor information.
Entities holding two types of
nonattributable interests, as described in
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the Fifth FNPRM, would be required to
file Form 323, and individuals holding
these interests would have to be
reported on Form 323.
23. Steps Taken to Minimize
Significant Impact on Small Entities,
and Significant Alternatives Considered.
The RFA requires an agency to describe
any significant alternatives that might
minimize any significant economic
impact on small entities. Such
alternatives may include the following
four alternatives (among others): (1) The
establishment of differing compliance or
reporting requirements or timetables
that take into account the resources
available to small entities; (2) the
clarification, consolidation, or
simplification of compliance and
reporting requirements under the rule
for small entities; (3) the use of
performance, rather than design,
standards; and (4) an exemption from
coverage of the rule, or any part thereof,
for small entities.
24. As noted, the Commission is
directed under law to describe any such
alternatives it considers, including
alternatives not explicitly listed above.
The Fifth FNPRM seeks comment on the
VerDate Mar<15>2010
16:42 Jan 14, 2013
Jkt 229001
tentative conclusion that obtaining
certain nonattributable financial
interests would further its goal to design
policies to advance diversity in the
broadcast industry. In the alternative,
the Commission could defer until a later
time collection of such information or
not require reporting of such
information. The Fifth FNPRM also
seeks comment on whether the
proposed data collection would impose
a significant reporting, recordkeeping,
or other compliance burden on
commercial broadcast entities,
especially smaller entities, and whether
there are alternative ways to minimize
burdens from this proposed reporting
requirement.
25. Federal Rules that May Duplicate,
Overlap, or Conflict With the Proposed
Rules
None.
III. Ordering Clauses
26. Accordingly, it is ordered that,
pursuant to the authority contained in
sections 1, 2(a), 4(i)–(j), 257, and 303(r)
of the Communications Act of 1934, as
amended, 47 U.S.C. 151, 152(a), 154(i)–
(j), 257, and 303(r), the Fifth FNPRM is
adopted.
PO 00000
Frm 00031
Fmt 4702
Sfmt 9990
27. It is further ordered that, pursuant
to the authority contained in sections 1,
2(a), 4(i, j), 257, and 303(r) of the
Communications Act of 1934, as
amended, 47 U.S.C. 151, 152(a), 154(i,
j), 257, 303(r), notice is hereby given of
the proposals described in this Fifth
FNPRM.
28. It is further ordered that the
Commission’s Consumer and
Governmental Affairs Bureau, Reference
Information Center, shall send a copy of
the Fifth FNPRM, including the Initial
Regulatory Flexibility Analysis, to the
Chief Counsel for Advocacy of the Small
Business Administration.
29. It is further ordered that the
Commission shall send a copy of the
Fifth FNPRM in a report to be sent to
Congress and the Government
Accountability Office pursuant to the
Congressional Review Act, see 5 U.S.C.
801(a)(1)(A).
Federal Communications Commission.
Cecilia Sigmund,
Associate Secretary (Acting).
[FR Doc. 2013–00574 Filed 1–14–13; 8:45 am]
BILLING CODE 6712–01–P
E:\FR\FM\15JAP1.SGM
15JAP1
Agencies
[Federal Register Volume 78, Number 10 (Tuesday, January 15, 2013)]
[Proposed Rules]
[Pages 2934-2938]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-00574]
-----------------------------------------------------------------------
FEDERAL COMMUNICATIONS COMMISSION
47 CFR Part 73
[MB Docket Nos. 07-294, 06-121, 02-277, 04-228; MM Docket Nos. 01-235,
01-317, 00-244; FCC 09-92]
Promoting Diversification of Ownership in the Broadcasting
Services
AGENCY: Federal Communications Commission.
ACTION: Notice of proposed rulemaking.
-----------------------------------------------------------------------
SUMMARY: The Commission seeks comment on whether to collect information
from holders of equity interests in a licensee that would be
attributable but for the single majority shareholder exemption and from
holders of interests that would be attributable but for the higher EDP
thresholds adopted in the Diversity Order, published May 16, 2008, for
purposes of determining attribution of certain interests in eligible
entities.
DATES: The Commission must receive written comments on or before
February 14, 2013 and reply comments on or before March 1, 2013.
Written comments on the Paperwork Reduction Act (PRA) proposed
information collection requirements must be submitted by the public,
Office of Management (OMB) and other interested parties on or before
March 18, 2013.
ADDRESSES: You may submit comments, identified by MB Docket. No. 07-
294, by any of the following methods:
Federal Communications Commission's Web Site: https://fjallfoss.fcc.gov/ecfs2/. Follow the instructions for submitting
comments.
People with Disabilities: Contact the FCC to request
reasonable accommodations (accessible format documents, sign language
interpreters, CART, etc.) by email: FCC504@fcc.gov or phone 202-418-
0530 or TTY: 202-418-0432.
For detailed instructions for submitting comments and additional
information on the rulemaking process, see the SUPPLEMENTARY
INFORMATION section of this document.
FOR FURTHER INFORMATION CONTACT: For additional information on this
proceeding, contact Judith Herman of the Media Bureau, Industry
Analysis Division, at (202) 418-2330. For additional information
concerning the Paperwork Reduction Act information collection
requirements contained in the Notice of Proposed Rulemaking contact
Cathy Williams at (202) 418-2918 or send an email to PRA@fcc.gov.
SUPPLEMENTARY INFORMATION: This is a summary of the Commission's Fifth
Notice of Proposed Rulemaking in MB Docket No. 07-294 is available for
public inspection and copying during regular business hours in the FCC
Reference Center, Federal Communications Commission, 445 12th Street
SW., Washington, DC 20554. These documents will also be available via
ECFS (https://fjallfoss.fcc.gov/ecfs/) and may be purchased from the
Commissions copy contractor, BCPI, Inc. at their Web site https://www.bcpi.com or call 1-800 378-3160.
Initial Paperwork Reduction Act of 1995 Analysis
This Notice of Proposed Rulemaking may result in a new or revised
information collection requirement. If the Commission adopts any new or
revised information collection requirements, the Commission will
publish a notice in the Federal Register inviting the public to comment
on the requirement, as required by the Paperwork Reduction Act of 1995,
Public Law 104-13 (44 U.S.C. 3501-3520). In addition, pursuant to the
Small Business Paperwork Relief Act of 2002, Public Law 107-198, see 44
U.S.C. 3506(c)(4), the commission seeks further comment on how it might
``further reduce the information collection burden for small business
concerns with fewer than 25 employees.''
I. Introduction
1. The Commission seeks comment on whether to collect information
from holders of equity interests in a licensee that would be
attributable but for the single majority shareholder exemption and from
holders of interests that would be attributable but for the higher EDP
thresholds adopted in the Diversity Order, published May 16, 2008, 73
FR 28361, for purposes of determining attribution of certain interests
in eligible entities. In the 323 Order, 74 FR 25163 (2009), the
Commission determined that, in order to measure the extent of minority
and female ownership of broadcast outlets and assess the need for and
effectiveness of any policies designed to promote minority and female
ownership, it is important to obtain information on holders of certain
nonattributable interests, as well as on holders of attributable
interests. The Commission concluded that while it considers only
attributable interest holders in determining whether licensees are in
compliance with our media ownership rules, the balance struck in
defining what interests should be counted for purposes of implementing
our ownership rules may not be appropriate for collecting data on
interests held by minorities and women. As noted above, we did not
receive comments on this issue prior to adopting these conclusions.
Therefore, in order to obtain a complete record on this question, we
are commencing a Further Rulemaking on whether to expand the reporting
requirements to include certain nonattributable entities. Specifically,
we seek comment on whether to collect information from holders of
equity interests in a licensee that would be attributable but for the
single majority shareholder exemption and from holders of interests
that would be attributable but for the higher EDP thresholds adopted in
the Diversity Order for purposes of determining attribution of certain
interests in eligible entities.
2. The single majority shareholder exemption provides that a
minority shareholder's voting interests will not be attributed where a
single shareholder holds more than 50 percent of the outstanding voting
stock of the corporation in question. In the 323 Order, the Commission
explained why reporting of information about minority shareholders in a
corporation with a single majority shareholder is important: ``For
purposes of assessing levels of minority ownership * * * we believe
that we should err on the side of comprehensiveness based on criticisms
of the current collection scheme. The minority interests that are
exempt from attribution under the single majority shareholder exemption
can be quite substantial--nearly 50%. Including these interest holders
would make the data set more complete and help determine whether
nonattributable interests could be a source of attributable minority
and female owners in the future. Thus, collection of this
[[Page 2935]]
information will be useful in assessing whether we need to take
additional measures to increase minority ownership and in justifying
any measures that we decide to take.'' The FCC proposes to require that
voting stock interests that would be attributable but for the single
majority stockholder exemption be reported on the biennial Form 323.
3. As is the case now, whether the holders of these direct or
indirect interests in licensees that are held in vertical ownership
chains will have to file a Form 323 themselves or will simply have
their interest reported on a Form 323 filed by another entity would
depend on the nature of the shareholder. Individuals holding such
interests in licensees or in entities that hold interests in licensees
would be reported on the Form 323 filed by the entity in which they
hold the interest and would not have to file a form themselves.
Corporations, partnerships, or other entities holding such interests in
licensees or in entities that directly or indirectly hold interests in
licensees, however, would both be reported on the Form 323 filed by the
entity in which they hold the interest and would be required to file a
Form 323 on their own behalf, using the same biennial Form 323 as all
other filers would use and following the same format and instructions.
The distinction made here between individuals and entities for purposes
of the Form 323 filing obligation is the same distinction that applies
under the current rules. The Commission seeks comment on this proposal.
4. Under the Commission's EDP standard, an interest is deemed
attributable if, aggregating both equity and debt, the interest exceeds
33 percent of the total asset value (all equity plus all debt) of a
broadcast station licensee, cable television system, daily newspaper or
other media outlet subject to the Commission's broadcast multiple
ownership or cross-ownership rules--and the interest holder also: (1)
Holds an attributable interest in another media outlet in the same
market that is subject to the multiple or cross-ownership rules; or (2)
supplies over 15 percent of the total weekly broadcast programming
hours of the station in which the interest is held. In the Diversity
Order, the Commission adopted a mechanism to allow an interest holder
to exceed the 33 percent threshold without triggering attribution if
the investment would enable an ``eligible entity'' (as that term is
defined in the Diversity Order) to acquire a broadcast station,
provided that: (1) The combined equity and debt of the interest holder
in the eligible entity is less than 50 percent; or (2) the total debt
of the interest holder in the eligible entity does not exceed 80
percent of the asset value of the station being acquired by the
eligible entity and the interest holder does not hold any equity
interest, option or promise to acquire an equity interest, option or
promise to acquire an entity interest in the eligible entity or any
related entity.
5. In order to obtain more complete ownership data, the Commission
proposes that interest that would be attributable but for the recently
adopted EDP exemption for certain investments in eligible entities be
reported on the biennial Form 323. In the 323 Order, the Commission
noted that it ``did not premise its relaxation of the EDP attribution
rule on a finding that such an interest holder is unable to exert
significant influence in the licensee but rather on a policy decision
that relaxing the EDP rule is necessary to facilitate access to capital
by eligible entities, including minority- and female-owned
businesses.'' The Commission also noted that it already has determined
that interests that exceed 33 percent EDP threshold confer on the
interest holder an ability to influence a licensee's operations. While
we do not believe there are many ownership interests held pursuant to
this exemption, they are clearly interests within the scope of our
concern in this proceeding. For this reason, we propose to require that
they be reported. With respect to which interest holders will be report
and which will also file Form 323, we propose to apply the same
distinction discussed in paragraph 18 of the 5th FNPRM. Thus,
individuals holding these interests would have to be reported by the
entity in which the interest is directly held but would not themselves
have to file the separate ownership reports and be reported by the
entity in which the interest is directly held.
6. Will collection of race, ethnicity, and gender data on the
holders of these two nonattributable interests further the Commission's
goals to obtain reliable data on the precise status of minority and
female ownership? NAB suggests that information from nonattributable
entities will not provide the Commission with any useful information on
the current status of minority and female ownership of broadcast
stations. We seek comment on this view. NAB states that by excluding
these interests from its attribution rules, the Commission has already
determined that such interests fail to confer sufficient influence over
a licensee's operations. Therefore, NAB questions how the ownership
information will further the Commission's stated goals. We seek comment
on NAB's position and on all aspects of our proposals.
7. We also seek comment on any adverse consequences of requiring
reporting of individuals holding these nonattributable interests and of
requiring entities holding these nonattributable interests to file
separate Form 323s. We seek comment specifically on NAB's concern that
the reporting requirement will deter investment in the broadcast
industry by increasing investors' administrative and financial burdens
and by requiring disclosure of information that they would otherwise
consider private. CBS argues that the potential costs and other burdens
of compliance with these reporting requirements could persuade
nonattributable investors to invest elsewhere or even divest their
existing ownership interests. We seek comment on these contentions. In
the 323 Order, the Commission explained that our attribution rules seek
to identify financial interests in licensees that convey the potential
and incentive to exert significant influence over core licensee
functions, and thus should be counted under the multiple ownership
rules. At the same time, however, the Commission noted that it has
sought to target the attribution rules precisely so as to avoid
impeding capital flow to broadcasters. The Commission concluded that,
in this instance, the concern about impeding capital flow does not
apply, and noted that the Commission's goal is to collect information
so that we can accurately assess and effectively promote diversity of
ownership in the broadcast industry. We seek comment on whether a
reporting requirement of non-attributable interests would adversely
affect capital investment in broadcasting.
8. We seek comment on whether expanding the reporting requirements
to include the two non-attributable interests we have identified will
result in undue burdens on licensees, and in particular, small
entities. The Commission recognized that it must balance the goal of
collecting more comprehensive and more accurate data with the goal of
minimizing burdens on respondents. In the 323 Order, the Commission
explained that broadcasters are familiar with and accustomed to keeping
records in accordance with the Commission's existing attribution rules,
which provide useful, fairly bright-line criteria to determine which
interests must be reported and which interests do not need to be
reported. CBS suggests that broadcasters often do not possess
[[Page 2936]]
the reportable information because publicly traded companies may have
limited knowledge of the demographic information of a majority of
shareholders, and may not know the underlying beneficial owners when
the stocks are held by banks or other financial institutions. We seek
comment on whether licensees or other entities required to file revised
Form 323 currently possess information on minority shareholders of
single majority shareholder corporations. If not, what is the burden of
collecting this information? Will licensees, parent corporations, or
other entity filers have to obtain specialized counsel and conduct
additional surveys to comply with the reporting requirement, as
suggested by CBS? We seek comment on whether the benefits of obtaining
comprehensive minority and female ownership data outweigh the increased
burden on respondents. Are alternatives available to reduce the filing
burden without reducing the accuracy or completeness of the data?
9. We also seek comment on NAB's suggestion that, if the Commission
adopts the reporting requirement discussed above, it should limit the
reportable information to race, gender, and ownership percentage of the
nonattributable investors, rather than full reporting of their names,
addresses, familial relationships, and other media holdings. Would data
thus limited provide the Commission and outside researchers with
sufficient information to conduct studies? If information on
nonattributable media holdings is omitted, as suggested by NAB, would
the Commission lack sufficient information to accurately determine the
universe of minority and female ownership in broadcasting?
II. Procedural Matters
10. Ex Parte Rules. The proceeding this 5th Further Notice of
Proposed Rulemaking initiates shall be treated as a ``permit-but-
disclose'' proceeding in accordance with the Commission's ex parte
rules. Persons making ex parte presentations must file a copy of any
written presentation or a memorandum summarizing any oral presentation
within two business days after the presentation (unless a different
deadline applicable to the Sunshine period applies). Persons making
oral ex parte presentations are reminded that memoranda summarizing the
presentation must (1) list all persons attending or otherwise
participating in the meeting at which the ex parte presentation was
made, and (2) summarize all data presented and arguments made during
the presentation. If the presentation consisted in whole or in part of
the presentation of data or arguments already reflected in the
presenter's written comments, memoranda or other filings in the
proceeding, the presenter may provide citations to such data or
arguments in his or her prior comments, memoranda, or other filings
(specifying the relevant page and/or paragraph numbers where such data
or arguments can be found) in lieu of summarizing them in the
memorandum. Documents shown or given to Commission staff during ex
parte meetings are deemed to be written ex parte presentations and must
be filed consistent with rule 1.1206(b). In proceedings governed by
rule 1.49(f) or for which the Commission has made available a method of
electronic filing, written ex parte presentations and memoranda
summarizing oral ex parte presentations, and all attachments thereto,
must be filed through the electronic comment filing system available
for that proceeding, and must be filed in their native format (e.g.,
.doc, .xml, .ppt, searchable .pdf). Participants in this proceeding
should familiarize themselves with the Commission's ex parte rules.
11. Comments and Reply Comments. Pursuant to Sec. Sec. 1.415 and
1.419 of the Commission's rules, 47 CFR 1.415, 1.419, interested
parties may file comments and reply comments on or before the dates
indicated on the first page of this document. Comments may be filed
using the Commission's Electronic Comment Filing System (ECFS). See
Electronic Filing of Documents in Rulemaking Proceedings, 63 FR 24121
(1998).
[ssquf] Electronic Filers: Comments may be filed electronically
using the Internet by accessing the ECFS: https://fjallfoss.fcc.gov/ecfs2/.
[ssquf] Paper Filers: Parties who choose to file by paper must file
an original and one copy of each filing. If more than one docket or
rulemaking number appears in the caption of this proceeding, filers
must submit two additional copies for each additional docket or
rulemaking number. Filings can be sent by hand or messenger delivery,
by commercial overnight courier, or by first-class or overnight U.S.
Postal Service mail. All filings must be addressed to the Commission's
Secretary, Office of the Secretary, Federal Communications Commission.
[ssquf] All hand-delivered or messenger-delivered paper filings for
the Commission's Secretary must be delivered to FCC Headquarters at 445
12th Street SW., Room TW-A325, Washington, DC 20554. The filing hours
are 8:00 a.m. to 7:00 p.m. All hand deliveries must be held together
with rubber bands or fasteners. Any envelopes and boxes must be
disposed of before entering the building.
[ssquf] Commercial overnight mail (other than U.S. Postal Service
Express Mail and Priority Mail) must be sent to 9300 East Hampton
Drive, Capitol Heights, MD 20743.
[ssquf] U.S. Postal Service first-class, Express, and Priority mail
must be addressed to 445 12th Street SW., Washington, DC 20554.
12. People with Disabilities: To request materials in accessible
formats for people with disabilities (braille, large print, electronic
files, audio format), send an email to fcc504@fcc.gov or call the
Consumer & Governmental Affairs Bureau at 202-418-0530 (voice), 202-
418-0432 (tty).
Initial Regulatory Flexibility Analysis
13. As required by the Regulatory Flexibility Act of 1980, as
amended (``RFA''), the Commission has prepared this Initial Regulatory
Flexibility Analysis (``IRFA'') of the possible economic impact on
small entities by the policies and rules proposed in this Fifth FNPRM.
The RFA, see 5 U.S.C. 601-612, was amended by the Small Business
Regulatory Enforcement Fairness Act of 1996 (``SBREFA''), Public Law
104-121, Title II, 110 Stat. 857 (1996). Written public comments are
requested on this IRFA. Comments must be identified as responses to the
IRFA and must be filed by the deadlines for comments on the first page
of this document. The Commission will send a copy of the Notice,
including this IRFA, to the Chief Counsel for Advocacy of the Small
Business Administration (``SBA'').
14. Need for, and Objectives of, the Proposed Rules. The Fifth
FNPRM invites comment on proposed revisions to FCC Form 323 that would
require entities that hold financial interests that would constitute
attributable interests in the licensee (1) but for the single majority
shareholder attribution exemption or (2) the higher Equity/Debt Plus
threshold adopted in the Diversity Order for purposes of attributing
certain interests in eligible entities to file ownership reports
biennially and would require reporting in biennial ownership reports of
individuals that hold such interests. Consistent with current filing
requirements, an individual holding an ownership interest is not
required to file Form 323. The objective of the information collection
is to obtain comprehensive ownership data to further the Commission's
goal to design
[[Page 2937]]
policies to advance diversity in the broadcast industry.
15. Legal Basis. This Fifth FNPRM is adopted pursuant to sections
1, 2(a), 3, 4(i)-(j), 257, and 303(r), of the Communications Act of
1934, as amended, 47 U.S.C. 151, 152(a), 153, 154(i, j), 257, 303.
16. Description and Estimate of the Number of Small Entities To
Which the Proposed Rules Will Apply. The RFA directs agencies to
provide a description of, and, where feasible, an estimate of the
number of small entities that may be affected by the proposed rules, if
adopted. The RFA defines the term ``small entity'' as having the same
meaning as the terms ``small business,'' ``small organization,'' and
``small governmental entity'' under Section 3 of the Small Business
Act. In addition, the term ``small business'' has the same meaning as
the term ``small business concern'' under the Small Business Act.
Pursuant to 5 U.S.C. 601(3), the statutory definition of a small
business applies ``unless an agency, after consultation with the Office
of Advocacy of the Small Business Administration and after opportunity
for public comment, establishes one or more definition of such term
which are appropriate to the activities of the agency and publishes
such definition(s) in the Federal Register.'' 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.
17. Television Broadcasting. In this context, the application of
the statutory definition to television stations is of concern. The
Small Business Administration defines a television broadcasting station
that has no more than $14 million in annual receipts as a small
business. Business concerns included in this industry are those
``primarily engaged in broadcasting images together with sound.'' This
category description states: ``These establishments operate television
broadcasting studios and facilities for the programming and
transmission of programs to the public.'' In the Fifth NPRM, the
Commission noted that upon review of the BIA Kelsey Inc. Media Access
Pro Television Database, as of August 14, 2009 there were about 923 (72
percent) of the 1,289 commercial television stations in the United
States with revenues of $14 million or less. These statistics will be
updated in a subsequent FRFA. The Commission notes that in assessing
whether a business entity qualifies as small under the above
definition, business control affiliations must be included.
``[Businesses] are affiliates of each other when one [business]
controls or has the power to control the other or a third party or
parties controls or has the power to control both.'' The Commission's
estimate, therefore, likely overstates the number of small entities
that might be affected by any changes to the filing requirements for
FCC Form 323, because the revenue figures on which this estimate is
based do not include or aggregate revenues from affiliated companies.
18. An element of the definition of ``small business'' is that the
entity not be dominant in its field of operation. The Commission is
unable at this time and in this context to define or quantify the
criteria that would establish whether a specific television station is
dominant in its market of operation. Accordingly, the foregoing
estimate of small businesses to which the rules may apply does not
exclude any television stations from the definition of a small business
on this basis and is therefore over-inclusive to that extent. An
additional element of the definition of ``small business'' is that the
entity must be independently owned and operated. It is difficult at
times to assess these criteria in the context of media entities, and
the Commission's estimates of small businesses to which they apply may
be over-inclusive to this extent.
19. Radio Broadcasting. The Small Business Administration defines a
radio broadcasting entity that has $7 million or less in annual
receipts as a small business. Business concerns included in this
industry are those ``primarily engaged in broadcasting aural programs
by radio to the public.'' According to Commission staff review of the
BIA Kelsey Inc. Media Access Radio Analyzer Database as of August 14,
2009, there were about 10,660 (96 percent) of 11,100 commercial radio
stations in the United States with revenues of $7 million or less.
These statistics will be updated in a subsequent FRFA. The Commission
notes that in assessing whether a business entity qualifies as small
under the above definition, business control affiliations must be
included. ``[Businesses] are affiliates of each other when one
[business] controls or has the power to control the other, or a third
party or parties controls or has the power to control both.'' The
Commission's estimate, therefore, likely overstates the number of small
entities that might be affected by any changes to the ownership rules,
because the revenue figures on which this estimate is based do not
include or aggregate revenues from affiliated companies.
20. In this context, the application of the statutory definition to
radio stations is of concern. An element of the definition of ``small
business'' is that the entity not be dominant in its field of
operation. The FCC is unable at this time and in this context to define
or quantify the criteria that would establish whether a specific radio
station is dominant in its field of operation. Accordingly, the
foregoing estimate of small businesses to which the rules may apply
does not exclude any radio station from the definition of a small
business on this basis and is therefore over-inclusive to that extent.
An additional element of the definition of ``small business'' is that
the entity must be independently owned and operated. The Commission
notes that it is difficult at times to assess these criteria in the
context of media entities, and the Commission's estimates of small
businesses to which they apply may be over-inclusive to this extent.
21. Class A TV and LPTV stations. The rules and policies adopted
herein apply to licensees of Class A TV stations and low power
television (``LPTV'') stations, as well as to potential licensees in
these television services. The same SBA definition that applies to
television broadcast licensees would apply to these stations. The SBA
defines a television broadcast station as a small business if such
station has no more than $14.0 million in annual receipts. As of June
30, 2009, there were approximately 553 licensed Class A stations and
2,386 licensed LPTV stations. Given the nature of these services, the
Commission will presume that all of these licensees qualify as small
entities under the SBA definition. These statistics will be updated in
a subsequent FRFA. The Commission notes, however, that under the SBA's
definition, revenue of affiliates that are not LPTV stations should be
aggregated with the LPTV station revenues in determining whether a
concern is small. The Commission's estimate may thus overstate the
number of small entities since the revenue figure on which it is based
does not include or aggregate revenues from non-LPTV affiliated
companies.
22. Description of Projected Reporting, Recordkeeping, and Other
Compliance Requirements. The Commission anticipates that changes in
recording or recordkeeping requirements for commercial broadcast
entities would result from the changes in the Commission's Form 323
necessary to implement the proposal to collect additional investor
information. Entities holding two types of nonattributable interests,
as described in
[[Page 2938]]
the Fifth FNPRM, would be required to file Form 323, and individuals
holding these interests would have to be reported on Form 323.
23. Steps Taken to Minimize Significant Impact on Small Entities,
and Significant Alternatives Considered. The RFA requires an agency to
describe any significant alternatives that might minimize any
significant economic impact on small entities. Such alternatives may
include the following four alternatives (among others): (1) The
establishment of differing compliance or reporting requirements or
timetables that take into account the resources available to small
entities; (2) the clarification, consolidation, or simplification of
compliance and reporting requirements under the rule for small
entities; (3) the use of performance, rather than design, standards;
and (4) an exemption from coverage of the rule, or any part thereof,
for small entities.
24. As noted, the Commission is directed under law to describe any
such alternatives it considers, including alternatives not explicitly
listed above. The Fifth FNPRM seeks comment on the tentative conclusion
that obtaining certain nonattributable financial interests would
further its goal to design policies to advance diversity in the
broadcast industry. In the alternative, the Commission could defer
until a later time collection of such information or not require
reporting of such information. The Fifth FNPRM also seeks comment on
whether the proposed data collection would impose a significant
reporting, recordkeeping, or other compliance burden on commercial
broadcast entities, especially smaller entities, and whether there are
alternative ways to minimize burdens from this proposed reporting
requirement.
25. Federal Rules that May Duplicate, Overlap, or Conflict With the
Proposed Rules
None.
III. Ordering Clauses
26. Accordingly, it is ordered that, pursuant to the authority
contained in sections 1, 2(a), 4(i)-(j), 257, and 303(r) of the
Communications Act of 1934, as amended, 47 U.S.C. 151, 152(a), 154(i)-
(j), 257, and 303(r), the Fifth FNPRM is adopted.
27. It is further ordered that, pursuant to the authority contained
in sections 1, 2(a), 4(i, j), 257, and 303(r) of the Communications Act
of 1934, as amended, 47 U.S.C. 151, 152(a), 154(i, j), 257, 303(r),
notice is hereby given of the proposals described in this Fifth FNPRM.
28. It is further ordered that the Commission's Consumer and
Governmental Affairs Bureau, Reference Information Center, shall send a
copy of the Fifth FNPRM, including the Initial Regulatory Flexibility
Analysis, to the Chief Counsel for Advocacy of the Small Business
Administration.
29. It is further ordered that the Commission shall send a copy of
the Fifth FNPRM in a report to be sent to Congress and the Government
Accountability Office pursuant to the Congressional Review Act, see 5
U.S.C. 801(a)(1)(A).
Federal Communications Commission.
Cecilia Sigmund,
Associate Secretary (Acting).
[FR Doc. 2013-00574 Filed 1-14-13; 8:45 am]
BILLING CODE 6712-01-P