Channel Sharing by Full Power and Class A Stations Outside the Broadcast Television Spectrum Incentive Auction Context, 67344-67346 [2015-27632]

Download as PDF 67344 Federal Register / Vol. 80, No. 211 / Monday, November 2, 2015 / Rules and Regulations one Standard Definition (SD) program stream at all times. * * * * * [FR Doc. 2015–27738 Filed 10–30–15; 8:45 am] BILLING CODE 6712–01–P FEDERAL COMMUNICATIONS COMMISSION 47 CFR Part 73 [GN Docket No. 12–268 and MB Docket No. 15–137; FCC 15–139] Channel Sharing by Full Power and Class A Stations Outside the Broadcast Television Spectrum Incentive Auction Context Federal Communications Commission. ACTION: Final rule. asabaliauskas on DSK5VPTVN1PROD with RULES AGENCY: SUMMARY: In this Second Order on Reconsideration, the Federal Communications Commission (Commission) provides more flexibility to broadcasters interested in the channel sharing option in the broadcast incentive auction by clarifying that back-up channel sharing agreements (‘‘CSAs’’) are permitted under its rules and providing more time for successful bidders to transition to shared facilities after the auction. The Commission also provides guidance regarding how the CSA exception to the prohibited communications rule applies with respect to back-up CSAs. DATES: Effective December 2, 2015. FOR FURTHER INFORMATION CONTACT: Shaun Maher, Shaun.Maher@fcc.gov of the Media Bureau, Video Division, (202) 418–2324. SUPPLEMENTARY INFORMATION: This is a summary of the Commission’s Second Order on Reconsideration, FCC 15–139, adopted October 21, 2015, in MB Docket No. 15–137. The full text of the Second Order on Reconsideration is available for inspection and copying during regular business hours in the FCC Reference Center, 445 12th Street SW., Room CY–A257, Portals II, Washington, DC 20554. This document is available in alternative formats (computer diskette, large print, audio record, and Braille). Persons with disabilities who need documents in these formats may contact the FCC by email: FCC504@fcc.gov or phone: 202–418–0530 or TTY: 202–418– 0432. Paperwork Reduction Act of 1995 Analysis: This Second Order on Reconsideration does not contain any additional new or modified information collection requirements subject to the Paperwork Reduction Act of 1995 VerDate Sep<11>2014 17:39 Oct 30, 2015 Jkt 238001 (‘‘PRA’’), Public Law 104–13, beyond those that were already in the Commission’s Incentive Auction Report and Order, 79 FR 48442–01 (Aug. 15, 2014) (‘‘Incentive Auction R&O’’). In addition, therefore, it does not contain any additional new or modified information collection burden for small business concerns with fewer than 25 employees, pursuant to the Small Business Paperwork Relief Act of 2002, Public Law 107–198, beyond those that were already in the Incentive Auction R&O. The Commission is seeking separate OMB approval for FCC Form 2100, Schedule B (for a full power station) and F (for a Class A station) and FCC Form 177. Synopsis 1. The Commission adopted rules for the broadcast incentive auction in the Incentive Auction R&O including rules for parties interested in entering into CSAs. The Commission recently modified those channel sharing rules to provide greater flexibility to stations considering that option. In this Second Order on Reconsideration, the Commission announces that the availability of back-up channel sharing arrangements would provide additional flexibility for stations considering channel sharing. In particular, it would enable both parties to a CSA to participate in the auction while mitigating the risk that the auction system could freeze both stations in the same round and thus deprive both stations of a post-auction host or ‘‘sharer’’ station. For some, the risk of being left without any spectrum on which to share may be too great and foreclose that kind of participation. The Commission concludes that a back-up CSA could mitigate that risk and encourage greater participation. 2. The Commission clarifies that, if both parties to a CSA participate in the auction, the rules allow either or both parties to also enter into a back-up CSA with one other station in the same DMA to act as the back-up host or sharer station. By allowing the parties to secure a fallback arrangement in the event that both parties relinquish their spectrum usage rights in the auction, this clarification will help promote wider participation in the auction by broadcasters that require assurance that they will remain on the air in the DMA. The Commission reminds parties that all of their auction-related activity and communications, including with respect to back-up CSAs, must adhere to the antitrust laws as well as the rules. 3. In the Second Order on Reconsideration, the Commission rejects PO 00000 Frm 00084 Fmt 4700 Sfmt 4700 the Broadcaster Representatives’ request to allow ‘‘contingent multi-party CSAs across multiple markets.’’ The Commission concludes that multimarket back-up CSAs are not necessary to address the uncertainty created if multiple parties to a particular CSA participate in the auction. Such a result would undermine the general goal of the rules prohibiting certain communications, which are intended to reinforce existing antitrust laws, facilitate the detection of collusive conduct, and assure incentive auction participants that the auction process will be fair and objective. The Commission restated that it crafted the CSA exception to apply on an agreement-by-agreement basis in order to encourage channel sharing relationships without undermining these objectives. 4. The Commission also clarifies that, consistent with the foregoing, the CSA exception to the reverse auction rule prohibiting certain communications applies only to communications between parties to a single CSA at any given time. Further, the CSA exception only applies to a CSA, including backup CSAs, if the CSA was entered into and filed with the Commission by the application deadline. If both stations pursuant to the primary CSA have a bidding status of ‘‘frozen—provisional winner,’’ i.e., the auction system determines that the station can never be assigned a feasible channel in its preauction band in the current stage, then parties to a back-up CSA may communicate regarding bids and bidding strategy and must cease communication of this type with the party to the original CSA. Prior to that point, the rationale for the CSA exception—that parties to a CSA should be able to ‘‘fully engage as various options are presented during the auction process’’—is inapplicable with respect to the back-up CSA. Once the relinquishment bid of the prospective host of the CSA is provisionally accepted by the auction system in a given stage of the auction, the CSA exception may be utilized for otherwise prohibited communications involving the parties to the back-up agreement, and can no longer be utilized for parties to the primary agreement in that stage. 5. The Commission notes that under the reverse auction bidding procedures, the bidding status of a ‘‘frozen— provisional winner’’ may change to ‘‘bidding in the current round’’ if the auction enters a subsequent stage. Accordingly, if the host in the primary CSA, which was no longer operative because its bidding status became ‘‘frozen—provisional winner’’ in the E:\FR\FM\02NOR1.SGM 02NOR1 asabaliauskas on DSK5VPTVN1PROD with RULES Federal Register / Vol. 80, No. 211 / Monday, November 2, 2015 / Rules and Regulations previous stage, is designated as ‘‘bidding in the current round’’ in a subsequent stage of the auction, and that CSA expressly provides that it becomes the operative sharing agreement under such circumstances, the host may notify the sharee in the primary CSA of that change in status and the CSA exception will again apply to communications between the parties to the primary agreement rather than with the back-up host. 6. The Commission also finds that the attractiveness of the channel sharing option would be enhanced if sharees were given additional time to plan and execute their transition to the host’s facilities. Currently, the rules require that all winning go off-air bidders in the reverse auction, including winning channel sharees, must terminate operations on their pre-auction channels within three months of when they receive auction proceeds. While three months for termination of operations is sufficient for go off-air winners who intend to relinquish their licenses and cease broadcasting altogether, the Commission recognizes that winning bidders that plan to share a channel will remain in operation and may therefore need more time to implement the move to the sharer’s facility. For instance, a channel sharee may need time to deal with technical issues associated with transitioning to its shared location. If it is changing its community of license, it may also need to negotiate modifications to carriage agreements or finalize new must-carry arrangements with multichannel video programming distributors. 7. For these reasons, the Commission modifies section 73.3700(b)(4)(ii) of the rules to extend the amount of time a sharee in a pre- or post-auction CSA will have to relinquish its pre-auction channel to six months after receipt of its reverse auction proceeds. As the Commission decided in the Incentive Auction R&O, winning channel sharing bidders may request a waiver of up to an additional three months to cease operations on their pre-auction channel, pursuant to section 1.3 of the rules, and the Commission will view these requests most favorably. Further, winning channel sharing bidders may request an additional three-months, and the Commission will view the additional requests favorably as well so long as it determines that grant of the extension will not delay the postauction transition. The Commission finds that this extension of the transition period to six months, and the availability of waivers of up to an additional six months, is unlikely to VerDate Sep<11>2014 17:39 Oct 30, 2015 Jkt 238001 adversely affect the Commission’s postauction transition timeline. Initial Regulatory Flexibility Act Analysis The Regulatory Flexibility Act of 1980, as amended (RFA), requires that a regulatory flexibility analysis be prepared for notice-and-comment rule making proceedings, unless the agency certifies that ‘‘the rule will not, if promulgated, have a significant economic impact on a substantial number of small entities.’’ The RFA generally defines the term ‘‘small entity’’ as having the same meaning as the terms ‘‘small business,’’ ‘‘small organization,’’ and ‘‘small governmental jurisdiction.’’ 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 U.S. Small Business Administration (SBA). In 2012, Congress mandated that the Commission conduct an incentive auction of broadcast television spectrum as set forth in the Middle Class Tax Relief and Job Creation Act of 2012 (‘‘Spectrum Act’’). The incentive auction will have three major pieces: (1) A ‘‘reverse auction’’ in which full power and Class A broadcast television licensees submit bids to voluntarily relinquish certain broadcast rights in exchange for payments; (2) a reorganization or ‘‘repacking’’ of the broadcast television bands in order to free up a portion of the ultra-high frequency (‘‘UHF’’) band for other uses; and (3) a ‘‘forward auction’’ of licenses for flexible use of the newly available spectrum. In the Incentive Auction R&O, the Commission adopted rules to implement the broadcast television spectrum incentive auction. Among other things, the Commission adopted rules for broadcast stations that choose to channel share. Pursuant to the RFA, a Final Regulatory Flexibility Analysis (‘‘FRFA’’) was incorporated into the Incentive Auction R&O. This Second Order on Reconsideration reflects clarifications and modifications to the Commission’s rules arising in response to comments filed by Fox, ION, Tribune, and Univision (the ‘‘Broadcaster Representatives’’). The Commission generally responds favorably to the Broadcaster Representatives’ requests, finding that providing these clarifications will increase broadcasters’ flexibility to use the channel sharing bid option and will make the option more PO 00000 Frm 00085 Fmt 4700 Sfmt 4700 67345 attractive. Specifically, this Second Order on Reconsideration clarifies the Commission’s rules to permit broadcasters to enter into back-up channel sharing agreements (‘‘CSAs’’) with an additional partner to mitigate the risk that stations that intend to channel share could be left without spectrum after the auction, if both partners receive a status of ‘‘frozenprovisionally winning’’ in the same round of the reverse auction. The Commission also clarified that the CSA exception to the general prohibition on communications regarding bids and bidding strategy will apply to that backup CSA, so long as the back-up CSA was filed before the application deadline, is the requirement for all CSAs. This Second Order on Reconsideration also permits back-up agreements based on price or other contingencies, but declines to extend the CSA exception to them as introducing unacceptable risk of becoming a vehicle for collusion. Finally, this Second Order on Reconsideration extends the transition period for channel sharing winning bidders from three months to six months, and extends the possibility for additional waivers from three months to six months, barring any delay this would cause other transitioning broadcasters. Neither of these changes adopted in this Second Order on Reconsideration will impose additional costs. The changes provide greater flexibility for both stations that wish to pursue channel sharing agreements pre-auction and those that become channel sharing stations post-auction. Therefore, the Commission certifies that the changes adopted in this Second Order on Reconsideration will not have a significant economic impact on a substantial number of small entities. The Commission will send a copy of the Second Order on Reconsideration, including a copy of this Final Regulatory Flexibility Certification, in a report to Congress pursuant to the Congressional Review Act. In addition, the Second Order on Reconsideration and this certification will be sent to the Chief Counsel for Advocacy of the Small Business Administration, and will be published in the Federal Register. Federal Rules Which Duplicate, Overlap, or Conflict With the Commission’s Proposals None. List of Subjects in 47 CFR Part 73 Television and reporting and recordkeeping requirements. E:\FR\FM\02NOR1.SGM 02NOR1 67346 Federal Register / Vol. 80, No. 211 / Monday, November 2, 2015 / Rules and Regulations Federal Communications Commission. Marlene H. Dortch, Secretary. DEPARTMENT OF COMMERCE National Oceanic and Atmospheric Administration Final Rules For the reasons discussed in the preamble, the Federal Communications Commission amends 47 CFR part 73 as follows: 50 CFR Part 679 [Docket No. 140918791–4999–02] RIN 0648–XE293 PART 73—RADIO BROADCAST SERVICES 1. The authority citation for part 73 continues to read as follows: Fisheries of the Exclusive Economic Zone Off Alaska; Inseason Adjustment to the 2015 Gulf of Alaska Pollock Seasonal Apportionments AGENCY: ■ Authority: 47 U.S.C. 154, 303, 334, 336 and 339. 2. Section 73.3700 is amended by revising paragraphs (b)(3) and (b)(4)(ii) to read as follows: ■ § 73.3700 Post-incentive auction licensing and operation. * * * * ** (b) * * * (3) License applications for channel sharing stations. The licensee of each channel sharee station and channel sharer station must file an application for a license for the shared channel using FCC Form 2100 Schedule B (for a full power station) or F (for a Class A station) within six months of the date that the channel sharee station licensee receives its incentive payment pursuant to section 6403(a)(1) of the Spectrum Act. (4) * * * (ii) The licensee of a channel sharee station and a licensee of a license relinquishment station that has indicated in its Form 177 an intent to enter into a post-auction channel sharing agreement must comply with the notification and cancellation procedures in § 73.1750 and terminate operations on its pre-auction channel within six months of the date that the licensee receives its incentive payment pursuant to section 6403(a)(1) of the Spectrum Act. * * * * * [FR Doc. 2015–27632 Filed 10–30–15; 8:45 am] asabaliauskas on DSK5VPTVN1PROD with RULES BILLING CODE 6712–01–P VerDate Sep<11>2014 17:39 Oct 30, 2015 Jkt 238001 National Marine Fisheries Service (NMFS), National Oceanic and Atmospheric Administration (NOAA), Commerce. ACTION: Temporary rule; inseason adjustment SUMMARY: NMFS is adjusting the 2015 seasonal apportionments of the total allowable catch (TAC) for pollock in the Gulf of Alaska (GOA) by re-apportioning unharvested pollock TAC in Statistical Areas 610, 620, and 630 of the GOA. This action is necessary to provide opportunity for harvest of the 2015 pollock TAC, consistent with the goals and objectives of the Fishery Management Plan for Groundfish of the Gulf of Alaska. DATES: Effective 1200 hours, Alaska local time (A.l.t.), October 28, 2015, until 2400 hours A.l.t., December 31, 2015. FOR FURTHER INFORMATION CONTACT: Josh Keaton, 907–586–7228. NMFS manages the groundfish fishery in the GOA exclusive economic zone according to the Fishery Management Plan for Groundfish of the Gulf of Alaska (FMP) prepared by the North Pacific Fishery Management Council (Council) under authority of the Magnuson-Stevens Fishery Conservation and Management Act. Regulations governing fishing by U.S. vessels in accordance with the FMP appear at subpart H of 50 CFR part 600 and 50 CFR part 679. The annual pollock TACs in Statistical Areas 610, 620, and 630 of the GOA are apportioned among four seasons, in accordance with § 679.23(d)(2). Regulations at § 679.20(a)(5)(iv)(B) allow the underharvest of a seasonal apportionment to be added to subsequent seasonal apportionments, provided that any revised seasonal apportionment does not exceed 20 percent of the seasonal apportionment for a given statistical area. Therefore, NMFS is increasing the D season SUPPLEMENTARY INFORMATION: PO 00000 Frm 00086 Fmt 4700 Sfmt 4700 apportionment of pollock in Statistical Areas 610, 620, and 630 of the GOA to reflect the underharvest of pollock in those areas during the C season. In addition, any underharvest remaining beyond 20 percent of the originally specified seasonal apportionment in a particular area may be further apportioned to other statistical areas. Therefore, NMFS also is increasing the D season apportionment of pollock to Statistical Areas 610 and 630 based on the underharvest of pollock in Statistical Areas 620 of the GOA. These adjustments are described below. The D seasonal apportionment of the 2015 pollock TAC in Statistical Area 610 of the GOA is 12,185 metric tons (mt) as established by the final 2015 and 2016 harvest specifications for groundfish of the GOA (80 FR 10250, February 25, 2015). In accordance with § 679.20(a)(5)(iv)(B), the Administrator, Alaska Region, NMFS (Regional Administrator), hereby increases the D season apportionment for Statistical Area 610 by 2,437 mt to account for the underharvest of the TAC in Statistical Areas 610 and 620 in the C season. This increase is in proportion to the estimated pollock biomass and is not greater than 20 percent of the D seasonal apportionment of the TAC in Statistical Area 610. Therefore, the revised D seasonal apportionment of the pollock TAC in Statistical Area 610 is 14,622 mt (12,185 mt plus 2,437 mt). The D seasonal apportionment of the pollock TAC in Statistical Area 620 of the GOA is 14,628 mt as established by the final 2015 and 2016 harvest specifications for groundfish of the GOA (80 FR 10250, February 25, 2015). In accordance with § 679.20(a)(5)(iv)(B), the Regional Administrator hereby increases the D seasonal apportionment for Statistical Area 620 by 2,926 mt to account for the underharvest of the TAC in Statistical Areas 620 in the C season. This increase is not greater than 20 percent of the D seasonal apportionment of the TAC in Statistical Area 620. Therefore, the revised D seasonal apportionment of the pollock TAC in Statistical Area 620 is 17,554 mt (14,628 mt plus 2,926 mt). The D seasonal apportionment of pollock TAC in Statistical Area 630 of the GOA is 18,639 mt as established by the final 2015 and 2016 harvest specifications for groundfish of the GOA (80 FR 10250, February 25, 2015). In accordance with § 679.20(a)(5)(iv)(B), the Regional Administrator hereby increases the D seasonal apportionment for Statistical Area 630 by 3,728 mt to account for the underharvest of the TAC in Statistical Areas 620 and 630 in the C season. This increase is in proportion E:\FR\FM\02NOR1.SGM 02NOR1

Agencies

[Federal Register Volume 80, Number 211 (Monday, November 2, 2015)]
[Rules and Regulations]
[Pages 67344-67346]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-27632]


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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Part 73

[GN Docket No. 12-268 and MB Docket No. 15-137; FCC 15-139]


Channel Sharing by Full Power and Class A Stations Outside the 
Broadcast Television Spectrum Incentive Auction Context

AGENCY: Federal Communications Commission.

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: In this Second Order on Reconsideration, the Federal 
Communications Commission (Commission) provides more flexibility to 
broadcasters interested in the channel sharing option in the broadcast 
incentive auction by clarifying that back-up channel sharing agreements 
(``CSAs'') are permitted under its rules and providing more time for 
successful bidders to transition to shared facilities after the 
auction. The Commission also provides guidance regarding how the CSA 
exception to the prohibited communications rule applies with respect to 
back-up CSAs.

DATES: Effective December 2, 2015.

FOR FURTHER INFORMATION CONTACT: Shaun Maher, Shaun.Maher@fcc.gov of 
the Media Bureau, Video Division, (202) 418-2324.

SUPPLEMENTARY INFORMATION: This is a summary of the Commission's Second 
Order on Reconsideration, FCC 15-139, adopted October 21, 2015, in MB 
Docket No. 15-137. The full text of the Second Order on Reconsideration 
is available for inspection and copying during regular business hours 
in the FCC Reference Center, 445 12th Street SW., Room CY-A257, Portals 
II, Washington, DC 20554. This document is available in alternative 
formats (computer diskette, large print, audio record, and Braille). 
Persons with disabilities who need documents in these formats may 
contact the FCC by email: FCC504@fcc.gov or phone: 202-418-0530 or TTY: 
202-418-0432.
    Paperwork Reduction Act of 1995 Analysis: This Second Order on 
Reconsideration does not contain any additional new or modified 
information collection requirements subject to the Paperwork Reduction 
Act of 1995 (``PRA''), Public Law 104-13, beyond those that were 
already in the Commission's Incentive Auction Report and Order, 79 FR 
48442-01 (Aug. 15, 2014) (``Incentive Auction R&O''). In addition, 
therefore, it does not contain any additional new or modified 
information collection burden for small business concerns with fewer 
than 25 employees, pursuant to the Small Business Paperwork Relief Act 
of 2002, Public Law 107-198, beyond those that were already in the 
Incentive Auction R&O.
    The Commission is seeking separate OMB approval for FCC Form 2100, 
Schedule B (for a full power station) and F (for a Class A station) and 
FCC Form 177.

Synopsis

    1. The Commission adopted rules for the broadcast incentive auction 
in the Incentive Auction R&O including rules for parties interested in 
entering into CSAs. The Commission recently modified those channel 
sharing rules to provide greater flexibility to stations considering 
that option. In this Second Order on Reconsideration, the Commission 
announces that the availability of back-up channel sharing arrangements 
would provide additional flexibility for stations considering channel 
sharing. In particular, it would enable both parties to a CSA to 
participate in the auction while mitigating the risk that the auction 
system could freeze both stations in the same round and thus deprive 
both stations of a post-auction host or ``sharer'' station. For some, 
the risk of being left without any spectrum on which to share may be 
too great and foreclose that kind of participation. The Commission 
concludes that a back-up CSA could mitigate that risk and encourage 
greater participation.
    2. The Commission clarifies that, if both parties to a CSA 
participate in the auction, the rules allow either or both parties to 
also enter into a back-up CSA with one other station in the same DMA to 
act as the back-up host or sharer station. By allowing the parties to 
secure a fallback arrangement in the event that both parties relinquish 
their spectrum usage rights in the auction, this clarification will 
help promote wider participation in the auction by broadcasters that 
require assurance that they will remain on the air in the DMA. The 
Commission reminds parties that all of their auction-related activity 
and communications, including with respect to back-up CSAs, must adhere 
to the antitrust laws as well as the rules.
    3. In the Second Order on Reconsideration, the Commission rejects 
the Broadcaster Representatives' request to allow ``contingent multi-
party CSAs across multiple markets.'' The Commission concludes that 
multi-market back-up CSAs are not necessary to address the uncertainty 
created if multiple parties to a particular CSA participate in the 
auction. Such a result would undermine the general goal of the rules 
prohibiting certain communications, which are intended to reinforce 
existing antitrust laws, facilitate the detection of collusive conduct, 
and assure incentive auction participants that the auction process will 
be fair and objective. The Commission restated that it crafted the CSA 
exception to apply on an agreement-by-agreement basis in order to 
encourage channel sharing relationships without undermining these 
objectives.
    4. The Commission also clarifies that, consistent with the 
foregoing, the CSA exception to the reverse auction rule prohibiting 
certain communications applies only to communications between parties 
to a single CSA at any given time. Further, the CSA exception only 
applies to a CSA, including back-up CSAs, if the CSA was entered into 
and filed with the Commission by the application deadline. If both 
stations pursuant to the primary CSA have a bidding status of 
``frozen--provisional winner,'' i.e., the auction system determines 
that the station can never be assigned a feasible channel in its pre-
auction band in the current stage, then parties to a back-up CSA may 
communicate regarding bids and bidding strategy and must cease 
communication of this type with the party to the original CSA. Prior to 
that point, the rationale for the CSA exception--that parties to a CSA 
should be able to ``fully engage as various options are presented 
during the auction process''--is inapplicable with respect to the back-
up CSA. Once the relinquishment bid of the prospective host of the CSA 
is provisionally accepted by the auction system in a given stage of the 
auction, the CSA exception may be utilized for otherwise prohibited 
communications involving the parties to the back-up agreement, and can 
no longer be utilized for parties to the primary agreement in that 
stage.
    5. The Commission notes that under the reverse auction bidding 
procedures, the bidding status of a ``frozen--provisional winner'' may 
change to ``bidding in the current round'' if the auction enters a 
subsequent stage. Accordingly, if the host in the primary CSA, which 
was no longer operative because its bidding status became ``frozen--
provisional winner'' in the

[[Page 67345]]

previous stage, is designated as ``bidding in the current round'' in a 
subsequent stage of the auction, and that CSA expressly provides that 
it becomes the operative sharing agreement under such circumstances, 
the host may notify the sharee in the primary CSA of that change in 
status and the CSA exception will again apply to communications between 
the parties to the primary agreement rather than with the back-up host.
    6. The Commission also finds that the attractiveness of the channel 
sharing option would be enhanced if sharees were given additional time 
to plan and execute their transition to the host's facilities. 
Currently, the rules require that all winning go off-air bidders in the 
reverse auction, including winning channel sharees, must terminate 
operations on their pre-auction channels within three months of when 
they receive auction proceeds. While three months for termination of 
operations is sufficient for go off-air winners who intend to 
relinquish their licenses and cease broadcasting altogether, the 
Commission recognizes that winning bidders that plan to share a channel 
will remain in operation and may therefore need more time to implement 
the move to the sharer's facility. For instance, a channel sharee may 
need time to deal with technical issues associated with transitioning 
to its shared location. If it is changing its community of license, it 
may also need to negotiate modifications to carriage agreements or 
finalize new must-carry arrangements with multichannel video 
programming distributors.
    7. For these reasons, the Commission modifies section 
73.3700(b)(4)(ii) of the rules to extend the amount of time a sharee in 
a pre- or post-auction CSA will have to relinquish its pre-auction 
channel to six months after receipt of its reverse auction proceeds. As 
the Commission decided in the Incentive Auction R&O, winning channel 
sharing bidders may request a waiver of up to an additional three 
months to cease operations on their pre-auction channel, pursuant to 
section 1.3 of the rules, and the Commission will view these requests 
most favorably. Further, winning channel sharing bidders may request an 
additional three-months, and the Commission will view the additional 
requests favorably as well so long as it determines that grant of the 
extension will not delay the post-auction transition. The Commission 
finds that this extension of the transition period to six months, and 
the availability of waivers of up to an additional six months, is 
unlikely to adversely affect the Commission's post-auction transition 
timeline.

Initial Regulatory Flexibility Act Analysis

    The Regulatory Flexibility Act of 1980, as amended (RFA), requires 
that a regulatory flexibility analysis be prepared for notice-and-
comment rule making proceedings, unless the agency certifies that ``the 
rule will not, if promulgated, have a significant economic impact on a 
substantial number of small entities.'' The RFA generally defines the 
term ``small entity'' as having the same meaning as the terms ``small 
business,'' ``small organization,'' and ``small governmental 
jurisdiction.'' 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 U.S. Small 
Business Administration (SBA).
    In 2012, Congress mandated that the Commission conduct an incentive 
auction of broadcast television spectrum as set forth in the Middle 
Class Tax Relief and Job Creation Act of 2012 (``Spectrum Act''). The 
incentive auction will have three major pieces: (1) A ``reverse 
auction'' in which full power and Class A broadcast television 
licensees submit bids to voluntarily relinquish certain broadcast 
rights in exchange for payments; (2) a reorganization or ``repacking'' 
of the broadcast television bands in order to free up a portion of the 
ultra-high frequency (``UHF'') band for other uses; and (3) a ``forward 
auction'' of licenses for flexible use of the newly available spectrum. 
In the Incentive Auction R&O, the Commission adopted rules to implement 
the broadcast television spectrum incentive auction. Among other 
things, the Commission adopted rules for broadcast stations that choose 
to channel share. Pursuant to the RFA, a Final Regulatory Flexibility 
Analysis (``FRFA'') was incorporated into the Incentive Auction R&O.
    This Second Order on Reconsideration reflects clarifications and 
modifications to the Commission's rules arising in response to comments 
filed by Fox, ION, Tribune, and Univision (the ``Broadcaster 
Representatives''). The Commission generally responds favorably to the 
Broadcaster Representatives' requests, finding that providing these 
clarifications will increase broadcasters' flexibility to use the 
channel sharing bid option and will make the option more attractive. 
Specifically, this Second Order on Reconsideration clarifies the 
Commission's rules to permit broadcasters to enter into back-up channel 
sharing agreements (``CSAs'') with an additional partner to mitigate 
the risk that stations that intend to channel share could be left 
without spectrum after the auction, if both partners receive a status 
of ``frozen-provisionally winning'' in the same round of the reverse 
auction. The Commission also clarified that the CSA exception to the 
general prohibition on communications regarding bids and bidding 
strategy will apply to that back-up CSA, so long as the back-up CSA was 
filed before the application deadline, is the requirement for all CSAs. 
This Second Order on Reconsideration also permits back-up agreements 
based on price or other contingencies, but declines to extend the CSA 
exception to them as introducing unacceptable risk of becoming a 
vehicle for collusion. Finally, this Second Order on Reconsideration 
extends the transition period for channel sharing winning bidders from 
three months to six months, and extends the possibility for additional 
waivers from three months to six months, barring any delay this would 
cause other transitioning broadcasters.
    Neither of these changes adopted in this Second Order on 
Reconsideration will impose additional costs. The changes provide 
greater flexibility for both stations that wish to pursue channel 
sharing agreements pre-auction and those that become channel sharing 
stations post-auction. Therefore, the Commission certifies that the 
changes adopted in this Second Order on Reconsideration will not have a 
significant economic impact on a substantial number of small entities.
    The Commission will send a copy of the Second Order on 
Reconsideration, including a copy of this Final Regulatory Flexibility 
Certification, in a report to Congress pursuant to the Congressional 
Review Act. In addition, the Second Order on Reconsideration and this 
certification will be sent to the Chief Counsel for Advocacy of the 
Small Business Administration, and will be published in the Federal 
Register.
Federal Rules Which Duplicate, Overlap, or Conflict With the 
Commission's Proposals
    None.

List of Subjects in 47 CFR Part 73

    Television and reporting and recordkeeping requirements.


[[Page 67346]]


Federal Communications Commission.
Marlene H. Dortch,
Secretary.

Final Rules

    For the reasons discussed in the preamble, the Federal 
Communications Commission amends 47 CFR part 73 as follows:

PART 73--RADIO BROADCAST SERVICES

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1. The authority citation for part 73 continues to read as follows:

    Authority:  47 U.S.C. 154, 303, 334, 336 and 339.

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2. Section 73.3700 is amended by revising paragraphs (b)(3) and 
(b)(4)(ii) to read as follows:


Sec.  73.3700  Post-incentive auction licensing and operation.

* * * * **
    (b) * * *
    (3) License applications for channel sharing stations. The licensee 
of each channel sharee station and channel sharer station must file an 
application for a license for the shared channel using FCC Form 2100 
Schedule B (for a full power station) or F (for a Class A station) 
within six months of the date that the channel sharee station licensee 
receives its incentive payment pursuant to section 6403(a)(1) of the 
Spectrum Act.
    (4) * * *
    (ii) The licensee of a channel sharee station and a licensee of a 
license relinquishment station that has indicated in its Form 177 an 
intent to enter into a post-auction channel sharing agreement must 
comply with the notification and cancellation procedures in Sec.  
73.1750 and terminate operations on its pre-auction channel within six 
months of the date that the licensee receives its incentive payment 
pursuant to section 6403(a)(1) of the Spectrum Act.
* * * * *
[FR Doc. 2015-27632 Filed 10-30-15; 8:45 am]
 BILLING CODE 6712-01-P
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