Emergency Alert System; Wireless Emergency Alerts, 39610-39621 [2018-17096]
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39610
Federal Register / Vol. 83, No. 155 / Friday, August 10, 2018 / Rules and Regulations
Populations’’ (59 FR 7629, February 16,
1994).
Since tolerances and exemptions that
are established on the basis of a petition
under FFDCA section 408(d), such as
the tolerances in this final rule, do not
require the issuance of a proposed rule,
the requirements of the Regulatory
Flexibility Act (RFA) (5 U.S.C. 601 et
seq.), do not apply.
This action directly regulates growers,
food processors, food handlers, and food
retailers, not States or tribes, nor does
this action alter the relationships or
distribution of power and
responsibilities established by Congress
in the preemption provisions of FFDCA
section 408(n)(4). As such, the Agency
has determined that this action will not
have a substantial direct effect on States
or tribal governments, on the
relationship between the national
government and the States or tribal
governments, or on the distribution of
power and responsibilities among the
various levels of government or between
the Federal Government and Indian
tribes. Thus, the Agency has determined
that Executive Order 13132, entitled
‘‘Federalism’’ (64 FR 43255, August 10,
1999) and Executive Order 13175,
entitled ‘‘Consultation and Coordination
with Indian Tribal Governments’’ (65 FR
67249, November 9, 2000) do not apply
to this action. In addition, this action
does not impose any enforceable duty or
contain any unfunded mandate as
described under Title II of the Unfunded
Mandates Reform Act (UMRA) (2 U.S.C.
1501 et seq.).
This action does not involve any
technical standards that would require
Agency consideration of voluntary
consensus standards pursuant to section
12(d) of the National Technology
Transfer and Advancement Act
(NTTAA) (15 U.S.C. 272 note).
VII. Congressional Review Act
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Pursuant to the Congressional Review
Act (5 U.S.C. 801 et seq.), EPA will
submit a report containing this rule and
other required information to the U.S.
Senate, the U.S. House of
Representatives, and the Comptroller
General of the United States prior to
publication of the rule in the Federal
Register. This action is not a ‘‘major
rule’’ as defined by 5 U.S.C. 804(2).
List of Subjects in 40 CFR Part 180
Environmental protection,
Administrative practice and procedure,
Agricultural commodities, Pesticides
and pests, Reporting and recordkeeping
requirements.
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16:07 Aug 09, 2018
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Dated: July 25, 2018.
Michael Goodis,
Director, Registration Division, Office of
Pesticide Programs.
Parts per
million
Commodity
Lettuce, head ..............................
*
*
*
*
Nut, tree, group 14–12 ...............
Onion, bulb, subgroup 3–07A ....
Onion, green, subgroup 3–07B ..
Orchardgrass, forage ..................
Orchardgrass, hay ......................
Therefore, 40 CFR chapter I is
amended as follows:
PART 180—[AMENDED]
1. The authority citation for part 180
continues to read as follows:
■
Authority: 21 U.S.C. 321(q), 346a and 371.
2. In § 180.669, add alphabetically the
following commodities: Alfalfa, forage;
Alfalfa, hay; Alfalfa, seed; Almond,
hulls; Beet, sugar, dried pulp; Bluegrass,
forage; Bluegrass, hay; Bromegrass,
forage; Bromegrass, hay; Cotton, gin
byproducts; Cottonseed subgroup 20C;
Fescue, forage; Fescue, hay; Leaf petiole
vegetable subgroup 22B; Lettuce, head;
Nut, tree, group 14–12; Onion, bulb,
subgroup 3–07A; Onion, green,
subgroup 3–07B; Orchardgrass, forage;
Orchardgrass, hay; Pea and bean,
succulent shelled, subgroup 6B; Peanut;
Peanut, hay; Potato, wet peel; Ryegrass,
forage; Ryegrass, hay; Sunflower
subgroup 20B; Switchgrass, forage;
Switchgrass, hay; Vegetable, brassica,
head and stem, group 5–16; Vegetable,
cucurbit, group 9; Vegetable, fruiting,
group 8–10; Vegetable, leafy, group 4–
16, except lettuce, head; Vegetable,
leaves of root and tuber, group 2;
Vegetable, legume, edible podded,
subgroup 6A; Vegetable, root, subgroup
1A; and Vegetable, tuberous and corm,
subgroup 1C to the table in paragraph
(a) to read as follows:
■
4.0
*
0.08
0.50
10
30
60
*
*
*
*
Pea and bean, succulent
shelled, subgroup 6B ..............
Peanut ........................................
Peanut, hay ................................
Potato, wet peel ..........................
*
*
*
*
*
Ryegrass, forage ........................
Ryegrass, hay .............................
*
*
*
*
*
Sunflower subgroup 20B ............
Switchgrass, forage ....................
Switchgrass, hay ........................
*
*
*
*
*
Vegetable, brassica, head and
stem, group 5–16 ....................
Vegetable, cucurbit, group 9 ......
*
*
*
*
*
Vegetable, fruiting, group 8–10 ..
Vegetable, leafy, group 4–16,
except lettuce, head ................
Vegetable, leaves of root and
tuber, group 2 .........................
Vegetable, legume, edible podded, subgroup 6A ...................
Vegetable, root, subgroup 1A ....
Vegetable, tuberous and corm,
subgroup 1C ...........................
*
§ 180.669 Picoxystrobin; tolerances for
residues.
*
(a) * * *
0.90
0.05
30
0.10
*
*
*
*
*
*
30
60
2.0
30
60
2.0
0.30
*
0.70
30
30
2.0
0.50
0.03
*
*
[FR Doc. 2018–17192 Filed 8–9–18; 8:45 am]
Parts per
million
Commodity
Alfalfa, forage .............................
Alfalfa, hay ..................................
Alfalfa, seed ................................
Almond, hulls ..............................
4.0
5.0
9.0
7.0
*
*
*
*
Beet, sugar, dried pulp ...............
Bluegrass, forage .......................
Bluegrass, hay ............................
Bromegrass, forage ....................
Bromegrass, hay ........................
*
*
*
*
*
Cotton, gin byproducts ...............
Cottonseed subgroup 20C .........
*
*
*
*
*
Fescue, forage ............................
Fescue, hay ................................
*
1.5
30
60
30
60
BILLING CODE 6560–50–P
FEDERAL COMMUNICATIONS
COMMISSION
47 CFR Part 11
[PS Docket Nos. 15–94, 15–91; FCC 18–
94]
Emergency Alert System; Wireless
Emergency Alerts
Federal Communications
Commission.
20 ACTION: Final rule.
AGENCY:
*
*
*
*
Leaf petiole vegetable subgroup
22B ..........................................
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2.0
In this document, the Federal
Communications Commission (FCC or
30
60 Commission) adopts changes to its rules
governing the Emergency Alert System
(EAS) to facilitate ‘‘Live Code Tests’’ of
*
the EAS; permit use of the EAS
20 Attention Signal and EAS Header Code
SUMMARY:
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tones in Public Service Announcements;
implement certain alert authentication
and validation procedures; and require
reporting of false alerts.
DATES: Effective September 10, 2018,
except for the amendments to 47 CFR
11.33 and 11.56, which are effective
August 12, 2019, and the amendments
to 47 CFR 11.45(b) and 11.61, which
contain modifications to information
collection requirements that were
previously approved by the Office of
Management and Budget (OMB). Once
OMB has approved the modifications to
these collections, the Commission will
publish a document in the Federal
Register announcing the effective date.
FOR FURTHER INFORMATION CONTACT:
Gregory Cooke, Deputy Chief, Policy
and Licensing Division, Public Safety
and Homeland Security Bureau, at (202)
418–7452, or by email at
Gregory.Cooke@fcc.gov. For additional
information concerning the information
collection requirements contained in
this document, send an email to PRA@
fcc.gov or contact Nicole Ongele, Office
of Managing Director, Performance
Evaluation and Records Management,
202–418–2991, or by email to PRA@
fcc.gov.
SUPPLEMENTARY INFORMATION: This is a
summary of the Commission’s Report
and Order (Order) in PS Docket Nos.
15–94 and 15–91, FCC 18–94, adopted
on July 12, 2018, and released on July
13, 2018. The full text of this document
is available for inspection and copying
during normal business hours in the
FCC Reference Center (Room CY–A257),
445 12th Street SW, Washington, DC
20554. The full text may also be
downloaded at: www.fcc.gov.
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Synopsis
1. In the Order, the Commission
adopts changes to its Part 11 EAS rules
to improve the effectiveness and public
utility of the EAS by facilitating more
effective public safety tests and
exercises using the EAS, implementing
measures to help prevent distribution of
false alerts over the EAS, and requiring
reporting of false alerts.
I. Background
2. The EAS is a national public
warning system through which EAS
Participants deliver alerts to the public
to warn them of impending
emergencies. The primary purpose of
the EAS is to provide the President of
the United States (President) with ‘‘the
capability to provide immediate
communications and information to the
general public at the National, State and
Local Area levels during periods of
national emergency.’’ State and local
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authorities also use this common
distribution architecture of the EAS to
distribute voluntary weather-related and
other emergency alerts. Further, testing
of the system at the state and local level
increases the proficiency of local
emergency personnel, provides insight
into the system’s functionality and
effectiveness at the federal level, and
enhances the public’s ability to respond
to EAS alerts when they occur. The
integrity of the EAS is maintained
through the Commission’s EAS rules,
which set forth the parameters and
frequency with which EAS Participants
must test the system, prohibit the
unauthorized use of the EAS Attention
Signal and codes, and require EAS
Participants to keep their EAS
equipment in good working order.
II. Discussion
A. Building Effective Alerting Exercise
Programs
1. Live Code Testing
3. Section 11.31(e) of the
Commission’s rules sets forth the event
header codes that are used for alerts in
specific emergency situations (e.g., TOR
for tornado), as well as the specific test
codes to be used for national periodic
tests (NPT), required monthly tests
(RMT), and required weekly tests
(RWT). Section 11.45 of the EAS rules
states that ‘‘[n]o person may transmit or
cause to transmit the EAS codes or
Attention Signal, or a recording or
simulation thereof, in any circumstance
other than in an actual National, State
or Local Area emergency or authorized
test of the EAS.’’ EAS Participants
regularly have sought waivers of these
rules to use the event codes used for
actual alerts (i.e., ‘‘live’’ event header
codes) and the EAS Attention Signal to
conduct local EAS public awareness
and proficiency training exercises. In
the Notice of Proposed Rulemaking
(NPRM) in PS Docket Nos. 15–94 and
15–91, 81 FR 15792 (March 24, 2016),
the Commission proposed amending the
rules to allow EAS Participants to
conduct tests that use live EAS header
codes and the EAS Attention Signal
under specific circumstances without
submitting a waiver request. The
Commission also proposed amending
section 11.45 to exempt state-designed
EAS live code exercises from the
prohibition against false or misleading
use of the EAS Attention Signal.
4. The Order amends section 11.45 to
exempt EAS live code exercises from
the prohibition against false or
misleading use of the EAS Attention
Signal. The Order also amends section
11.61 to include ‘‘Live Code Tests’’ as a
separate category of alerting exercise
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that EAS Participants may undertake
voluntarily, provided such live code
tests are conducted in accordance with
specific parameters. Specifically, EAS
Participants may participate in live code
tests where the entity conducting the
test: (1) Notifies the public before the
test that live event codes will be used,
but that no emergency is, in fact,
occurring; (2) to the extent technically
feasible, states in the test message that
the event is only a test; (3) coordinates
the test among EAS Participants and
with state and local emergency
authorities, the relevant State
Emergency Communication Committee
(SECC) (or SECCs, if the test could affect
multiple states), and first responder
organizations, such as Public Safety
Answering Points (PSAPs), police, and
fire agencies; and (4) consistent with the
Commission’s rules, provides in widely
accessible formats the required
notification to the public that the test is
not, in fact, a warning about an actual
emergency. The Order requires that live
code tests state in the alert message that
the event is only a test as a further
safeguard against public confusion,
especially among those who are blind,
deaf and hearing impaired.
5. The Commission agrees with
commenters that EAS Participants such
as cable operators and broadcasters
must be given sufficient notice of live
code tests to benefit from them and to
allow for planning and coordination to
assess and mitigate the impact on
downstream equipment and subscribers.
Accordingly, the Commission expects
test alert originators to coordinate with
these stakeholders in good faith, and
encourages them to provide the notice
and coordination required by the rules
adopted in the Order no later than two
weeks prior to the test. As part of that
coordination and outreach, the
Commission encourages test alert
originators to file notice of their intent
to conduct a test in the EAS docket (PS
Docket No. 15–94).
6. Commenters generally support
voluntary live code testing, and agree
that such testing can yield important
public safety benefits. The record also
indicates that live code testing exercises
can be tailored to improve public safety
at the local or community level.
7. To avoid customer exhaustion and
any dissipation of the value of alerting
that could come from over-testing the
system to the public, the Order limits
the number of live code tests that an
alert originator may conduct under the
new rules it adopts to two (2) within
any calendar year. The Commission will
continue to monitor the implementation
of live code tests to determine whether
additional measures are warranted.
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2. EAS Public Service Announcements
(PSAs)
8. Section 11.46 of the Commission’s
rules provides that PSAs, while
permissible, ‘‘may not be a part of alerts
or tests, and may not simulate or
attempt to copy alert tones or codes.’’
The Commission has granted requests
from non-governmental organizations
(NGOs) and FEMA for waivers of these
rules to raise public awareness about the
EAS through PSAs that use the EAS
Attention Signal, and, in one instance,
a simulation of header code sounds. In
2016, the Commission amended its rules
to allow authorized entities to use the
Attention Signal in PSAs about WEA. In
the NPRM, the Commission proposed
allowing EAS Participants to use EAS
header codes and the Attention Signal
in coordination with federal, state, and
local government entities without a
waiver, provided that the PSAs are
presented in a non-misleading manner
that does not cause technical issues for
downstream equipment.
9. The Order amends section 11.46 of
the Commission’s rules to allow, under
certain circumstances, EAS Participants
to use the Attention Signal in EAS PSAs
(including commercially-sponsored
announcements, infomercials, or
programs) provided by federal, state,
and local government entities, and
NGOs, to raise public awareness about
emergency alerting. This usage is only
permitted if the PSA is presented in a
non-misleading and technically
harmless manner, including with the
explicit statement that the Attention
Signal is being used in the context of a
PSA for the purpose of educating the
viewing or listening public about
emergency alerting. The Order also
makes conforming changes to section
11.45.
10. The Commission declines to allow
live EAS header codes to be used in
EAS PSAs because, as suggested by
some commenters, EAS PSAs
containing live EAS header codes could
have unintended consequences,
including triggering false alerts.
However, the Commission will permit
the simulation of header code audio
tones developed by FEMA in PSAs to
deliver the familiar sounds of live EAS
header codes that the public associates
with the EAS in a manner that would
not trigger an actual alert. Entities that
want to simulate the EAS header codes
in their PSAs must do so using FEMA’s
simulation. The Commission observes
that FEMA’s simulation of the header
code audio tones is subject to the
restrictions of section 11.45 and
therefore should not be used for
purposes other than the EAS PSAs
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described in the Order. In adopting
these PSA rules, the Commission notes
agreement with commenters that EAS
PSAs can be effective tools to raise
public awareness of the EAS,
particularly those that may be new to
this country or have limited English
proficiency, who do not recognize EAS
tones and could benefit from learning
about the EAS’s benefits.
3. Effective Dates
11. The Commission proposed that
these rules would become effective 30
days from the date of their publication
in the Federal Register. No commenters
opposed this time frame. Accordingly,
the rule amendments for sections
11.45(a) and 11.46, both of which relate
to PSAs, will become effective 30 days
after publication of the Order in the
Federal Register.
12. The rule amendments for section
11.61, which cover ‘‘Live Code Tests,’’
will become effective on the date
specified in a Commission notice
published in the Federal Register
announcing their approval under the
Paperwork Reduction Act by the Office
of Management and Budget, which date
will be at least 30 days after the date
that this Order and rules adopted herein
are published in the Federal Register.
B. Ensuring EAS Readiness and
Reliability
1. False Alert Reporting
13. The Commission agrees with
commenters that false alert reporting
would benefit ongoing EAS reliability,
and that having timely information
about false alerts could help identify
and mitigate problems with the EAS.
Accordingly, the Commission revises its
rules to require that no later than
twenty-four (24) hours of an EAS
Participant’s discovery that it has
transmitted or otherwise sent a false
alert to the public, the EAS Participant
send an email to the FCC Ops Center (at
FCCOPS@fcc.gov), informing the
Commission of the event and of any
details that the EAS Participant may
have concerning the event. If an EAS
Participant has no actual knowledge
that it has issued a false alert, then it
would not be required to take any
action.
2. Alert Authentication
14. The Order revises section 11.56(c)
to require that EAS Participants
configure their systems to reject all
CAP-formatted EAS messages that
contain an invalid digital signature, thus
helping to prevent the transmission of a
false alert. All commenters addressing
this issue supported the Commission’s
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proposal and generally acknowledged
the benefits of digitally signing CAP
alerts. Although the Order requires EAS
Participants to configure their systems
in such a way as to reject alerts with
invalid digital signatures, the
Commission does not mandate the use
of digital signatures at this time. With
respect to broadcast-based, legacy alerts,
the Commission believes it would be
premature to adopt rules pertaining to
specific authentication mechanisms for
such alerts at this time. Based on the
lack of consensus on an approach
forward in the record, the Commission
believes it would be prudent to await
the recommendation from the
Communications Security, Reliability
and Interoperability Council VI on this
issue rather than moving ahead with
one of the originally proposed
mechanisms.
3. Alert Validation
15. Section 11.33(a)(10) specifies
certain error detection and validation
requirements for decoders. Currently,
the Commission’s rules do not require
validation of alerts based upon the time
period or year parameter in the ‘‘time
stamp’’ portion of the header code, i.e.,
the portion that determines the correct
date and time for the alert. Further, the
Commission’s rules do not require that
valid alerts have an expiration time in
the future. Thus, an alert’s time stamp
does not consistently serve as a filter
through which officials can ensure an
alert is confined to its relevant time
frame.
16. Alert time validation. The alert
message validation requirements in the
EAS rules require that EAS decoders
validate alert messages by comparing
the three EAS header tone bursts that
commence all EAS alerts to ensure that
at least two out of three match—the
content of those header tones is not
reviewed for incoming alert message
validity. The Order amends section
11.33(a)(10) so that alert message
validation confirms that the alert’s
expiration time is set to take place in the
future, and that its origination time
takes place no more than 15 minutes in
the future.
17. The Commission observes that
commenters generally support proposals
that reduce the potential for repeat
broadcasts of outdated alerts by
validation based on specific origination
and expiration times, and support a 15minute timeframe, and believe that such
requirement will require minimal
software updates. Based on the record,
most EAS equipment already validates
the time of EAS messages, blocking
alerts that have expired. Remaining
equipment can achieve this capability
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by installing the necessary software as
part of a regularly scheduled in-version
equipment software update.
18. Year Parameter. The Commission
declines to require a year parameter in
the time stamp section of the EAS
Protocol. The record indicates that
adding a year parameter requirement is
not technically feasible without
significant modification to the current
EAS Protocol, as well as all associated
equipment, which would be extremely
expensive and burdensome, and would
cause significant disruption to the
NOAA Weather Radio infrastructure.
4. Compliance Timeline
19. The Order adopts a one-year
compliance timeframe from publication
in the Federal Register. The record
indicates that most EAS Participants
already have EAS equipment capable of
complying with these requirements. The
Commission also observes that a oneyear time frame would allow equipment
manufacturers to develop and make
available software updates to implement
these requirements in deployed
equipment that do not already meet
these requirements.
20. The rule amendments for section
11.45(b), which address the filing of
false alert reports will become effective
on the date specified in a Commission
notice published in the Federal Register
announcing their approval under the
Paperwork Reduction Act by the Office
of Management and Budget, which date
will be at least 30 days after the date
that this Order and rules adopted herein
are published in the Federal Register.
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C. Benefit-Cost Analysis
21. The rule changes adopted in the
Order reduce burdens by eliminating
waiver filing time and costs. To the
extent the Commission adopts new
requirements, it does so in a minimally
burdensome way that either imposes no
additional costs or imposes only
minimal costs. Other than the alert
validation and authentication
requirements, for which a one-year
compliance timeframe is provided, only
the new false alert reporting rule will
involve new costs to EAS Participants.
As discussed below, the Commission
concludes that the benefits of these rule
changes exceed their costs.
1. Benefits
22. The rule changes adopted in the
Order will reduce regulatory burden on
EAS stakeholders. Waivers will no
longer be needed for live code testing.
The rule changes also reduce the
regulatory burden on EAS Participants
by allowing them to produce PSAs
using EAS header codes and a simulated
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Attention Signal without requesting a
waiver. This change will make the
process of producing a PSA less costly,
and promote greater proficiency in the
use of EAS, both by EAS alert initiators
and EAS Participants.
23. These rule changes will also help
prevent incidents of misuse and abuse
of the EAS. The authentication and
validation rule changes will require the
use of EAS equipment’s existing
capabilities to help prevent misuse and
abuse of the EAS, thus protecting its
integrity and maintaining its credibility
with the public and alerting officials. To
provide an estimate of the value of the
benefits of the rules adopted in the
Order, the Commission turns to the
overall value of the EAS. Scholars agree
that public safety in the United States
has improved over the years because its
early warning systems for recurring
hazards, such as lightning, floods,
storms and heat waves, are continually
improving. By reducing the frequency of
false alerts, the rule changes adopted in
the Order strengthen public confidence
in the EAS, thus avoiding erosion in its
overall value.
alerts will be $11,600 per year, based
upon an average of 290 EAS participants
each spending 15 minutes to file one
report.
27. Therefore, based on the foregoing
analysis, the Commission finds it
reasonable to conclude that the benefits
of the rules adopted in the Order will
exceed the costs of their
implementation. The rule changes will
support greater testing and awareness of
the EAS and promote the security of the
EAS. They will also likely result in
fewer false alerts, and thus fewer
unnecessary 911 calls. The benefits of
these rule changes will continue to
accrue to the public each year, while the
imposed costs are low.
2. Costs
24. The rule changes to section 11.61
for live code testing and to sections
11.45 and 11.46 for public service
announcements do not impose any new
costs. Rather, they codify requirements
that were previously imposed on
waivers granted by the Commission.
Removing the requirement to file a
waiver removes the need for legal and
other staff time associated with filing a
waiver. The new rules therefore
eliminate any legal or administrative
costs that were associated with filing
waiver requests.
25. The Commission estimates that
compliance with the alert
authentication and validation rule
changes will involve only minimal costs
to EAS Participants. Current EAS rules
require that EAS Participants must have
EAS equipment that is capable of being
updated via software. According to the
record, most EAS equipment deployed
in the field is already configured to
support the validation and
authentication rule changes adopted in
the Order. The one-year compliance
period adopted for these rule changes
will provide sufficient time for any
necessary update to be deployed within
a previously scheduled in-version
equipment software update. In
combination, these factors result in no
incremental cost to EAS Participants for
installing the update.
26. With respect to the new false alert
reporting requirement, the Commission
concludes that the cost of reporting false
B. Regulatory Flexibility Analysis
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III. Procedural Matters
A. Accessible Formats
28. 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).
29. As required by the Regulatory
Flexibility Act of 1980, as amended
(RFA), an Initial Regulatory Flexibility
Analysis (IRFA) was incorporated in the
Notice of Proposed Rulemaking (NPRM)
in PS Docket Nos. 15–94 and 15–91, 81
FR 15792 (March 24, 2016). The
Commission sought written public
comment on the proposals in the NPRM,
including comment on the IRFA. No
comments were filed addressing the
IRFA. This present Final Regulatory
Flexibility Analysis (FRFA) conforms to
the RFA.
1. Need for, and Objectives of, the
Report and Order
30. In today’s Report and Order
(Order), the Commission adopts rules
that fall into two categories: (1) Building
stronger alerting exercise programs and
greater awareness of the EAS; and (2)
taking steps to ensure the readiness and
reliability of the EAS to protect it
against accidental misuse and malicious
intrusion.
31. With respect to building effective
public safety exercises and supporting
greater testing and awareness of the
EAS, the Commission permits the use of
‘‘live code’’ EAS public safety exercises
to empower communities to meet their
emergency preparedness needs and to
provide opportunities for system
verification and proficiency training.
The Commission also allows EAS
Participants to use the EAS Attention
Signal and simulation of the header
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codes in Public Service Announcements
(PSAs) provided by federal, state, and
local government entities, as well as
non-governmental organizations (NGOs)
to raise public awareness about
emergency alerting.
32. With respect to taking steps to
ensure the readiness and reliability of
the EAS, the Commission requires EAS
Participants, upon discovery (i.e., actual
knowledge) that they have transmitted
or otherwise sent a false alert to the
public, to provide minimal reports to
the Commission. The Commission also
requires EAS Participants to reject any
CAP-formatted EAS messages that
contain an invalid digital signature, and
require EAS Participants to reject all
EAS alerts that they receive with header
code date/time data inconsistent with
the current date and time.
2. Summary of Significant Issues Raised
by Public Comments in Response to the
IRFA
33. There were no comments filed
that specifically addressed the proposed
rules and policies presented in the
IRFA.
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3. Response To Comments by the Chief
Counsel for Advocacy of the Small
Business Administration
34. Pursuant to the Small Business
Jobs Act of 2010, which amended the
RFA, the Commission is required to
respond to any comments filed by the
Chief Counsel for Advocacy of the Small
Business Administration (SBA), and to
provide a detailed statement of any
change made to the proposed rules as a
result of those comments.
35. The Chief Counsel did not file any
comments in response to the proposed
rules in this proceeding.
4. Description and Estimate of the
Number of Small Entities to Which
Rules Will Apply
36. 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 rules adopted, herein. 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 SBA.
37. Small Businesses, Small
Organizations, and Small Governmental
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Jurisdictions. The Commission’s actions,
over time, may affect small entities that
are not easily categorized at present.
The Commission therefore describes
here, at the outset, three broad groups of
small entities that could be directly
affected herein. First, while there are
industry specific size standards for
small businesses that are used in the
regulatory flexibility analysis, according
to data from the SBA’s Office of
Advocacy, in general a small business is
an independent business having fewer
than 500 employees. These types of
small businesses represent 99.9% of all
businesses in the United States which
translates to 28.8 million businesses.
38. Next, the type of small entity
described as a ‘‘small organization’’ is
generally ‘‘any not-for-profit enterprise
which is independently owned and
operated and is not dominant in its
field.’’ Nationwide, as of Aug. 2016,
there were approximately 356,494 small
organizations based on registration and
tax data filed by nonprofits with the
Internal Revenue Service (IRS).
39. Finally, the small entity described
as a ‘‘small governmental jurisdiction’’
is defined generally as ‘‘governments of
cities, counties, towns, townships,
villages, school districts, or special
districts, with a population of less than
fifty thousand.’’ U.S. Census Bureau
data from the 2012 Census of
Governments indicates that there were
90,056 local governmental jurisdictions
consisting of general purpose
governments and special purpose
governments in the United States. Of
this number there were 37,132 General
purpose governments (county,
municipal and town or township) with
populations of less than 50,000 and
12,184 Special purpose governments
(independent school districts and
special districts) with populations of
less than 50,000. The 2012 U.S. Census
Bureau data for most types of
governments in the local government
category shows that the majority of
these governments have populations of
less than 50,000. Based on this data the
Commission estimates that at least
49,316 local government jurisdictions
fall in the category of ‘‘small
governmental jurisdictions.’’
40. Radio Stations. This Economic
Census category ‘‘comprises
establishments primarily engaged in
broadcasting aural programs by radio to
the public. Programming may originate
in their own studio, from an affiliated
network, or from external sources.’’ The
SBA has established a small business
size standard for this category as firms
having $38.5 million or less in annual
receipts. Economic Census data for 2012
shows that 2,849 radio station firms
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operated during that year. Of that
number, 2,806 operated with annual
receipts of less than $25 million per
year, 17 with annual receipts between
$25 million and $49,999,999 million
and 26 with annual receipts of $50
million or more. Therefore, based on the
SBA’s size standard the majority of such
entities are small entities.
41. According to Commission staff
review of the BIA/Kelsey, LLC’s Media
Access Pro Radio Database as of January
2018, about 11,261 (or about 99.9
percent) of 11,383 commercial radio
stations had revenues of $38.5 million
or less and thus qualify as small entities
under the SBA definition. The
Commission has estimated the number
of licensed commercial AM radio
stations to be 4,639 stations and the
number of commercial FM radio
stations to be 6,744, for a total number
of 11,383. The Commission notes that
the Commission has also estimated the
number of licensed NCE radio stations
to be 4,120. Nevertheless, the
Commission does not compile and
otherwise does not have access to
information on the revenue of NCE
stations that would permit it to
determine how many such stations
would qualify as small entities.
42. The Commission also notes, that
in assessing whether a business entity
qualifies as small under the above
definition, business control affiliations
must be included. The Commission’s
estimate therefore likely overstates the
number of small entities that might be
affected by its action, because the
revenue figure on which it is based does
not include or aggregate revenues from
affiliated companies. In addition, to be
determined a ‘‘small business,’’ an
entity may not be dominant in its field
of operation. The Commission further
notes, that it is difficult at times to
assess these criteria in the context of
media entities, and the estimate of small
businesses to which these rules may
apply does not exclude any radio station
from the definition of a small business
on this basis, thus the Commission’s
estimate of small businesses may
therefore be over-inclusive. Also, as
noted above, 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 estimates of small businesses to
which they apply may be over-inclusive
to this extent.
43. Low-Power FM Stations. Low
Power FM Stations are classified in the
category of Radio Stations and are
assigned the same NAICs Code as
licensees of radio stations. This U.S.
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industry, Radio Stations, comprises
establishments primarily engaged in
broadcasting aural programs by radio to
the public. Programming may originate
in their own studio, from an affiliated
network, or from external sources. The
SBA has established a small business
size standard which consists of all radio
stations whose annual receipts are $38.5
million dollars or less. U.S. Census data
for 2012 indicates that 2,849 radio
station firms operated during that year.
Of that number, 2,806 operated with
annual receipts of less than $25 million
per year, 17 with annual receipts
between $25 million and $49,999,999
million and 26 with annual receipts of
$50 million or more. Based on U.S.
Census data, the Commission concludes
that the majority of Low Power FM
Stations are small.
44. Television Broadcasting. This
Economic Census category ‘‘comprises
establishments primarily engaged in
broadcasting images together with
sound.’’ These establishments operate
television broadcast studios and
facilities for the programming and
transmission of programs to the public.
These establishments also produce or
transmit visual programming to
affiliated broadcast television stations,
which in turn broadcast the programs to
the public on a predetermined schedule.
Programming may originate in their own
studio, from an affiliated network, or
from external sources. The SBA has
created the following small business
size standard for such businesses: Those
having $38.5 million or less in annual
receipts. The 2012 Economic Census
reports that 751 firms in this category
operated in that year. Of that number,
656 had annual receipts of $25,000,000
or less, 25 had annual receipts between
$25,000,000 and $49,999,999 and 70
had annual receipts of $50,000,000 or
more. Based on this data the
Commission therefore estimates that the
majority of commercial television
broadcasters are small entities under the
applicable SBA size standard.
45. The Commission has estimated
the number of licensed commercial
television stations to be 1,378. Of this
total, 1,258 stations (or about 91
percent) had revenues of $38.5 million
or less, according to Commission staff
review of the BIA Kelsey Inc. Media
Access Pro Television Database (BIA) on
November 16, 2017, and therefore these
licensees qualify as small entities under
the SBA definition. In addition, the
Commission has estimated the number
of licensed noncommercial educational
(NCE) television stations to be 395.
Notwithstanding, the Commission does
not compile and otherwise does not
have access to information on the
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revenue of NCE stations that would
permit it to determine how many such
stations would qualify as small entities.
There are also 2,367 low power
television stations, including Class A
stations (LPTV) and 3,750 TV translator
stations. Given the nature of these
services, the Commission will presume
that all of these entities qualify as small
entities under the above SBA small
business size standard.
46. The Commission notes, however,
that in assessing whether a business
concern qualifies as ‘‘small’’ under the
above definition, business (control)
affiliations must be included. The
Commission’s estimate, therefore likely
overstates the number of small entities
that might be affected by the
Commission’s action, because the
revenue figure on which it is based does
not include or aggregate revenues from
affiliated companies. In addition,
another element of the definition of
‘‘small business’’ requires that an entity
not be dominant in its field of operation.
The Commission is unable at this time
to define or quantify the criteria that
would establish whether a specific
television broadcast station is dominant
in its field of operation. Accordingly,
the estimate of small businesses to
which rules may apply does not exclude
any television station from the
definition of a small business on this
basis and is therefore possibly overinclusive. Also, as noted above, 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 its
estimates of small businesses to which
they apply may be over-inclusive to this
extent.
47. Wired Telecommunications
Carriers. The U.S. Census Bureau
defines this industry as ‘‘establishments
primarily engaged in operating and/or
providing access to transmission
facilities and infrastructure that they
own and/or lease for the transmission of
voice, data, text, sound, and video using
wired communications networks.
Transmission facilities may be based on
a single technology or a combination of
technologies. Establishments in this
industry use the wired
telecommunications network facilities
that they operate to provide a variety of
services, such as wired telephony
services, including VoIP services, wired
(cable) audio and video programming
distribution, and wired broadband
internet services. By exception,
establishments providing satellite
television distribution services using
facilities and infrastructure that they
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operate are included in this industry.’’
The SBA has developed a small
business size standard for Wired
Telecommunications Carriers, which
consists of all such companies having
1,500 or fewer employees. U.S. Census
Bureau data for 2012 shows that there
were 3,117 firms that operated that year.
Of this total, 3,083 operated with fewer
than 1,000 employees. Thus, under this
size standard, the majority of firms in
this industry can be considered small.
48. Cable and Other Subscription
Programming. This industry comprises
establishments primarily engaged in
operating studios and facilities for the
broadcasting of programs on a
subscription or fee basis. The broadcast
programming is typically narrowcast in
nature (e.g., limited format, such as
news, sports, education, or youthoriented). These establishments produce
programming in their own facilities or
acquire programming from external
sources. The programming material is
usually delivered to a third party, such
as cable systems or direct-to-home
satellite systems, for transmission to
viewers. The SBA size standard for this
industry establishes as small, any
company in this category which has
annual receipts of $38.5 million or less.
According to 2012 U.S. Census Bureau
data, 367 firms operated for that entire
year. Of that number, 319 operated with
annual receipts of less than $25 million
a year and 48 firms operated with
annual receipts of $25 million or more.
Based on this data, the Commission
estimates that the majority of firms
operating in this industry are small.
49. Cable Companies and Systems
(Rate Regulation). The Commission has
developed its own small business size
standards for the purpose of cable rate
regulation. Under the Commission’s
rules, a ‘‘small cable company’’ is one
serving 400,000 or fewer subscribers
nationwide. Industry data indicate that
there are currently 4,600 active cable
systems in the United States. Of this
total, all but nine cable operators
nationwide are small under the 400,000subscriber size standard. In addition,
under the Commission’s rate regulation
rules, a ‘‘small system’’ is a cable system
serving 15,000 or fewer subscribers.
Current Commission records show 4,600
cable systems nationwide. Of this total,
3,900 cable systems have fewer than
15,000 subscribers, and 700 systems
have 15,000 or more subscribers, based
on the same records. Thus, under this
standard as well, the Commission
estimates that most cable systems are
small entities.
50. Cable System Operators (Telecom
Act Standard). The Communications
Act of 1934, as amended, also contains
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a size standard for small cable system
operators, which is ‘‘a cable operator
that, directly or through an affiliate,
serves in the aggregate fewer than one
percent of all subscribers in the United
States and is not affiliated with any
entity or entities whose gross annual
revenues in the aggregate exceed
$250,000,000.’’ There are approximately
52,403,705 cable video subscribers in
the United States today. Accordingly, an
operator serving fewer than 524,037
subscribers shall be deemed a small
operator if its annual revenues, when
combined with the total annual
revenues of all its affiliates, do not
exceed $250 million in the aggregate.
Based on available data, the
Commission finds that all but nine
incumbent cable operators are small
entities under this size standard. The
Commission notes that it neither
requests nor collects information on
whether cable system operators are
affiliated with entities whose gross
annual revenues exceed $250 million.
Although it seems certain that some of
these cable system operators are
affiliated with entities whose gross
annual revenues exceed $250,000,000,
the Commission is unable at this time to
estimate with greater precision the
number of cable system operators that
would qualify as small cable operators
under the definition in the
Communications Act.
51. Satellite Telecommunications.
This category comprises firms
‘‘primarily engaged in providing
telecommunications services to other
establishments in the
telecommunications and broadcasting
industries by forwarding and receiving
communications signals via a system of
satellites or reselling satellite
telecommunications.’’ Satellite
telecommunications service providers
include satellite and earth station
operators. The category has a small
business size standard of $32.5 million
or less in average annual receipts under
SBA rules. For this category, U.S.
Census Bureau data for 2012 shows that
there were a total of 333 firms that
operated for the entire year. Of this
total, 299 firms had annual receipts of
less than $25 million. Consequently, the
Commission estimates that the majority
of satellite telecommunications
providers are small entities.
52. All Other Telecommunications.
The ‘‘All Other Telecommunications’’
category is comprised of establishments
primarily engaged in providing
specialized telecommunications
services, such as satellite tracking,
communications telemetry, and radar
station operation. This industry also
includes establishments primarily
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engaged in providing satellite terminal
stations and associated facilities
connected with one or more terrestrial
systems and capable of transmitting
telecommunications to, and receiving
telecommunications from, satellite
systems. Establishments providing
internet services or voice over internet
protocol (VoIP) services via clientsupplied telecommunications
connections are also included in this
industry. The SBA has developed a
small business size standard for All
Other Telecommunications, which
consists of all such firms with annual
receipts of $32.5 million or less. For this
category, U.S. Census Bureau data for
2012 shows that there were 1,442 firms
that operated for the entire year. Of
those firms, a total of 1,400 had annual
receipts less than $25 million and 42
firms had annual receipts of $25 million
to $49,999,999. Thus, the Commission
estimates that the majority of ‘‘All Other
Telecommunications’’ firms potentially
affected by the Commission’s action can
be considered small.
53. The Educational Broadcasting
Services. Cable-based Educational
Broadcasting Services have been
included in the broad economic census
category and Small Business
Administration (SBA) size standard for
Wired Telecommunications Carriers
since 2007. Wired Telecommunications
Carriers, which was developed for small
wireline businesses is defined as
follows: ‘‘This industry comprises
establishments primarily engaged in
operating and/or providing access to
transmission facilities and infrastructure
that they own and/or lease for the
transmission of voice, data, text, sound,
and video using wired
telecommunications networks.
Transmission facilities may be based on
a single technology or a combination of
technologies. Establishments in this
industry use the wired
telecommunications network facilities
that they operate to provide a variety of
services, such as wired telephony
services, including VoIP services; wired
(cable) audio and video programming
distribution; and wired broadband
internet services.’’ The SBA has
developed a small business size
standard for this category, which is all
such businesses having 1,500 or fewer
employees. U.S. Census data for 2012
shows that there were 3,117 firms that
operated that year. Of this total, 3,083
operated with fewer than 1,000
employees. Thus, under this size
standard, the majority of firms in this
industry can be considered small. In
addition to Census Bureau data, the
Commission’s internal records indicate
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that, as of October 2014, there were
2,206 active EBS licenses. The
Commission estimates that of these
2,206 licenses, the majority are held by
non-profit educational institutions and
school districts, which are defined by
statute as small businesses.
54. Direct Broadcast Satellite (DBS)
Service. DBS Service is a nationally
distributed subscription service that
delivers video and audio programming
via satellite to a small parabolic ‘‘dish’’
antenna at the subscriber’s location.
DBS is included in the SBA’s economic
census category ‘‘Wired
Telecommunications Carriers.’’ The
Wired Telecommunications Carriers
industry comprises establishments
primarily engaged in operating and/or
providing access to transmission
facilities and infrastructure that they
own and/or lease for the transmission of
voice, data, text, sound, and video using
wired telecommunications networks.
Transmission facilities may be based on
a single technology or combination of
technologies. Establishments in this
industry use the wired
telecommunications network facilities
that they operate to provide a variety of
services, such as wired telephone
services, including VoIP services, wired
(cable) audio, and video programming
distribution, and wired broadband
internet services. By exception,
establishments providing satellite
television distribution services using
facilities and infrastructure that they
operate are included in this industry.
The SBA determines that a wireline
business is small if it has fewer than
1,500 employees. U.S. Census Bureau
data for 2012 indicates that 3,117
wireline companies were operational
during that year. Of that number, 3,083
operated with fewer than 1,000
employees. Based on that data, the
Commission concludes that the majority
of wireline firms are small under the
applicable standard. However,
currently, only two entities provide DBS
service, which requires a great deal of
capital for operation: DIRECTV (owned
by AT&T) and DISH Network. DIRECTV
and DISH Network each report annual
revenues that are in excess of the
threshold for a small business.
Accordingly, the Commission must
conclude that internally developed FCC
data are persuasive, that, in general,
DBS service is provided only by large
firms.
55. Wireless Telecommunications
Carriers (Except Satellite). This industry
comprises establishments engaged in
operating and maintaining switching
and transmission facilities to provide
communications via the airwaves.
Establishments in this industry have
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spectrum licenses and provide services
using that spectrum, such as cellular
services, paging services, wireless
internet access, and wireless video
services. The appropriate size standard
under SBA rules is that such a business
is small if it has 1,500 or fewer
employees. For this industry, U.S.
Census data for 2012 shows that there
were 967 firms that operated for the
entire year. Of this total, 955 firms had
fewer than 1,000 employees. Thus,
under this category and the associated
size standard, the Commission estimates
that the majority of wireless
telecommunications carriers (except
satellite) are small entities.
56. The Commission’s own data—
available in its Universal Licensing
System—indicate that, as of October 25,
2016, there are 280 Cellular licensees
that will be affected by the
Commission’s actions today. The
Commission does not know how many
of these licensees are small, as the
Commission does not collect that
information for these types of entities.
Similarly, according to internally
developed Commission data, 413
carriers reported that they were engaged
in the provision of wireless telephony,
including cellular service, Personal
Communications Service (PCS), and
Specialized Mobile Radio (SMR)
services. Of this total, an estimated 261
have 1,500 or fewer employees and 152
have more than 1,500 employees. Thus,
using available data, the Commission
estimates that the majority of wireless
firms can be considered small.
57. Broadband Personal
Communications Service. The
broadband personal communications
service (PCS) spectrum is divided into
six frequency blocks designated A
through F, and the Commission has held
auctions for each block. The
Commission initially defined a ‘‘small
business’’ for C- and F-Block licenses as
an entity that has average gross revenues
of $40 million or less in the three
previous calendar years. For F-Block
licenses, an additional small business
size standard for ‘‘very small business’’
was added and is defined as an entity
that, together with its affiliates, has
average gross revenues of not more than
$15 million for the preceding three
calendar years. These standards
defining ‘‘small entity’’, in the context
of broadband PCS auctions, have been
approved by the SBA. No small
businesses within the SBA-approved
small business size standards bid
successfully for licenses in Blocks A
and B. There were 90 winning bidders
that claimed small business status in the
first two C-Block auctions. A total of 93
bidders that claimed small business
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status won approximately 40 percent of
the 1,479 licenses in the first auction for
the D-, E-, and F-Blocks. On April 15,
1999, the Commission completed the
reauction of 347 C-, D-, E-, and F-Block
licenses in Auction No. 22. Of the 57
winning bidders in that auction, 48
claimed small business status and won
277 licenses.
58. On January 26, 2001, the
Commission completed the auction of
422 C- and F-Block Broadband PCS
licenses in Auction No. 35. Of the 35
winning bidders in that auction, 29
claimed small business status.
Subsequent events concerning Auction
No. 35, including judicial and agency
determinations, resulted in a total of 163
C- and F-Block licenses being available
for grant. On February 15, 2005, the
Commission completed an auction of
242 C-, D-, E-, and F-Block licenses in
Auction No. 58. Of the 24 winning
bidders in that auction, 16 claimed
small business status and won 156
licenses. On May 21, 2007, the
Commission completed an auction of 33
licenses in the A-, C-, and F-Blocks in
Auction No. 71. Of the 12 winning
bidders in that auction, five claimed
small business status and won 18
licenses. On August 20, 2008, the
Commission completed the auction of
20 C-, D-, E-, and F-Block Broadband
PCS licenses in Auction No. 78. Of the
eight winning bidders for Broadband
PCS licenses in that auction, six claimed
small business status and won 14
licenses.
59. Narrowband Personal
Communications Services. Two
auctions of narrowband personal
communications services (PCS) licenses
have been conducted. To ensure
meaningful participation of small
business entities in future auctions, the
Commission has adopted a two-tiered
small business size standard in the
Narrowband PCS Second Report and
Order. Through these auctions, the
Commission has awarded a total of 41
licenses, 11 of which were obtained by
small businesses. A ‘‘small business’’ is
an entity that, together with affiliates
and controlling interests, has average
gross revenues for the three preceding
years of not more than $40 million. A
‘‘very small business’’ is an entity that,
together with affiliates and controlling
interests, has average gross revenues for
the three preceding years of not more
than $15 million. The SBA has
approved these small business size
standards.
60. 700 MHz Guard Band Licensees.
In 2000, in the 700 MHz Guard Band
Order, the Commission adopted size
standards for ‘‘small businesses’’ and
‘‘very small businesses’’ for purposes of
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determining their eligibility for special
provisions such as bidding credits and
installment payments. A small business
in this service is an entity that, together
with its affiliates and controlling
principals, has average gross revenues
not exceeding $40 million for the
preceding three years. Additionally, a
very small business is an entity that,
together with its affiliates and
controlling principals, has average gross
revenues that are not more than $15
million for the preceding three years.
SBA approval of these definitions is not
required. An auction of 52 Major
Economic Area (‘‘MEA’’) licenses
commenced on September 6, 2000, and
closed on September 21, 2000. Of the
104 licenses auctioned, 96 licenses were
sold to nine bidders. Five of these
bidders were small businesses that won
a total of 26 licenses. A second auction
of 700 MHz Guard Band licenses
commenced on February 13, 2001, and
closed on February 21, 2001. All eight
of the licenses auctioned were sold to
three bidders. One of these bidders was
a small business that won a total of two
licenses.
61. Lower 700 MHz Band Licenses.
The Commission previously adopted
criteria for defining three groups of
small businesses for purposes of
determining their eligibility for special
provisions such as bidding credits. The
Commission defined a ‘‘small business’’
as an entity that, together with its
affiliates and controlling principals, has
average gross revenues not exceeding
$40 million for the preceding three
years. A ‘‘very small business’’ is
defined as an entity that, together with
its affiliates and controlling principals,
has average gross revenues that are not
more than $15 million for the preceding
three years. Additionally, the lower 700
MHz Service had a third category of
small business status for Metropolitan/
Rural Service Area (MSA/RSA)
licenses—‘‘entrepreneur’’—which is
defined as an entity that, together with
its affiliates and controlling principals,
has average gross revenues that are not
more than $3 million for the preceding
three years. The SBA approved these
small size standards. An auction of 740
licenses (one license in each of the 734
MSAs/RSAs and one license in each of
the six Economic Area Groupings
(EAGs)) commenced on August 27,
2002, and closed on September 18,
2002. Of the 740 licenses available for
auction, 484 licenses were won by 102
winning bidders. Seventy-two of the
winning bidders claimed small
business, very small business or
entrepreneur status and won a total of
329 licenses. A second auction
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commenced on May 28, 2003, closed on
June 13, 2003, and included 256
licenses: 5 EAG licenses and 476
Cellular Market Area licenses.
Seventeen winning bidders claimed
small or very small business status and
won 60 licenses, and nine winning
bidders claimed entrepreneur status and
won 154 licenses. On July 26, 2005, the
Commission completed an auction of
five licenses in the Lower 700 MHz
band (Auction No. 60). There were three
winning bidders for five licenses. All
three winning bidders claimed small
business status.
62. In 2007, the Commission
reexamined its rules governing the 700
MHz band in the 700 MHz Second
Report and Order. An auction of 700
MHz licenses commenced January 24,
2008, and closed on March 18, 2008,
which included: 176 Economic Area
licenses in the A-Block, 734 Cellular
Market Area licenses in the B-Block,
and 176 EA licenses in the E-Block.
Twenty winning bidders, claiming small
business status (those with attributable
average annual gross revenues that
exceed $15 million and do not exceed
$40 million for the preceding three
years) won 49 licenses. Thirty-three
winning bidders claiming very small
business status (those with attributable
average annual gross revenues that do
not exceed $15 million for the preceding
three years) won 325 licenses.
63. Upper 700 MHz Band Licenses. In
the 700 MHz Second Report and Order,
the Commission revised its rules
regarding Upper 700 MHz licenses. On
January 24, 2008, the Commission
commenced Auction No. 73, in which
several licenses in the Upper 700 MHz
band were available for licensing: 12
Regional Economic Area Grouping
licenses in the C-Block, and one
nationwide license in the D-Block. The
auction concluded on March 18, 2008,
with three winning bidders claiming
very small business status (those with
attributable average annual gross
revenues that do not exceed $15 million
for the preceding three years) and
winning five licenses.
64. Advanced Wireless Services. AWS
Services (1710–1755 MHz and 2110–
2155 MHz bands (AWS–1); 1915–1920
MHz, 1995–2000 MHz, 2020–2025 MHz
and 2175–2180 MHz bands (AWS–2);
2155–2175 MHz band (AWS–3)). For the
AWS–1 bands, the Commission has
defined a ‘‘small business’’ as an entity
with average annual gross revenues for
the preceding three years not exceeding
$40 million, and a ‘‘very small
business’’ as an entity with average
annual gross revenues for the preceding
three years not exceeding $15 million.
For AWS–2 and AWS–3, although the
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Commission does not know for certain
which entities are likely to apply for
these frequencies, the Commission notes
that the AWS–1 bands are comparable
to those used for cellular service and
personal communications service. The
Commission has not yet adopted size
standards for the AWS–2 or AWS–3
bands, but proposes to treat both AWS–
2 and AWS–3 similarly to broadband
PCS service and AWS–1 service due to
the comparable capital requirements
and other factors, such as issues
involved in relocating incumbents and
developing markets, technologies, and
services.
65. Broadband Radio Service and
Educational Broadband Service.
Broadband Radio Service systems,
previously referred to as Multipoint
Distribution Service (MDS) and
Multichannel Multipoint Distribution
Service (MMDS) systems, and ‘‘wireless
cable,’’ transmit video programming to
subscribers and provide two-way highspeed data operations using the
microwave frequencies of the
Broadband Radio Service (BRS) and
Educational Broadband Service (EBS)
(previously referred to as the
Instructional Television Fixed Service
(ITFS)).
66. BRS—In connection with the 1996
BRS auction, the Commission
established a small business size
standard as an entity that had annual
average gross revenues of no more than
$40 million in the previous three
calendar years. The BRS auctions
resulted in 67 successful bidders
obtaining licensing opportunities for
493 Basic Trading Areas (BTAs). Of the
67 auction winners, 61 met the
definition of a small business. BRS also
includes licensees of stations authorized
prior to the auction. At this time, the
Commission estimates that of the 61
small business BRS auction winners, 48
remain small business licensees. In
addition to the 48 small businesses that
hold BTA authorizations, there are
approximately 392 incumbent BRS
licensees that are considered small
entities. After adding the number of
small business auction licensees to the
number of incumbent licensees not
already counted, the Commission finds
that there are currently approximately
440 BRS licensees that are defined as
small businesses under either the SBA
or the Commission’s rules.
67. In 2009, the Commission
conducted Auction No. 86, the sale of
78 licenses in the BRS areas. The
Commission offered three levels of
bidding credits: (i) A bidder with
attributed average annual gross revenues
that exceed $15 million and do not
exceed $40 million for the preceding
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three years (small business) received a
15 percent discount on its winning bid;
(ii) a bidder with attributed average
annual gross revenues that exceed $3
million and do not exceed $15 million
for the preceding three years (very small
business) received a 25 percent discount
on its winning bid; and (iii) a bidder
with attributed average annual gross
revenues that do not exceed $3 million
for the preceding three years
(entrepreneur) received a 35 percent
discount on its winning bid. Auction
No. 86 concluded in 2009 with the sale
of 61 licenses. Of the ten winning
bidders, two bidders that claimed small
business status won four licenses; one
bidder that claimed very small business
status won three licenses; and two
bidders that claimed entrepreneur status
won six licenses.
68. EBS—Educational Broadband
Service has been included within the
broad economic census category and the
SBA size standard for Wired
Telecommunications Carriers since
2007. Wired Telecommunications
Carriers are comprised of establishments
primarily engaged in operating and/or
providing access to transmission
facilities and infrastructure that they
own and/or lease for the transmission of
voice, data, text, sound, and video using
wired telecommunications networks.
Transmission facilities may be based on
a single technology or a combination of
technologies. The SBA’s small business
size standard for this category is all such
firms having 1,500 or fewer employees.
U.S. Census data for 2012 shows that
there were 3,117 firms that operated that
year. Of this total, 3,083 operated with
fewer than 1,000 employees. Thus,
under this size standard, the majority of
firms in this industry can be considered
small. In addition to Census Bureau
data, the Commission’s Universal
Licensing System indicates that as of
October 2014, there are 2,206 active EBS
licenses. The Commission estimates that
of these 2,206 licenses, the majority are
held by non-profit educational
institutions and school districts, which
are by statute defined as small
businesses.
69. Wireless Communications Service.
This service can be used for fixed,
mobile, radiolocation, and digital audio
broadcasting satellite uses. The
Commission defined ‘‘small business’’
for the wireless communications
services (WCS) auction as an entity with
average gross revenues of $40 million
for each of the three preceding years,
and a ‘‘very small business’’ as an entity
with average gross revenues of $15
million for each of the three preceding
years. The SBA has approved these
small business size standards. In the
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Commission’s auction for geographic
area licenses in the WCS service there
were seven winning bidders that
qualified as ‘‘very small business’’
entities, and one that qualified as a
‘‘small business’’ entity.
70. Radio and Television
Broadcasting and Wireless
Communications Equipment
Manufacturing. This industry comprises
establishments primarily engaged in
manufacturing radio and television
broadcast and wireless communications
equipment. Examples of products made
by these establishments are:
Transmitting and receiving antennas,
cable television equipment, GPS
equipment, pagers, cellular phones,
mobile communications equipment, and
radio and television studio and
broadcasting equipment. The SBA has
established a small business size
standard for this industry of 1,250
employees or less. U.S. Census data for
2012 shows that 841 establishments
operated in this industry in that year. Of
that number, 819 establishments
operated with less than 500 employees.
Based on this data, the Commission
concludes that a majority of
manufacturers in this industry are
small.
71. Software Publishers. This industry
comprises establishments primarily
engaged in computer software
publishing or publishing and
reproduction. Establishments in this
industry carry out operations necessary
for producing and distributing computer
software, such as designing, providing
documentation, assisting in installation,
and providing support services to
software purchasers. These
establishments may design, develop,
and publish, or publish only. The SBA
has established a size standard for this
industry of annual receipts of $38.5
million per year. U.S. Census data for
2012 indicates that 5,079 firms operated
in that year. Of that number, 4,697 firms
had annual receipts of $25 million or
less. Based on that data, the
Commission concludes that a majority
of firms in this industry are small.
72. NCE and Public Broadcast
Stations. Non-commercial educational
and public broadcast television stations
fall within the U.S. Census Bureau’s
definition for Television Broadcasting.
This industry comprises establishments
primarily engaged in broadcasting
images together with sound and
operating television broadcasting
studios and facilities for the
programming and transmission of
programs to the public. The SBA has
created a small business size standard
for Television Broadcasting entities,
which is such firms having $38.5
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million or less in annual receipts. The
2012 Economic Census reports that 751
firms in this category operated in that
year. Of that number, 656 had annual
receipts of $25,000,000 or less, 25 had
annual receipts between $25,000,000
and $49,999,999 and 70 had annual
receipts of $50,000,000 or more. Based
on this data the Commission concludes
that the majority of NCEs and Public
Broadcast Stations are small entities
under the applicable SBA size standard.
73. According to Commission staff
review of the BIA Kelsey Inc. Media
Access Pro Television Database (BIA) as
of November 16, 2017, approximately
1,258 of the 1,378 licensed commercial
television stations (or about 91 percent)
had revenues of $38.5 million or less,
and therefore these licensees qualify as
small entities under the SBA definition.
The Commission also estimates that
there are 395 licensed noncommercial
educational NCE television stations.
Notwithstanding, the Commission does
not compile and otherwise does not
have access to information on the
revenue of NCE stations that would
permit it to determine how many such
stations would qualify as small entities.
In addition to licensed commercial
television stations and NCEs, there are
also an estimated 2,367 low power
television stations (LPTV), including
Class A stations and 3,750 TV translator
stations. Given the nature of these
services, the Commission will presume
that all of these entities qualify as small
entities under the above SBA small
business size standard.
74. The Commission notes, however,
that in assessing whether a business
concern qualifies as small under the
above definition, business (control)
affiliations must be included. The
Commission’s estimate, therefore, likely
overstates the number of small entities
that might be affected by the
Commission’s action, because the
revenue figure on which it is based does
not include or aggregate revenues from
affiliated companies. Moreover, the
definition of ‘‘small business’’ also
requires that an entity not be dominant
in its field of operation and that the
entity be independently owned and
operated. The estimate of small
businesses to which rules may apply
does not exclude any television station
from the definition of a small business
on these bases and is therefore overinclusive to that extent. Further, the
Commission is unable at this time to
define or quantify the criteria that
would establish whether a specific
television station is dominant in its field
of operation. The Commission further
notes that it is difficult at times to assess
these criteria in the context of media
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39619
entities, and therefore the Commission’s
estimates of small businesses to which
they apply may be over-inclusive to this
extent.
5. Description of Projected Reporting,
Recordkeeping, and Other Compliance
Requirements for Small Entities
75. The Order allows EAS
Participants to take part in live code
EAS public safety exercises, provided
that the entity conducting the test
provides notification during the test to
the extent technically feasible that there
is no actual emergency and provides
notice to the public and coordinates
with EAS Participants, state and local
emergency authorities, the SECC, and
other entities before the test to inform
the public and other affected entities
that live event codes will be used and
that no emergency is occurring. In
addition, the Order allows EAS
Participants to use the EAS Attention
Signal and a harmless simulation of
EAS header codes in PSAs provided by
federal, state, and local government
entities, as well as NGOs. These
measures will obviate recurring costs
associated with the filing of live code
waiver requests (e.g., legal,
administrative, printing, and mailing
costs) and will not create any cost
burdens for EAS Participants. The Order
also requires that no later than twentyfour (24) hours of an EAS Participant’s
discovery (i.e., actual knowledge) that it
has transmitted or otherwise sent a false
alert to the public that the it send an
email to the FCC Ops Center (at
FCCOPS@fcc.gov) informing the
Commission of the event and of any
details that the EAS Participant may
have concerning the event. This
measure will help ensure that all
alerting stakeholder have sufficient
situational awareness of a false alert to
quickly respond to and remediate the
situation.
76. The Order requires EAS
Participants to reject all digitally-signed
CAP-formatted EAS alerts that are
invalidly signed. It further requires EAS
Participants to reject all EAS alerts that
are received with header code date/time
data inconsistent with the current date
and time. Most EAS equipment
deployed in the field already supports
these authentication and validation
rules, but the Commission anticipates
that a small minority of EAS
Participants may need to update
software to comply with these rules.
Such an update should result in
minimal costs to EAS Participants, as it
can be performed during a scheduled inversion equipment software update.
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6. Steps Taken To Minimize the
Significant Economic Impact on Small
Entities, and Significant Alternatives
Considered
77. The RFA requires an agency to
describe any significant alternatives that
it has considered in reaching its
approach, which 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 or reporting requirements
under the rule for small entities; (3) the
use of performance, rather than design,
standards; and (4) and exemption from
coverage of the rule, or any part thereof,
for small entities.’’
78. The Commission does not expect
its actions in the Order to have a
significant economic impact on small
entities. The rule changes to section
11.61 with respect to live code tests do
not impose any new requirements or
new costs for small entities or other EAS
Participants. The steps taken by the
Commission eliminating the waiver
filing requirement will benefit small
entities by reducing the need for legal
and other staff time associated with
filing a waiver, which will translate into
cost reductions and have a positive
economic impact. Thus, as an
alternative to the existing process, the
record supports the Commission’s
conclusion that removing the need for
entities to request a waiver of the
Commission’s rules to conduct live code
tests will reduce costs and remove
regulatory burdens for small entities as
well as other entities subject to these
rules.
79. The false alert reporting rules the
Commission adopts today similarly
impose minimal burdens on small
entities. The reporting requirement is
triggered only upon discovery of the
false alert, allows twenty-four hours for
the submission of the report and
imposes no obligation to and investigate
the false report. Further, the
Commission recognizes that smaller
entities often face particular challenges
in achieving authentication and
validation of EAS messages due to
limited human, financial, or technical
resources. Due, in part, to the
potentially significant burdens that the
originally-proposed requirements would
pose, the Commission declines, at this
time, to adopt certain of the proposals
and defer consideration of others. Those
the Commission adopts are unlikely to
pose burdens that are not already
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incurred in the normal course of
business.
80. Finally, the Commission adopts
implementation timeframes for each of
the Commission’s rules that are
intended to allow EAS Participants to
come into compliance with the
Commission’s rules in a manner that
balances the need for improving EAS
organization and effectiveness as soon
as possible with any potential burdens
that may be imposed by adoption of the
Commission’s proposals.
81. The Commission concludes that
the adopted mandates provide small
entities as well as other EAS
Participants with a sufficient measure of
flexibility to account for technical and
cost-related concerns. The Commission
has determined that implementing these
improvements to the EAS is technically
feasible. In the event that small entities
face unique circumstances that restrict
their ability to comply with the
Commission’s rules, the Commission
can address them through the waiver
process.
C. Paperwork Reduction Act Analysis
82. This document contains modified
information collection requirements
subject to the Paperwork Reduction Act
of 1995 (PRA), Public Law 104–13. It
will be submitted to the Office of
Management and Budget (OMB) for
review under section 3507(d) of the
PRA. OMB, the general public, and
other Federal agencies will be invited to
comment on the new or modified
information collection requirements
contained in this proceeding. In
addition, the Commission notes that
pursuant to the Small Business
Paperwork Relief Act of 2002, Public
Law 107–198, see 44 U.S.C. 3506(c)(4),
the Commission previously sought
specific comment on how the
Commission might further reduce the
information collection burden for small
business concerns with fewer than 25
employees.
D. Congressional Review Act
83. The Commission will send a copy
of this Order in a report to be sent to
Congress and the Government
Accountability Office pursuant to the
Congressional Review Act, see U.S.C.
801(a)(1)(A).
IV. Ordering Clauses
84. Accordingly, it is ordered,
pursuant to sections 1, 2, 4(i), 4(o), 301,
303(r), 303(v), 307, 309, 335, 403,
624(g), 706, and 713 of the
Communications Act of 1934, as
amended, 47 U.S.C. 151, 152, 154(i),
154(o), 301, 303(r), 303(v), 307, 309,
335, 403, 544(g), 606, and 613, as well
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as by sections 602(a),(b),(c), (f), 603, 604
and 606 of the WARN Act, 47 U.S.C.
1202(a), (b), (c), (f), 1203, 1204 and
1206, and the Twenty-First Century
Communications and Video
Accessibility Act of 2010, Public Law
111–260 and Public Law 111–265, that
this Report and Order is adopted.
85. It is further ordered that the rule
amendments adopted herein will
become effective September 10, 2018,
except that the amendments to sections
11.33 and 11.56 will become effective
August 12, 2019, and the amendments
to sections 11.45(b) and 11.61, which
contain modifications to information
collection requirements that are
currently approved by the Office of
Management and Budget (OMB), will
become effective on the date specified in
a Commission notice published in the
Federal Register announcing their
approval (which date shall not be less
than 30 days after publication of this
Report and Order in the Federal
Register).
86. It is further ordered that the
Commission’s Consumer and
Governmental Affairs Bureau, Reference
Information Center, shall send a copy of
this Report and Order, including the
Final Regulatory Flexibility Analysis, to
the Chief Counsel for Advocacy of the
Small Business Administration.
List of Subjects in 47 CFR Part 11
Radio, Television.
Federal Communications Commission.
Marlene H. Dortch,
Secretary.
Final Rules
For the reasons discussed in the
preamble, the Federal Communications
Commission amends 47 CFR part 11 as
follows:
PART 11—EMERGENCY ALERT
SYSTEM (EAS)
1. The authority citation for part 11
continues to read as follows:
■
Authority: 47 U.S.C. 151, 154(i) and (o),
303(r), 544(g) and 606.
2. Amend § 11.33 by revising
paragraph (a)(10) to read as follows:
■
§ 11.33
EAS Decoder.
(a) * * *
(10) Message Validity. An EAS
Decoder must provide error detection
and validation of the header codes of
each message to ascertain if the message
is valid. Header code comparisons may
be accomplished through the use of a
bit-by-bit compare or any other error
detection and validation protocol. A
header code must only be considered
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valid when two of the three headers
match exactly; the Origination Date/
Time field (JJJHHMM) is not more than
15 minutes in the future and the
expiration time (Origination Date/Time
plus Valid Time TTTT) is in the future
(i.e., current time at the EAS equipment
when the alert is received is between
origination time minus 15 minutes and
expiration time). Duplicate messages
must not be relayed automatically.
*
*
*
*
*
■ 3. Revise § 11.45 to read as follows:
§ 11.45 Prohibition of false or deceptive
EAS transmissions.
daltland on DSKBBV9HB2PROD with RULES
(a) No person may transmit or cause
to transmit the EAS codes or Attention
Signal, or a recording or simulation
thereof, in any circumstance other than
in an actual National, State or Local
Area emergency or authorized test of the
EAS; or as specified in §§ 10.520(d),
11.46, and 11.61 of this chapter.
(b) No later than twenty-four (24)
hours of an EAS Participant’s discovery
(i.e., actual knowledge) that it has
transmitted or otherwise sent a false
alert to the public, the EAS Participant
send an email to the Commission at the
FCC Ops Center at FCCOPS@fcc.gov,
informing the Commission of the event
and of any details that the EAS
Participant may have concerning the
event.
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■
4. Revise § 11.46 to read as follows:
§ 11.46 EAS public service
announcements.
§ 11.56 Obligation to process CAPformatted EAS messages.
*
*
*
*
*
(c) EAS Participants shall configure
their systems to reject all CAP-formatted
EAS messages that include an invalid
digital signature.
*
*
*
*
*
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6. Amend § 11.61 by adding paragraph
(a)(5) to read as follows:
■
§ 11.61
EAS Participants may use the EAS
Attention Signal and a simulation of the
EAS codes as provided by FEMA in EAS
Public Service Announcements (PSAs)
(including commercially-sponsored
announcements, infomercials, or
programs) provided by federal, state,
and local government entities, or nongovernmental organizations, to raise
public awareness about emergency
alerting. This usage is only permitted if
the PSA is presented in a nonmisleading and technically harmless
manner, including with the explicit
statement that the Attention Signal and
EAS code simulation are being used in
the context of a PSA for the purpose of
educating the viewing or listening
public about emergency alerting.
■ 5. Amend § 11.56 by redesignating
paragraph (c) as paragraph (d) and
adding new paragraph (c) to read as
follows:
39621
Tests of EAS procedures.
(a) * * *
(5) Live Code Tests. EAS Participants
may participate in no more than two (2)
‘‘Live Code’’ EAS Tests per calendar
year that are conducted to exercise the
EAS and raise public awareness for it,
provided that the entity conducting the
test:
(i) Notifies the public before the test
that live event codes will be used, but
that no emergency is, in fact, occurring;
(ii) To the extent technically feasible,
states in the test message that the event
is only a test;
(iii) Coordinates the test among EAS
Participants and with state and local
emergency authorities, the relevant
SECC (or SECCs, if the test could affect
multiple states), and first responder
organizations, such as PSAPs, police,
and fire agencies); and,
(iv) Consistent with § 11.51, provides
in widely accessible formats the
notification to the public required by
this subsection that the test is only a
test, and is not a warning about an
actual emergency.
*
*
*
*
*
[FR Doc. 2018–17096 Filed 8–9–18; 8:45 am]
BILLING CODE 6712–01–P
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Agencies
[Federal Register Volume 83, Number 155 (Friday, August 10, 2018)]
[Rules and Regulations]
[Pages 39610-39621]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-17096]
=======================================================================
-----------------------------------------------------------------------
FEDERAL COMMUNICATIONS COMMISSION
47 CFR Part 11
[PS Docket Nos. 15-94, 15-91; FCC 18-94]
Emergency Alert System; Wireless Emergency Alerts
AGENCY: Federal Communications Commission.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: In this document, the Federal Communications Commission (FCC
or Commission) adopts changes to its rules governing the Emergency
Alert System (EAS) to facilitate ``Live Code Tests'' of the EAS; permit
use of the EAS Attention Signal and EAS Header Code
[[Page 39611]]
tones in Public Service Announcements; implement certain alert
authentication and validation procedures; and require reporting of
false alerts.
DATES: Effective September 10, 2018, except for the amendments to 47
CFR 11.33 and 11.56, which are effective August 12, 2019, and the
amendments to 47 CFR 11.45(b) and 11.61, which contain modifications to
information collection requirements that were previously approved by
the Office of Management and Budget (OMB). Once OMB has approved the
modifications to these collections, the Commission will publish a
document in the Federal Register announcing the effective date.
FOR FURTHER INFORMATION CONTACT: Gregory Cooke, Deputy Chief, Policy
and Licensing Division, Public Safety and Homeland Security Bureau, at
(202) 418-7452, or by email at [email protected]. For additional
information concerning the information collection requirements
contained in this document, send an email to [email protected] or contact
Nicole Ongele, Office of Managing Director, Performance Evaluation and
Records Management, 202-418-2991, or by email to [email protected].
SUPPLEMENTARY INFORMATION: This is a summary of the Commission's Report
and Order (Order) in PS Docket Nos. 15-94 and 15-91, FCC 18-94, adopted
on July 12, 2018, and released on July 13, 2018. The full text of this
document is available for inspection and copying during normal business
hours in the FCC Reference Center (Room CY-A257), 445 12th Street SW,
Washington, DC 20554. The full text may also be downloaded at:
www.fcc.gov.
Synopsis
1. In the Order, the Commission adopts changes to its Part 11 EAS
rules to improve the effectiveness and public utility of the EAS by
facilitating more effective public safety tests and exercises using the
EAS, implementing measures to help prevent distribution of false alerts
over the EAS, and requiring reporting of false alerts.
I. Background
2. The EAS is a national public warning system through which EAS
Participants deliver alerts to the public to warn them of impending
emergencies. The primary purpose of the EAS is to provide the President
of the United States (President) with ``the capability to provide
immediate communications and information to the general public at the
National, State and Local Area levels during periods of national
emergency.'' State and local authorities also use this common
distribution architecture of the EAS to distribute voluntary weather-
related and other emergency alerts. Further, testing of the system at
the state and local level increases the proficiency of local emergency
personnel, provides insight into the system's functionality and
effectiveness at the federal level, and enhances the public's ability
to respond to EAS alerts when they occur. The integrity of the EAS is
maintained through the Commission's EAS rules, which set forth the
parameters and frequency with which EAS Participants must test the
system, prohibit the unauthorized use of the EAS Attention Signal and
codes, and require EAS Participants to keep their EAS equipment in good
working order.
II. Discussion
A. Building Effective Alerting Exercise Programs
1. Live Code Testing
3. Section 11.31(e) of the Commission's rules sets forth the event
header codes that are used for alerts in specific emergency situations
(e.g., TOR for tornado), as well as the specific test codes to be used
for national periodic tests (NPT), required monthly tests (RMT), and
required weekly tests (RWT). Section 11.45 of the EAS rules states that
``[n]o person may transmit or cause to transmit the EAS codes or
Attention Signal, or a recording or simulation thereof, in any
circumstance other than in an actual National, State or Local Area
emergency or authorized test of the EAS.'' EAS Participants regularly
have sought waivers of these rules to use the event codes used for
actual alerts (i.e., ``live'' event header codes) and the EAS Attention
Signal to conduct local EAS public awareness and proficiency training
exercises. In the Notice of Proposed Rulemaking (NPRM) in PS Docket
Nos. 15-94 and 15-91, 81 FR 15792 (March 24, 2016), the Commission
proposed amending the rules to allow EAS Participants to conduct tests
that use live EAS header codes and the EAS Attention Signal under
specific circumstances without submitting a waiver request. The
Commission also proposed amending section 11.45 to exempt state-
designed EAS live code exercises from the prohibition against false or
misleading use of the EAS Attention Signal.
4. The Order amends section 11.45 to exempt EAS live code exercises
from the prohibition against false or misleading use of the EAS
Attention Signal. The Order also amends section 11.61 to include ``Live
Code Tests'' as a separate category of alerting exercise that EAS
Participants may undertake voluntarily, provided such live code tests
are conducted in accordance with specific parameters. Specifically, EAS
Participants may participate in live code tests where the entity
conducting the test: (1) Notifies the public before the test that live
event codes will be used, but that no emergency is, in fact, occurring;
(2) to the extent technically feasible, states in the test message that
the event is only a test; (3) coordinates the test among EAS
Participants and with state and local emergency authorities, the
relevant State Emergency Communication Committee (SECC) (or SECCs, if
the test could affect multiple states), and first responder
organizations, such as Public Safety Answering Points (PSAPs), police,
and fire agencies; and (4) consistent with the Commission's rules,
provides in widely accessible formats the required notification to the
public that the test is not, in fact, a warning about an actual
emergency. The Order requires that live code tests state in the alert
message that the event is only a test as a further safeguard against
public confusion, especially among those who are blind, deaf and
hearing impaired.
5. The Commission agrees with commenters that EAS Participants such
as cable operators and broadcasters must be given sufficient notice of
live code tests to benefit from them and to allow for planning and
coordination to assess and mitigate the impact on downstream equipment
and subscribers. Accordingly, the Commission expects test alert
originators to coordinate with these stakeholders in good faith, and
encourages them to provide the notice and coordination required by the
rules adopted in the Order no later than two weeks prior to the test.
As part of that coordination and outreach, the Commission encourages
test alert originators to file notice of their intent to conduct a test
in the EAS docket (PS Docket No. 15-94).
6. Commenters generally support voluntary live code testing, and
agree that such testing can yield important public safety benefits. The
record also indicates that live code testing exercises can be tailored
to improve public safety at the local or community level.
7. To avoid customer exhaustion and any dissipation of the value of
alerting that could come from over-testing the system to the public,
the Order limits the number of live code tests that an alert originator
may conduct under the new rules it adopts to two (2) within any
calendar year. The Commission will continue to monitor the
implementation of live code tests to determine whether additional
measures are warranted.
[[Page 39612]]
2. EAS Public Service Announcements (PSAs)
8. Section 11.46 of the Commission's rules provides that PSAs,
while permissible, ``may not be a part of alerts or tests, and may not
simulate or attempt to copy alert tones or codes.'' The Commission has
granted requests from non-governmental organizations (NGOs) and FEMA
for waivers of these rules to raise public awareness about the EAS
through PSAs that use the EAS Attention Signal, and, in one instance, a
simulation of header code sounds. In 2016, the Commission amended its
rules to allow authorized entities to use the Attention Signal in PSAs
about WEA. In the NPRM, the Commission proposed allowing EAS
Participants to use EAS header codes and the Attention Signal in
coordination with federal, state, and local government entities without
a waiver, provided that the PSAs are presented in a non-misleading
manner that does not cause technical issues for downstream equipment.
9. The Order amends section 11.46 of the Commission's rules to
allow, under certain circumstances, EAS Participants to use the
Attention Signal in EAS PSAs (including commercially-sponsored
announcements, infomercials, or programs) provided by federal, state,
and local government entities, and NGOs, to raise public awareness
about emergency alerting. This usage is only permitted if the PSA is
presented in a non-misleading and technically harmless manner,
including with the explicit statement that the Attention Signal is
being used in the context of a PSA for the purpose of educating the
viewing or listening public about emergency alerting. The Order also
makes conforming changes to section 11.45.
10. The Commission declines to allow live EAS header codes to be
used in EAS PSAs because, as suggested by some commenters, EAS PSAs
containing live EAS header codes could have unintended consequences,
including triggering false alerts. However, the Commission will permit
the simulation of header code audio tones developed by FEMA in PSAs to
deliver the familiar sounds of live EAS header codes that the public
associates with the EAS in a manner that would not trigger an actual
alert. Entities that want to simulate the EAS header codes in their
PSAs must do so using FEMA's simulation. The Commission observes that
FEMA's simulation of the header code audio tones is subject to the
restrictions of section 11.45 and therefore should not be used for
purposes other than the EAS PSAs described in the Order. In adopting
these PSA rules, the Commission notes agreement with commenters that
EAS PSAs can be effective tools to raise public awareness of the EAS,
particularly those that may be new to this country or have limited
English proficiency, who do not recognize EAS tones and could benefit
from learning about the EAS's benefits.
3. Effective Dates
11. The Commission proposed that these rules would become effective
30 days from the date of their publication in the Federal Register. No
commenters opposed this time frame. Accordingly, the rule amendments
for sections 11.45(a) and 11.46, both of which relate to PSAs, will
become effective 30 days after publication of the Order in the Federal
Register.
12. The rule amendments for section 11.61, which cover ``Live Code
Tests,'' will become effective on the date specified in a Commission
notice published in the Federal Register announcing their approval
under the Paperwork Reduction Act by the Office of Management and
Budget, which date will be at least 30 days after the date that this
Order and rules adopted herein are published in the Federal Register.
B. Ensuring EAS Readiness and Reliability
1. False Alert Reporting
13. The Commission agrees with commenters that false alert
reporting would benefit ongoing EAS reliability, and that having timely
information about false alerts could help identify and mitigate
problems with the EAS. Accordingly, the Commission revises its rules to
require that no later than twenty-four (24) hours of an EAS
Participant's discovery that it has transmitted or otherwise sent a
false alert to the public, the EAS Participant send an email to the FCC
Ops Center (at [email protected]), informing the Commission of the event
and of any details that the EAS Participant may have concerning the
event. If an EAS Participant has no actual knowledge that it has issued
a false alert, then it would not be required to take any action.
2. Alert Authentication
14. The Order revises section 11.56(c) to require that EAS
Participants configure their systems to reject all CAP-formatted EAS
messages that contain an invalid digital signature, thus helping to
prevent the transmission of a false alert. All commenters addressing
this issue supported the Commission's proposal and generally
acknowledged the benefits of digitally signing CAP alerts. Although the
Order requires EAS Participants to configure their systems in such a
way as to reject alerts with invalid digital signatures, the Commission
does not mandate the use of digital signatures at this time. With
respect to broadcast-based, legacy alerts, the Commission believes it
would be premature to adopt rules pertaining to specific authentication
mechanisms for such alerts at this time. Based on the lack of consensus
on an approach forward in the record, the Commission believes it would
be prudent to await the recommendation from the Communications
Security, Reliability and Interoperability Council VI on this issue
rather than moving ahead with one of the originally proposed
mechanisms.
3. Alert Validation
15. Section 11.33(a)(10) specifies certain error detection and
validation requirements for decoders. Currently, the Commission's rules
do not require validation of alerts based upon the time period or year
parameter in the ``time stamp'' portion of the header code, i.e., the
portion that determines the correct date and time for the alert.
Further, the Commission's rules do not require that valid alerts have
an expiration time in the future. Thus, an alert's time stamp does not
consistently serve as a filter through which officials can ensure an
alert is confined to its relevant time frame.
16. Alert time validation. The alert message validation
requirements in the EAS rules require that EAS decoders validate alert
messages by comparing the three EAS header tone bursts that commence
all EAS alerts to ensure that at least two out of three match--the
content of those header tones is not reviewed for incoming alert
message validity. The Order amends section 11.33(a)(10) so that alert
message validation confirms that the alert's expiration time is set to
take place in the future, and that its origination time takes place no
more than 15 minutes in the future.
17. The Commission observes that commenters generally support
proposals that reduce the potential for repeat broadcasts of outdated
alerts by validation based on specific origination and expiration
times, and support a 15-minute timeframe, and believe that such
requirement will require minimal software updates. Based on the record,
most EAS equipment already validates the time of EAS messages, blocking
alerts that have expired. Remaining equipment can achieve this
capability
[[Page 39613]]
by installing the necessary software as part of a regularly scheduled
in-version equipment software update.
18. Year Parameter. The Commission declines to require a year
parameter in the time stamp section of the EAS Protocol. The record
indicates that adding a year parameter requirement is not technically
feasible without significant modification to the current EAS Protocol,
as well as all associated equipment, which would be extremely expensive
and burdensome, and would cause significant disruption to the NOAA
Weather Radio infrastructure.
4. Compliance Timeline
19. The Order adopts a one-year compliance timeframe from
publication in the Federal Register. The record indicates that most EAS
Participants already have EAS equipment capable of complying with these
requirements. The Commission also observes that a one-year time frame
would allow equipment manufacturers to develop and make available
software updates to implement these requirements in deployed equipment
that do not already meet these requirements.
20. The rule amendments for section 11.45(b), which address the
filing of false alert reports will become effective on the date
specified in a Commission notice published in the Federal Register
announcing their approval under the Paperwork Reduction Act by the
Office of Management and Budget, which date will be at least 30 days
after the date that this Order and rules adopted herein are published
in the Federal Register.
C. Benefit-Cost Analysis
21. The rule changes adopted in the Order reduce burdens by
eliminating waiver filing time and costs. To the extent the Commission
adopts new requirements, it does so in a minimally burdensome way that
either imposes no additional costs or imposes only minimal costs. Other
than the alert validation and authentication requirements, for which a
one-year compliance timeframe is provided, only the new false alert
reporting rule will involve new costs to EAS Participants. As discussed
below, the Commission concludes that the benefits of these rule changes
exceed their costs.
1. Benefits
22. The rule changes adopted in the Order will reduce regulatory
burden on EAS stakeholders. Waivers will no longer be needed for live
code testing. The rule changes also reduce the regulatory burden on EAS
Participants by allowing them to produce PSAs using EAS header codes
and a simulated Attention Signal without requesting a waiver. This
change will make the process of producing a PSA less costly, and
promote greater proficiency in the use of EAS, both by EAS alert
initiators and EAS Participants.
23. These rule changes will also help prevent incidents of misuse
and abuse of the EAS. The authentication and validation rule changes
will require the use of EAS equipment's existing capabilities to help
prevent misuse and abuse of the EAS, thus protecting its integrity and
maintaining its credibility with the public and alerting officials. To
provide an estimate of the value of the benefits of the rules adopted
in the Order, the Commission turns to the overall value of the EAS.
Scholars agree that public safety in the United States has improved
over the years because its early warning systems for recurring hazards,
such as lightning, floods, storms and heat waves, are continually
improving. By reducing the frequency of false alerts, the rule changes
adopted in the Order strengthen public confidence in the EAS, thus
avoiding erosion in its overall value.
2. Costs
24. The rule changes to section 11.61 for live code testing and to
sections 11.45 and 11.46 for public service announcements do not impose
any new costs. Rather, they codify requirements that were previously
imposed on waivers granted by the Commission. Removing the requirement
to file a waiver removes the need for legal and other staff time
associated with filing a waiver. The new rules therefore eliminate any
legal or administrative costs that were associated with filing waiver
requests.
25. The Commission estimates that compliance with the alert
authentication and validation rule changes will involve only minimal
costs to EAS Participants. Current EAS rules require that EAS
Participants must have EAS equipment that is capable of being updated
via software. According to the record, most EAS equipment deployed in
the field is already configured to support the validation and
authentication rule changes adopted in the Order. The one-year
compliance period adopted for these rule changes will provide
sufficient time for any necessary update to be deployed within a
previously scheduled in-version equipment software update. In
combination, these factors result in no incremental cost to EAS
Participants for installing the update.
26. With respect to the new false alert reporting requirement, the
Commission concludes that the cost of reporting false alerts will be
$11,600 per year, based upon an average of 290 EAS participants each
spending 15 minutes to file one report.
27. Therefore, based on the foregoing analysis, the Commission
finds it reasonable to conclude that the benefits of the rules adopted
in the Order will exceed the costs of their implementation. The rule
changes will support greater testing and awareness of the EAS and
promote the security of the EAS. They will also likely result in fewer
false alerts, and thus fewer unnecessary 911 calls. The benefits of
these rule changes will continue to accrue to the public each year,
while the imposed costs are low.
III. Procedural Matters
A. Accessible Formats
28. To request materials in accessible formats for people with
disabilities (Braille, large print, electronic files, audio format),
send an email to [email protected] or call the Consumer & Governmental
Affairs Bureau at 202-418-0530 (voice), 202-418-0432 (tty).
B. Regulatory Flexibility Analysis
29. As required by the Regulatory Flexibility Act of 1980, as
amended (RFA), an Initial Regulatory Flexibility Analysis (IRFA) was
incorporated in the Notice of Proposed Rulemaking (NPRM) in PS Docket
Nos. 15-94 and 15-91, 81 FR 15792 (March 24, 2016). The Commission
sought written public comment on the proposals in the NPRM, including
comment on the IRFA. No comments were filed addressing the IRFA. This
present Final Regulatory Flexibility Analysis (FRFA) conforms to the
RFA.
1. Need for, and Objectives of, the Report and Order
30. In today's Report and Order (Order), the Commission adopts
rules that fall into two categories: (1) Building stronger alerting
exercise programs and greater awareness of the EAS; and (2) taking
steps to ensure the readiness and reliability of the EAS to protect it
against accidental misuse and malicious intrusion.
31. With respect to building effective public safety exercises and
supporting greater testing and awareness of the EAS, the Commission
permits the use of ``live code'' EAS public safety exercises to empower
communities to meet their emergency preparedness needs and to provide
opportunities for system verification and proficiency training. The
Commission also allows EAS Participants to use the EAS Attention Signal
and simulation of the header
[[Page 39614]]
codes in Public Service Announcements (PSAs) provided by federal,
state, and local government entities, as well as non-governmental
organizations (NGOs) to raise public awareness about emergency
alerting.
32. With respect to taking steps to ensure the readiness and
reliability of the EAS, the Commission requires EAS Participants, upon
discovery (i.e., actual knowledge) that they have transmitted or
otherwise sent a false alert to the public, to provide minimal reports
to the Commission. The Commission also requires EAS Participants to
reject any CAP-formatted EAS messages that contain an invalid digital
signature, and require EAS Participants to reject all EAS alerts that
they receive with header code date/time data inconsistent with the
current date and time.
2. Summary of Significant Issues Raised by Public Comments in Response
to the IRFA
33. There were no comments filed that specifically addressed the
proposed rules and policies presented in the IRFA.
3. Response To Comments by the Chief Counsel for Advocacy of the Small
Business Administration
34. Pursuant to the Small Business Jobs Act of 2010, which amended
the RFA, the Commission is required to respond to any comments filed by
the Chief Counsel for Advocacy of the Small Business Administration
(SBA), and to provide a detailed statement of any change made to the
proposed rules as a result of those comments.
35. The Chief Counsel did not file any comments in response to the
proposed rules in this proceeding.
4. Description and Estimate of the Number of Small Entities to Which
Rules Will Apply
36. 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 rules adopted, herein. 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 SBA.
37. Small Businesses, Small Organizations, and Small Governmental
Jurisdictions. The Commission's actions, over time, may affect small
entities that are not easily categorized at present. The Commission
therefore describes here, at the outset, three broad groups of small
entities that could be directly affected herein. First, while there are
industry specific size standards for small businesses that are used in
the regulatory flexibility analysis, according to data from the SBA's
Office of Advocacy, in general a small business is an independent
business having fewer than 500 employees. These types of small
businesses represent 99.9% of all businesses in the United States which
translates to 28.8 million businesses.
38. Next, the type of small entity described as a ``small
organization'' is generally ``any not-for-profit enterprise which is
independently owned and operated and is not dominant in its field.''
Nationwide, as of Aug. 2016, there were approximately 356,494 small
organizations based on registration and tax data filed by nonprofits
with the Internal Revenue Service (IRS).
39. Finally, the small entity described as a ``small governmental
jurisdiction'' is defined generally as ``governments of cities,
counties, towns, townships, villages, school districts, or special
districts, with a population of less than fifty thousand.'' U.S. Census
Bureau data from the 2012 Census of Governments indicates that there
were 90,056 local governmental jurisdictions consisting of general
purpose governments and special purpose governments in the United
States. Of this number there were 37,132 General purpose governments
(county, municipal and town or township) with populations of less than
50,000 and 12,184 Special purpose governments (independent school
districts and special districts) with populations of less than 50,000.
The 2012 U.S. Census Bureau data for most types of governments in the
local government category shows that the majority of these governments
have populations of less than 50,000. Based on this data the Commission
estimates that at least 49,316 local government jurisdictions fall in
the category of ``small governmental jurisdictions.''
40. Radio Stations. This Economic Census category ``comprises
establishments primarily engaged in broadcasting aural programs by
radio to the public. Programming may originate in their own studio,
from an affiliated network, or from external sources.'' The SBA has
established a small business size standard for this category as firms
having $38.5 million or less in annual receipts. Economic Census data
for 2012 shows that 2,849 radio station firms operated during that
year. Of that number, 2,806 operated with annual receipts of less than
$25 million per year, 17 with annual receipts between $25 million and
$49,999,999 million and 26 with annual receipts of $50 million or more.
Therefore, based on the SBA's size standard the majority of such
entities are small entities.
41. According to Commission staff review of the BIA/Kelsey, LLC's
Media Access Pro Radio Database as of January 2018, about 11,261 (or
about 99.9 percent) of 11,383 commercial radio stations had revenues of
$38.5 million or less and thus qualify as small entities under the SBA
definition. The Commission has estimated the number of licensed
commercial AM radio stations to be 4,639 stations and the number of
commercial FM radio stations to be 6,744, for a total number of 11,383.
The Commission notes that the Commission has also estimated the number
of licensed NCE radio stations to be 4,120. Nevertheless, the
Commission does not compile and otherwise does not have access to
information on the revenue of NCE stations that would permit it to
determine how many such stations would qualify as small entities.
42. The Commission also notes, that in assessing whether a business
entity qualifies as small under the above definition, business control
affiliations must be included. The Commission's estimate therefore
likely overstates the number of small entities that might be affected
by its action, because the revenue figure on which it is based does not
include or aggregate revenues from affiliated companies. In addition,
to be determined a ``small business,'' an entity may not be dominant in
its field of operation. The Commission further notes, that it is
difficult at times to assess these criteria in the context of media
entities, and the estimate of small businesses to which these rules may
apply does not exclude any radio station from the definition of a small
business on this basis, thus the Commission's estimate of small
businesses may therefore be over-inclusive. Also, as noted above, 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 estimates of small businesses to which they
apply may be over-inclusive to this extent.
43. Low-Power FM Stations. Low Power FM Stations are classified in
the category of Radio Stations and are assigned the same NAICs Code as
licensees of radio stations. This U.S.
[[Page 39615]]
industry, Radio Stations, comprises establishments primarily engaged in
broadcasting aural programs by radio to the public. Programming may
originate in their own studio, from an affiliated network, or from
external sources. The SBA has established a small business size
standard which consists of all radio stations whose annual receipts are
$38.5 million dollars or less. U.S. Census data for 2012 indicates that
2,849 radio station firms operated during that year. Of that number,
2,806 operated with annual receipts of less than $25 million per year,
17 with annual receipts between $25 million and $49,999,999 million and
26 with annual receipts of $50 million or more. Based on U.S. Census
data, the Commission concludes that the majority of Low Power FM
Stations are small.
44. Television Broadcasting. This Economic Census category
``comprises establishments primarily engaged in broadcasting images
together with sound.'' These establishments operate television
broadcast studios and facilities for the programming and transmission
of programs to the public. These establishments also produce or
transmit visual programming to affiliated broadcast television
stations, which in turn broadcast the programs to the public on a
predetermined schedule. Programming may originate in their own studio,
from an affiliated network, or from external sources. The SBA has
created the following small business size standard for such businesses:
Those having $38.5 million or less in annual receipts. The 2012
Economic Census reports that 751 firms in this category operated in
that year. Of that number, 656 had annual receipts of $25,000,000 or
less, 25 had annual receipts between $25,000,000 and $49,999,999 and 70
had annual receipts of $50,000,000 or more. Based on this data the
Commission therefore estimates that the majority of commercial
television broadcasters are small entities under the applicable SBA
size standard.
45. The Commission has estimated the number of licensed commercial
television stations to be 1,378. Of this total, 1,258 stations (or
about 91 percent) had revenues of $38.5 million or less, according to
Commission staff review of the BIA Kelsey Inc. Media Access Pro
Television Database (BIA) on November 16, 2017, and therefore these
licensees qualify as small entities under the SBA definition. In
addition, the Commission has estimated the number of licensed
noncommercial educational (NCE) television stations to be 395.
Notwithstanding, the Commission does not compile and otherwise does not
have access to information on the revenue of NCE stations that would
permit it to determine how many such stations would qualify as small
entities. There are also 2,367 low power television stations, including
Class A stations (LPTV) and 3,750 TV translator stations. Given the
nature of these services, the Commission will presume that all of these
entities qualify as small entities under the above SBA small business
size standard.
46. The Commission notes, however, that in assessing whether a
business concern qualifies as ``small'' under the above definition,
business (control) affiliations must be included. The Commission's
estimate, therefore likely overstates the number of small entities that
might be affected by the Commission's action, because the revenue
figure on which it is based does not include or aggregate revenues from
affiliated companies. In addition, another element of the definition of
``small business'' requires that an entity not be dominant in its field
of operation. The Commission is unable at this time to define or
quantify the criteria that would establish whether a specific
television broadcast station is dominant in its field of operation.
Accordingly, the estimate of small businesses to which rules may apply
does not exclude any television station from the definition of a small
business on this basis and is therefore possibly over-inclusive. Also,
as noted above, 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 its estimates of small
businesses to which they apply may be over-inclusive to this extent.
47. Wired Telecommunications Carriers. The U.S. Census Bureau
defines this industry as ``establishments primarily engaged in
operating and/or providing access to transmission facilities and
infrastructure that they own and/or lease for the transmission of
voice, data, text, sound, and video using wired communications
networks. Transmission facilities may be based on a single technology
or a combination of technologies. Establishments in this industry use
the wired telecommunications network facilities that they operate to
provide a variety of services, such as wired telephony services,
including VoIP services, wired (cable) audio and video programming
distribution, and wired broadband internet services. By exception,
establishments providing satellite television distribution services
using facilities and infrastructure that they operate are included in
this industry.'' The SBA has developed a small business size standard
for Wired Telecommunications Carriers, which consists of all such
companies having 1,500 or fewer employees. U.S. Census Bureau data for
2012 shows that there were 3,117 firms that operated that year. Of this
total, 3,083 operated with fewer than 1,000 employees. Thus, under this
size standard, the majority of firms in this industry can be considered
small.
48. Cable and Other Subscription Programming. This industry
comprises establishments primarily engaged in operating studios and
facilities for the broadcasting of programs on a subscription or fee
basis. The broadcast programming is typically narrowcast in nature
(e.g., limited format, such as news, sports, education, or youth-
oriented). These establishments produce programming in their own
facilities or acquire programming from external sources. The
programming material is usually delivered to a third party, such as
cable systems or direct-to-home satellite systems, for transmission to
viewers. The SBA size standard for this industry establishes as small,
any company in this category which has annual receipts of $38.5 million
or less. According to 2012 U.S. Census Bureau data, 367 firms operated
for that entire year. Of that number, 319 operated with annual receipts
of less than $25 million a year and 48 firms operated with annual
receipts of $25 million or more. Based on this data, the Commission
estimates that the majority of firms operating in this industry are
small.
49. Cable Companies and Systems (Rate Regulation). The Commission
has developed its own small business size standards for the purpose of
cable rate regulation. Under the Commission's rules, a ``small cable
company'' is one serving 400,000 or fewer subscribers nationwide.
Industry data indicate that there are currently 4,600 active cable
systems in the United States. Of this total, all but nine cable
operators nationwide are small under the 400,000-subscriber size
standard. In addition, under the Commission's rate regulation rules, a
``small system'' is a cable system serving 15,000 or fewer subscribers.
Current Commission records show 4,600 cable systems nationwide. Of this
total, 3,900 cable systems have fewer than 15,000 subscribers, and 700
systems have 15,000 or more subscribers, based on the same records.
Thus, under this standard as well, the Commission estimates that most
cable systems are small entities.
50. Cable System Operators (Telecom Act Standard). The
Communications Act of 1934, as amended, also contains
[[Page 39616]]
a size standard for small cable system operators, which is ``a cable
operator that, directly or through an affiliate, serves in the
aggregate fewer than one percent of all subscribers in the United
States and is not affiliated with any entity or entities whose gross
annual revenues in the aggregate exceed $250,000,000.'' There are
approximately 52,403,705 cable video subscribers in the United States
today. Accordingly, an operator serving fewer than 524,037 subscribers
shall be deemed a small operator if its annual revenues, when combined
with the total annual revenues of all its affiliates, do not exceed
$250 million in the aggregate. Based on available data, the Commission
finds that all but nine incumbent cable operators are small entities
under this size standard. The Commission notes that it neither requests
nor collects information on whether cable system operators are
affiliated with entities whose gross annual revenues exceed $250
million. Although it seems certain that some of these cable system
operators are affiliated with entities whose gross annual revenues
exceed $250,000,000, the Commission is unable at this time to estimate
with greater precision the number of cable system operators that would
qualify as small cable operators under the definition in the
Communications Act.
51. Satellite Telecommunications. This category comprises firms
``primarily engaged in providing telecommunications services to other
establishments in the telecommunications and broadcasting industries by
forwarding and receiving communications signals via a system of
satellites or reselling satellite telecommunications.'' Satellite
telecommunications service providers include satellite and earth
station operators. The category has a small business size standard of
$32.5 million or less in average annual receipts under SBA rules. For
this category, U.S. Census Bureau data for 2012 shows that there were a
total of 333 firms that operated for the entire year. Of this total,
299 firms had annual receipts of less than $25 million. Consequently,
the Commission estimates that the majority of satellite
telecommunications providers are small entities.
52. All Other Telecommunications. The ``All Other
Telecommunications'' category is comprised of establishments primarily
engaged in providing specialized telecommunications services, such as
satellite tracking, communications telemetry, and radar station
operation. This industry also includes establishments primarily engaged
in providing satellite terminal stations and associated facilities
connected with one or more terrestrial systems and capable of
transmitting telecommunications to, and receiving telecommunications
from, satellite systems. Establishments providing internet services or
voice over internet protocol (VoIP) services via client-supplied
telecommunications connections are also included in this industry. The
SBA has developed a small business size standard for All Other
Telecommunications, which consists of all such firms with annual
receipts of $32.5 million or less. For this category, U.S. Census
Bureau data for 2012 shows that there were 1,442 firms that operated
for the entire year. Of those firms, a total of 1,400 had annual
receipts less than $25 million and 42 firms had annual receipts of $25
million to $49,999,999. Thus, the Commission estimates that the
majority of ``All Other Telecommunications'' firms potentially affected
by the Commission's action can be considered small.
53. The Educational Broadcasting Services. Cable-based Educational
Broadcasting Services have been included in the broad economic census
category and Small Business Administration (SBA) size standard for
Wired Telecommunications Carriers since 2007. Wired Telecommunications
Carriers, which was developed for small wireline businesses is defined
as follows: ``This industry comprises establishments primarily engaged
in operating and/or providing access to transmission facilities and
infrastructure that they own and/or lease for the transmission of
voice, data, text, sound, and video using wired telecommunications
networks. Transmission facilities may be based on a single technology
or a combination of technologies. Establishments in this industry use
the wired telecommunications network facilities that they operate to
provide a variety of services, such as wired telephony services,
including VoIP services; wired (cable) audio and video programming
distribution; and wired broadband internet services.'' The SBA has
developed a small business size standard for this category, which is
all such businesses having 1,500 or fewer employees. U.S. Census data
for 2012 shows that there were 3,117 firms that operated that year. Of
this total, 3,083 operated with fewer than 1,000 employees. Thus, under
this size standard, the majority of firms in this industry can be
considered small. In addition to Census Bureau data, the Commission's
internal records indicate that, as of October 2014, there were 2,206
active EBS licenses. The Commission estimates that of these 2,206
licenses, the majority are held by non-profit educational institutions
and school districts, which are defined by statute as small businesses.
54. Direct Broadcast Satellite (DBS) Service. DBS Service is a
nationally distributed subscription service that delivers video and
audio programming via satellite to a small parabolic ``dish'' antenna
at the subscriber's location. DBS is included in the SBA's economic
census category ``Wired Telecommunications Carriers.'' The Wired
Telecommunications Carriers industry comprises establishments primarily
engaged in operating and/or providing access to transmission facilities
and infrastructure that they own and/or lease for the transmission of
voice, data, text, sound, and video using wired telecommunications
networks. Transmission facilities may be based on a single technology
or combination of technologies. Establishments in this industry use the
wired telecommunications network facilities that they operate to
provide a variety of services, such as wired telephone services,
including VoIP services, wired (cable) audio, and video programming
distribution, and wired broadband internet services. By exception,
establishments providing satellite television distribution services
using facilities and infrastructure that they operate are included in
this industry. The SBA determines that a wireline business is small if
it has fewer than 1,500 employees. U.S. Census Bureau data for 2012
indicates that 3,117 wireline companies were operational during that
year. Of that number, 3,083 operated with fewer than 1,000 employees.
Based on that data, the Commission concludes that the majority of
wireline firms are small under the applicable standard. However,
currently, only two entities provide DBS service, which requires a
great deal of capital for operation: DIRECTV (owned by AT&T) and DISH
Network. DIRECTV and DISH Network each report annual revenues that are
in excess of the threshold for a small business. Accordingly, the
Commission must conclude that internally developed FCC data are
persuasive, that, in general, DBS service is provided only by large
firms.
55. Wireless Telecommunications Carriers (Except Satellite). This
industry comprises establishments engaged in operating and maintaining
switching and transmission facilities to provide communications via the
airwaves. Establishments in this industry have
[[Page 39617]]
spectrum licenses and provide services using that spectrum, such as
cellular services, paging services, wireless internet access, and
wireless video services. The appropriate size standard under SBA rules
is that such a business is small if it has 1,500 or fewer employees.
For this industry, U.S. Census data for 2012 shows that there were 967
firms that operated for the entire year. Of this total, 955 firms had
fewer than 1,000 employees. Thus, under this category and the
associated size standard, the Commission estimates that the majority of
wireless telecommunications carriers (except satellite) are small
entities.
56. The Commission's own data--available in its Universal Licensing
System--indicate that, as of October 25, 2016, there are 280 Cellular
licensees that will be affected by the Commission's actions today. The
Commission does not know how many of these licensees are small, as the
Commission does not collect that information for these types of
entities. Similarly, according to internally developed Commission data,
413 carriers reported that they were engaged in the provision of
wireless telephony, including cellular service, Personal Communications
Service (PCS), and Specialized Mobile Radio (SMR) services. Of this
total, an estimated 261 have 1,500 or fewer employees and 152 have more
than 1,500 employees. Thus, using available data, the Commission
estimates that the majority of wireless firms can be considered small.
57. Broadband Personal Communications Service. The broadband
personal communications service (PCS) spectrum is divided into six
frequency blocks designated A through F, and the Commission has held
auctions for each block. The Commission initially defined a ``small
business'' for C- and F-Block licenses as an entity that has average
gross revenues of $40 million or less in the three previous calendar
years. For F-Block licenses, an additional small business size standard
for ``very small business'' was added and is defined as an entity that,
together with its affiliates, has average gross revenues of not more
than $15 million for the preceding three calendar years. These
standards defining ``small entity'', in the context of broadband PCS
auctions, have been approved by the SBA. No small businesses within the
SBA-approved small business size standards bid successfully for
licenses in Blocks A and B. There were 90 winning bidders that claimed
small business status in the first two C-Block auctions. A total of 93
bidders that claimed small business status won approximately 40 percent
of the 1,479 licenses in the first auction for the D-, E-, and F-
Blocks. On April 15, 1999, the Commission completed the reauction of
347 C-, D-, E-, and F-Block licenses in Auction No. 22. Of the 57
winning bidders in that auction, 48 claimed small business status and
won 277 licenses.
58. On January 26, 2001, the Commission completed the auction of
422 C- and F-Block Broadband PCS licenses in Auction No. 35. Of the 35
winning bidders in that auction, 29 claimed small business status.
Subsequent events concerning Auction No. 35, including judicial and
agency determinations, resulted in a total of 163 C- and F-Block
licenses being available for grant. On February 15, 2005, the
Commission completed an auction of 242 C-, D-, E-, and F-Block licenses
in Auction No. 58. Of the 24 winning bidders in that auction, 16
claimed small business status and won 156 licenses. On May 21, 2007,
the Commission completed an auction of 33 licenses in the A-, C-, and
F-Blocks in Auction No. 71. Of the 12 winning bidders in that auction,
five claimed small business status and won 18 licenses. On August 20,
2008, the Commission completed the auction of 20 C-, D-, E-, and F-
Block Broadband PCS licenses in Auction No. 78. Of the eight winning
bidders for Broadband PCS licenses in that auction, six claimed small
business status and won 14 licenses.
59. Narrowband Personal Communications Services. Two auctions of
narrowband personal communications services (PCS) licenses have been
conducted. To ensure meaningful participation of small business
entities in future auctions, the Commission has adopted a two-tiered
small business size standard in the Narrowband PCS Second Report and
Order. Through these auctions, the Commission has awarded a total of 41
licenses, 11 of which were obtained by small businesses. A ``small
business'' is an entity that, together with affiliates and controlling
interests, has average gross revenues for the three preceding years of
not more than $40 million. A ``very small business'' is an entity that,
together with affiliates and controlling interests, has average gross
revenues for the three preceding years of not more than $15 million.
The SBA has approved these small business size standards.
60. 700 MHz Guard Band Licensees. In 2000, in the 700 MHz Guard
Band Order, the Commission adopted size standards for ``small
businesses'' and ``very small businesses'' for purposes of determining
their eligibility for special provisions such as bidding credits and
installment payments. A small business in this service is an entity
that, together with its affiliates and controlling principals, has
average gross revenues not exceeding $40 million for the preceding
three years. Additionally, a very small business is an entity that,
together with its affiliates and controlling principals, has average
gross revenues that are not more than $15 million for the preceding
three years. SBA approval of these definitions is not required. An
auction of 52 Major Economic Area (``MEA'') licenses commenced on
September 6, 2000, and closed on September 21, 2000. Of the 104
licenses auctioned, 96 licenses were sold to nine bidders. Five of
these bidders were small businesses that won a total of 26 licenses. A
second auction of 700 MHz Guard Band licenses commenced on February 13,
2001, and closed on February 21, 2001. All eight of the licenses
auctioned were sold to three bidders. One of these bidders was a small
business that won a total of two licenses.
61. Lower 700 MHz Band Licenses. The Commission previously adopted
criteria for defining three groups of small businesses for purposes of
determining their eligibility for special provisions such as bidding
credits. The Commission defined a ``small business'' as an entity that,
together with its affiliates and controlling principals, has average
gross revenues not exceeding $40 million for the preceding three years.
A ``very small business'' is defined as an entity that, together with
its affiliates and controlling principals, has average gross revenues
that are not more than $15 million for the preceding three years.
Additionally, the lower 700 MHz Service had a third category of small
business status for Metropolitan/Rural Service Area (MSA/RSA)
licenses--``entrepreneur''--which is defined as an entity that,
together with its affiliates and controlling principals, has average
gross revenues that are not more than $3 million for the preceding
three years. The SBA approved these small size standards. An auction of
740 licenses (one license in each of the 734 MSAs/RSAs and one license
in each of the six Economic Area Groupings (EAGs)) commenced on August
27, 2002, and closed on September 18, 2002. Of the 740 licenses
available for auction, 484 licenses were won by 102 winning bidders.
Seventy-two of the winning bidders claimed small business, very small
business or entrepreneur status and won a total of 329 licenses. A
second auction
[[Page 39618]]
commenced on May 28, 2003, closed on June 13, 2003, and included 256
licenses: 5 EAG licenses and 476 Cellular Market Area licenses.
Seventeen winning bidders claimed small or very small business status
and won 60 licenses, and nine winning bidders claimed entrepreneur
status and won 154 licenses. On July 26, 2005, the Commission completed
an auction of five licenses in the Lower 700 MHz band (Auction No. 60).
There were three winning bidders for five licenses. All three winning
bidders claimed small business status.
62. In 2007, the Commission reexamined its rules governing the 700
MHz band in the 700 MHz Second Report and Order. An auction of 700 MHz
licenses commenced January 24, 2008, and closed on March 18, 2008,
which included: 176 Economic Area licenses in the A-Block, 734 Cellular
Market Area licenses in the B-Block, and 176 EA licenses in the E-
Block. Twenty winning bidders, claiming small business status (those
with attributable average annual gross revenues that exceed $15 million
and do not exceed $40 million for the preceding three years) won 49
licenses. Thirty-three winning bidders claiming very small business
status (those with attributable average annual gross revenues that do
not exceed $15 million for the preceding three years) won 325 licenses.
63. Upper 700 MHz Band Licenses. In the 700 MHz Second Report and
Order, the Commission revised its rules regarding Upper 700 MHz
licenses. On January 24, 2008, the Commission commenced Auction No. 73,
in which several licenses in the Upper 700 MHz band were available for
licensing: 12 Regional Economic Area Grouping licenses in the C-Block,
and one nationwide license in the D-Block. The auction concluded on
March 18, 2008, with three winning bidders claiming very small business
status (those with attributable average annual gross revenues that do
not exceed $15 million for the preceding three years) and winning five
licenses.
64. Advanced Wireless Services. AWS Services (1710-1755 MHz and
2110-2155 MHz bands (AWS-1); 1915-1920 MHz, 1995-2000 MHz, 2020-2025
MHz and 2175-2180 MHz bands (AWS-2); 2155-2175 MHz band (AWS-3)). For
the AWS-1 bands, the Commission has defined a ``small business'' as an
entity with average annual gross revenues for the preceding three years
not exceeding $40 million, and a ``very small business'' as an entity
with average annual gross revenues for the preceding three years not
exceeding $15 million. For AWS-2 and AWS-3, although the Commission
does not know for certain which entities are likely to apply for these
frequencies, the Commission notes that the AWS-1 bands are comparable
to those used for cellular service and personal communications service.
The Commission has not yet adopted size standards for the AWS-2 or AWS-
3 bands, but proposes to treat both AWS-2 and AWS-3 similarly to
broadband PCS service and AWS-1 service due to the comparable capital
requirements and other factors, such as issues involved in relocating
incumbents and developing markets, technologies, and services.
65. Broadband Radio Service and Educational Broadband Service.
Broadband Radio Service systems, previously referred to as Multipoint
Distribution Service (MDS) and Multichannel Multipoint Distribution
Service (MMDS) systems, and ``wireless cable,'' transmit video
programming to subscribers and provide two-way high-speed data
operations using the microwave frequencies of the Broadband Radio
Service (BRS) and Educational Broadband Service (EBS) (previously
referred to as the Instructional Television Fixed Service (ITFS)).
66. BRS--In connection with the 1996 BRS auction, the Commission
established a small business size standard as an entity that had annual
average gross revenues of no more than $40 million in the previous
three calendar years. The BRS auctions resulted in 67 successful
bidders obtaining licensing opportunities for 493 Basic Trading Areas
(BTAs). Of the 67 auction winners, 61 met the definition of a small
business. BRS also includes licensees of stations authorized prior to
the auction. At this time, the Commission estimates that of the 61
small business BRS auction winners, 48 remain small business licensees.
In addition to the 48 small businesses that hold BTA authorizations,
there are approximately 392 incumbent BRS licensees that are considered
small entities. After adding the number of small business auction
licensees to the number of incumbent licensees not already counted, the
Commission finds that there are currently approximately 440 BRS
licensees that are defined as small businesses under either the SBA or
the Commission's rules.
67. In 2009, the Commission conducted Auction No. 86, the sale of
78 licenses in the BRS areas. The Commission offered three levels of
bidding credits: (i) A bidder with attributed average annual gross
revenues that exceed $15 million and do not exceed $40 million for the
preceding three years (small business) received a 15 percent discount
on its winning bid; (ii) a bidder with attributed average annual gross
revenues that exceed $3 million and do not exceed $15 million for the
preceding three years (very small business) received a 25 percent
discount on its winning bid; and (iii) a bidder with attributed average
annual gross revenues that do not exceed $3 million for the preceding
three years (entrepreneur) received a 35 percent discount on its
winning bid. Auction No. 86 concluded in 2009 with the sale of 61
licenses. Of the ten winning bidders, two bidders that claimed small
business status won four licenses; one bidder that claimed very small
business status won three licenses; and two bidders that claimed
entrepreneur status won six licenses.
68. EBS--Educational Broadband Service has been included within the
broad economic census category and the SBA size standard for Wired
Telecommunications Carriers since 2007. Wired Telecommunications
Carriers are comprised of establishments primarily engaged in operating
and/or providing access to transmission facilities and infrastructure
that they own and/or lease for the transmission of voice, data, text,
sound, and video using wired telecommunications networks. Transmission
facilities may be based on a single technology or a combination of
technologies. The SBA's small business size standard for this category
is all such firms having 1,500 or fewer employees. U.S. Census data for
2012 shows that there were 3,117 firms that operated that year. Of this
total, 3,083 operated with fewer than 1,000 employees. Thus, under this
size standard, the majority of firms in this industry can be considered
small. In addition to Census Bureau data, the Commission's Universal
Licensing System indicates that as of October 2014, there are 2,206
active EBS licenses. The Commission estimates that of these 2,206
licenses, the majority are held by non-profit educational institutions
and school districts, which are by statute defined as small businesses.
69. Wireless Communications Service. This service can be used for
fixed, mobile, radiolocation, and digital audio broadcasting satellite
uses. The Commission defined ``small business'' for the wireless
communications services (WCS) auction as an entity with average gross
revenues of $40 million for each of the three preceding years, and a
``very small business'' as an entity with average gross revenues of $15
million for each of the three preceding years. The SBA has approved
these small business size standards. In the
[[Page 39619]]
Commission's auction for geographic area licenses in the WCS service
there were seven winning bidders that qualified as ``very small
business'' entities, and one that qualified as a ``small business''
entity.
70. Radio and Television Broadcasting and Wireless Communications
Equipment Manufacturing. This industry comprises establishments
primarily engaged in manufacturing radio and television broadcast and
wireless communications equipment. Examples of products made by these
establishments are: Transmitting and receiving antennas, cable
television equipment, GPS equipment, pagers, cellular phones, mobile
communications equipment, and radio and television studio and
broadcasting equipment. The SBA has established a small business size
standard for this industry of 1,250 employees or less. U.S. Census data
for 2012 shows that 841 establishments operated in this industry in
that year. Of that number, 819 establishments operated with less than
500 employees. Based on this data, the Commission concludes that a
majority of manufacturers in this industry are small.
71. Software Publishers. This industry comprises establishments
primarily engaged in computer software publishing or publishing and
reproduction. Establishments in this industry carry out operations
necessary for producing and distributing computer software, such as
designing, providing documentation, assisting in installation, and
providing support services to software purchasers. These establishments
may design, develop, and publish, or publish only. The SBA has
established a size standard for this industry of annual receipts of
$38.5 million per year. U.S. Census data for 2012 indicates that 5,079
firms operated in that year. Of that number, 4,697 firms had annual
receipts of $25 million or less. Based on that data, the Commission
concludes that a majority of firms in this industry are small.
72. NCE and Public Broadcast Stations. Non-commercial educational
and public broadcast television stations fall within the U.S. Census
Bureau's definition for Television Broadcasting. This industry
comprises establishments primarily engaged in broadcasting images
together with sound and operating television broadcasting studios and
facilities for the programming and transmission of programs to the
public. The SBA has created a small business size standard for
Television Broadcasting entities, which is such firms having $38.5
million or less in annual receipts. The 2012 Economic Census reports
that 751 firms in this category operated in that year. Of that number,
656 had annual receipts of $25,000,000 or less, 25 had annual receipts
between $25,000,000 and $49,999,999 and 70 had annual receipts of
$50,000,000 or more. Based on this data the Commission concludes that
the majority of NCEs and Public Broadcast Stations are small entities
under the applicable SBA size standard.
73. According to Commission staff review of the BIA Kelsey Inc.
Media Access Pro Television Database (BIA) as of November 16, 2017,
approximately 1,258 of the 1,378 licensed commercial television
stations (or about 91 percent) had revenues of $38.5 million or less,
and therefore these licensees qualify as small entities under the SBA
definition. The Commission also estimates that there are 395 licensed
noncommercial educational NCE television stations. Notwithstanding, the
Commission does not compile and otherwise does not have access to
information on the revenue of NCE stations that would permit it to
determine how many such stations would qualify as small entities. In
addition to licensed commercial television stations and NCEs, there are
also an estimated 2,367 low power television stations (LPTV), including
Class A stations and 3,750 TV translator stations. Given the nature of
these services, the Commission will presume that all of these entities
qualify as small entities under the above SBA small business size
standard.
74. The Commission notes, however, that in assessing whether a
business concern qualifies as small under the above definition,
business (control) affiliations must be included. The Commission's
estimate, therefore, likely overstates the number of small entities
that might be affected by the Commission's action, because the revenue
figure on which it is based does not include or aggregate revenues from
affiliated companies. Moreover, the definition of ``small business''
also requires that an entity not be dominant in its field of operation
and that the entity be independently owned and operated. The estimate
of small businesses to which rules may apply does not exclude any
television station from the definition of a small business on these
bases and is therefore over-inclusive to that extent. Further, the
Commission is unable at this time to define or quantify the criteria
that would establish whether a specific television station is dominant
in its field of operation. The Commission further notes that it is
difficult at times to assess these criteria in the context of media
entities, and therefore the Commission's estimates of small businesses
to which they apply may be over-inclusive to this extent.
5. Description of Projected Reporting, Recordkeeping, and Other
Compliance Requirements for Small Entities
75. The Order allows EAS Participants to take part in live code EAS
public safety exercises, provided that the entity conducting the test
provides notification during the test to the extent technically
feasible that there is no actual emergency and provides notice to the
public and coordinates with EAS Participants, state and local emergency
authorities, the SECC, and other entities before the test to inform the
public and other affected entities that live event codes will be used
and that no emergency is occurring. In addition, the Order allows EAS
Participants to use the EAS Attention Signal and a harmless simulation
of EAS header codes in PSAs provided by federal, state, and local
government entities, as well as NGOs. These measures will obviate
recurring costs associated with the filing of live code waiver requests
(e.g., legal, administrative, printing, and mailing costs) and will not
create any cost burdens for EAS Participants. The Order also requires
that no later than twenty-four (24) hours of an EAS Participant's
discovery (i.e., actual knowledge) that it has transmitted or otherwise
sent a false alert to the public that the it send an email to the FCC
Ops Center (at [email protected]) informing the Commission of the event
and of any details that the EAS Participant may have concerning the
event. This measure will help ensure that all alerting stakeholder have
sufficient situational awareness of a false alert to quickly respond to
and remediate the situation.
76. The Order requires EAS Participants to reject all digitally-
signed CAP-formatted EAS alerts that are invalidly signed. It further
requires EAS Participants to reject all EAS alerts that are received
with header code date/time data inconsistent with the current date and
time. Most EAS equipment deployed in the field already supports these
authentication and validation rules, but the Commission anticipates
that a small minority of EAS Participants may need to update software
to comply with these rules. Such an update should result in minimal
costs to EAS Participants, as it can be performed during a scheduled
in-version equipment software update.
[[Page 39620]]
6. Steps Taken To Minimize the Significant Economic Impact on Small
Entities, and Significant Alternatives Considered
77. The RFA requires an agency to describe any significant
alternatives that it has considered in reaching its approach, which 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 or reporting requirements under the rule for small entities;
(3) the use of performance, rather than design, standards; and (4) and
exemption from coverage of the rule, or any part thereof, for small
entities.''
78. The Commission does not expect its actions in the Order to have
a significant economic impact on small entities. The rule changes to
section 11.61 with respect to live code tests do not impose any new
requirements or new costs for small entities or other EAS Participants.
The steps taken by the Commission eliminating the waiver filing
requirement will benefit small entities by reducing the need for legal
and other staff time associated with filing a waiver, which will
translate into cost reductions and have a positive economic impact.
Thus, as an alternative to the existing process, the record supports
the Commission's conclusion that removing the need for entities to
request a waiver of the Commission's rules to conduct live code tests
will reduce costs and remove regulatory burdens for small entities as
well as other entities subject to these rules.
79. The false alert reporting rules the Commission adopts today
similarly impose minimal burdens on small entities. The reporting
requirement is triggered only upon discovery of the false alert, allows
twenty-four hours for the submission of the report and imposes no
obligation to and investigate the false report. Further, the Commission
recognizes that smaller entities often face particular challenges in
achieving authentication and validation of EAS messages due to limited
human, financial, or technical resources. Due, in part, to the
potentially significant burdens that the originally-proposed
requirements would pose, the Commission declines, at this time, to
adopt certain of the proposals and defer consideration of others. Those
the Commission adopts are unlikely to pose burdens that are not already
incurred in the normal course of business.
80. Finally, the Commission adopts implementation timeframes for
each of the Commission's rules that are intended to allow EAS
Participants to come into compliance with the Commission's rules in a
manner that balances the need for improving EAS organization and
effectiveness as soon as possible with any potential burdens that may
be imposed by adoption of the Commission's proposals.
81. The Commission concludes that the adopted mandates provide
small entities as well as other EAS Participants with a sufficient
measure of flexibility to account for technical and cost-related
concerns. The Commission has determined that implementing these
improvements to the EAS is technically feasible. In the event that
small entities face unique circumstances that restrict their ability to
comply with the Commission's rules, the Commission can address them
through the waiver process.
C. Paperwork Reduction Act Analysis
82. This document contains modified information collection
requirements subject to the Paperwork Reduction Act of 1995 (PRA),
Public Law 104-13. It will be submitted to the Office of Management and
Budget (OMB) for review under section 3507(d) of the PRA. OMB, the
general public, and other Federal agencies will be invited to comment
on the new or modified information collection requirements contained in
this proceeding. In addition, the Commission notes that pursuant to the
Small Business Paperwork Relief Act of 2002, Public Law 107-198, see 44
U.S.C. 3506(c)(4), the Commission previously sought specific comment on
how the Commission might further reduce the information collection
burden for small business concerns with fewer than 25 employees.
D. Congressional Review Act
83. The Commission will send a copy of this Order in a report to be
sent to Congress and the Government Accountability Office pursuant to
the Congressional Review Act, see U.S.C. 801(a)(1)(A).
IV. Ordering Clauses
84. Accordingly, it is ordered, pursuant to sections 1, 2, 4(i),
4(o), 301, 303(r), 303(v), 307, 309, 335, 403, 624(g), 706, and 713 of
the Communications Act of 1934, as amended, 47 U.S.C. 151, 152, 154(i),
154(o), 301, 303(r), 303(v), 307, 309, 335, 403, 544(g), 606, and 613,
as well as by sections 602(a),(b),(c), (f), 603, 604 and 606 of the
WARN Act, 47 U.S.C. 1202(a), (b), (c), (f), 1203, 1204 and 1206, and
the Twenty-First Century Communications and Video Accessibility Act of
2010, Public Law 111-260 and Public Law 111-265, that this Report and
Order is adopted.
85. It is further ordered that the rule amendments adopted herein
will become effective September 10, 2018, except that the amendments to
sections 11.33 and 11.56 will become effective August 12, 2019, and the
amendments to sections 11.45(b) and 11.61, which contain modifications
to information collection requirements that are currently approved by
the Office of Management and Budget (OMB), will become effective on the
date specified in a Commission notice published in the Federal Register
announcing their approval (which date shall not be less than 30 days
after publication of this Report and Order in the Federal Register).
86. It is further ordered that the Commission's Consumer and
Governmental Affairs Bureau, Reference Information Center, shall send a
copy of this Report and Order, including the Final Regulatory
Flexibility Analysis, to the Chief Counsel for Advocacy of the Small
Business Administration.
List of Subjects in 47 CFR Part 11
Radio, Television.
Federal Communications Commission.
Marlene H. Dortch,
Secretary.
Final Rules
For the reasons discussed in the preamble, the Federal
Communications Commission amends 47 CFR part 11 as follows:
PART 11--EMERGENCY ALERT SYSTEM (EAS)
0
1. The authority citation for part 11 continues to read as follows:
Authority: 47 U.S.C. 151, 154(i) and (o), 303(r), 544(g) and
606.
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2. Amend Sec. 11.33 by revising paragraph (a)(10) to read as follows:
Sec. 11.33 EAS Decoder.
(a) * * *
(10) Message Validity. An EAS Decoder must provide error detection
and validation of the header codes of each message to ascertain if the
message is valid. Header code comparisons may be accomplished through
the use of a bit-by-bit compare or any other error detection and
validation protocol. A header code must only be considered
[[Page 39621]]
valid when two of the three headers match exactly; the Origination
Date/Time field (JJJHHMM) is not more than 15 minutes in the future and
the expiration time (Origination Date/Time plus Valid Time TTTT) is in
the future (i.e., current time at the EAS equipment when the alert is
received is between origination time minus 15 minutes and expiration
time). Duplicate messages must not be relayed automatically.
* * * * *
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3. Revise Sec. 11.45 to read as follows:
Sec. 11.45 Prohibition of false or deceptive EAS transmissions.
(a) No person may transmit or cause to transmit the EAS codes or
Attention Signal, or a recording or simulation thereof, in any
circumstance other than in an actual National, State or Local Area
emergency or authorized test of the EAS; or as specified in Sec. Sec.
10.520(d), 11.46, and 11.61 of this chapter.
(b) No later than twenty-four (24) hours of an EAS Participant's
discovery (i.e., actual knowledge) that it has transmitted or otherwise
sent a false alert to the public, the EAS Participant send an email to
the Commission at the FCC Ops Center at [email protected], informing the
Commission of the event and of any details that the EAS Participant may
have concerning the event.
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4. Revise Sec. 11.46 to read as follows:
Sec. 11.46 EAS public service announcements.
EAS Participants may use the EAS Attention Signal and a simulation
of the EAS codes as provided by FEMA in EAS Public Service
Announcements (PSAs) (including commercially-sponsored announcements,
infomercials, or programs) provided by federal, state, and local
government entities, or non-governmental organizations, to raise public
awareness about emergency alerting. This usage is only permitted if the
PSA is presented in a non-misleading and technically harmless manner,
including with the explicit statement that the Attention Signal and EAS
code simulation are being used in the context of a PSA for the purpose
of educating the viewing or listening public about emergency alerting.
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5. Amend Sec. 11.56 by redesignating paragraph (c) as paragraph (d)
and adding new paragraph (c) to read as follows:
Sec. 11.56 Obligation to process CAP-formatted EAS messages.
* * * * *
(c) EAS Participants shall configure their systems to reject all
CAP-formatted EAS messages that include an invalid digital signature.
* * * * *
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6. Amend Sec. 11.61 by adding paragraph (a)(5) to read as follows:
Sec. 11.61 Tests of EAS procedures.
(a) * * *
(5) Live Code Tests. EAS Participants may participate in no more
than two (2) ``Live Code'' EAS Tests per calendar year that are
conducted to exercise the EAS and raise public awareness for it,
provided that the entity conducting the test:
(i) Notifies the public before the test that live event codes will
be used, but that no emergency is, in fact, occurring;
(ii) To the extent technically feasible, states in the test message
that the event is only a test;
(iii) Coordinates the test among EAS Participants and with state
and local emergency authorities, the relevant SECC (or SECCs, if the
test could affect multiple states), and first responder organizations,
such as PSAPs, police, and fire agencies); and,
(iv) Consistent with Sec. 11.51, provides in widely accessible
formats the notification to the public required by this subsection that
the test is only a test, and is not a warning about an actual
emergency.
* * * * *
[FR Doc. 2018-17096 Filed 8-9-18; 8:45 am]
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