80 FR 11328 - Implementation of the STELA Reauthorization Act of 2014

FEDERAL COMMUNICATIONS COMMISSION

Federal Register Volume 80, Issue 41 (March 3, 2015)

The Federal Communications Commission (``Commission'') amends its rules to implement certain provisions of the STELA Reauthorization Act of 2014. Collectively, those provisions: Extend to January 1, 2020 the good faith negotiation requirements applicable to multichannel video programming distributors (``MVPDs'') and television broadcast stations, and the exclusive contract prohibition applicable to such broadcast stations; prohibit same-market television broadcast stations from coordinating negotiations or negotiating on a joint basis for retransmission consent except under certain conditions; prohibit a television broadcast station from limiting the ability of an MVPD to carry into its local market television signals that are deemed ``significantly viewed'' or that otherwise are permitted to be carried by the MVPD, with certain exceptions; and eliminate the ``sweeps prohibition'' in the Communications Act of 1934, as amended (``the Act'').

[Federal Register Volume 80, Number 41 (Tuesday, March 3, 2015)]
[Rules and Regulations]
[Pages 11328-11330]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-04337]


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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Part 76

[MB Docket No. 15-37; FCC 15-21]


Implementation of the STELA Reauthorization Act of 2014

AGENCY: Federal Communications Commission.

ACTION: Final rule.

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SUMMARY: The Federal Communications Commission (``Commission'') amends 
its rules to implement certain provisions of the STELA Reauthorization 
Act of 2014. Collectively, those provisions: Extend to January 1, 2020 
the good faith negotiation requirements applicable to multichannel 
video programming distributors (``MVPDs'') and television broadcast 
stations, and the exclusive contract prohibition applicable to such 
broadcast stations; prohibit same-market television broadcast stations 
from coordinating negotiations or negotiating on a joint basis for 
retransmission consent except under certain conditions; prohibit a 
television broadcast station from limiting the ability of an MVPD to 
carry into its local market television signals that are deemed 
``significantly viewed'' or that otherwise are permitted to be carried 
by the MVPD, with certain exceptions; and eliminate the ``sweeps 
prohibition'' in the Communications Act of 1934, as amended (``the 
Act'').

DATES: Effective April 2, 2015.

FOR FURTHER INFORMATION CONTACT: Raelynn Remy, [email protected], 
Federal Communications Commission, Media Bureau, (202) 418-2936.

SUPPLEMENTARY INFORMATION: This is a summary of the Commission's Order, 
MB Docket No. 15-37, FCC 15-21, which was adopted on February 13, 2015 
and released on February 18, 2015. The full text of this document is 
available for public inspection and copying during regular business 
hours in the FCC Reference Center, Federal Communications Commission, 
445 12th Street SW., Room CY-A257, Washington, DC 20554. This document 
will also be available via ECFS at http://fjallfoss.fcc.gov/ecfs/. 
Documents will be available electronically in ASCII, Microsoft Word, 
and/or Adobe Acrobat. Alternative formats are available for people with 
disabilities (Braille, large print, electronic files, audio format), by 
sending an email to [email protected] or calling the Commission's Consumer 
and Governmental Affairs Bureau at (202) 418-0530 (voice), (202) 418-
0432 (TTY).

Paperwork Reduction Act of 1995 Analysis

    This document does not contain new or modified information 
collection requirements subject to the Paperwork Reduction Act of 1995 
(PRA), Public Law 104-13. In addition, therefore, it does not contain 
any new or modified ``information collection burden for small business 
concerns with fewer than 25 employees,'' pursuant to the Small Business 
Paperwork Relief Act of 2002, Public Law 107-198, see 44 U.S.C. 
3506(c)(4).

Document Summary

I. Introduction

    1. In this Order, we amend our rules to implement three provisions 
of the STELA Reauthorization Act of 2014 (``STELAR'').\1\ Collectively, 
those provisions: (i) Extend to January 1, 2020 the good faith 
negotiation requirements applicable to multichannel video programming 
distributors (``MVPDs'') and television broadcast stations, and the 
exclusive contract prohibition applicable to such broadcast stations; 
\2\ (ii) prohibit same-market television broadcast stations from 
coordinating negotiations or negotiating on a joint basis for 
retransmission consent except under certain conditions; \3\ (iii) 
prohibit a television broadcast station from limiting the ability of an 
MVPD to carry into its local market television signals that are deemed 
``significantly viewed'' or that otherwise are permitted to be carried 
by the MVPD, with certain exceptions; \4\ and (iv) eliminate the 
``sweeps prohibition'' in section 614(b)(9) of the Communications Act 
of 1934, as amended (``the Act'').\5\
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    \1\ See Public Law 113-200, 128 Stat. 2059 (2014). The STELAR 
was enacted on December 4, 2014 (H.R. 5728, 113th Cong.).
    \2\ See 47 U.S.C. 325(b)(3)(C) (as amended by section 101 of the 
STELAR).
    \3\ See id. (as amended by section 103(a) of the STELAR).
    \4\ See id. (as amended by section 103(b) of the STELAR).
    \5\ See 47 U.S.C. 534(b)(9) (as amended by section 105 of the 
STELAR).
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    2. The STELAR requires the Commission, among other things, to 
undertake several proceedings to adopt new rules, amend or repeal 
existing rules, and conduct analyses. This proceeding implements 
sections 101, 103 and 105 of the STELAR.\6\ We address those provisions 
in one order because their implementation entails no exercise of our 
administrative discretion and, therefore, notice and comment procedures 
are unnecessary under the ``good cause'' exception to the 
Administrative Procedure Act (``APA'').\7\ We discuss each provision, 
in turn.
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    \6\ Provisions of the STELAR that we do not implement in this 
Order will be addressed in other proceedings.
    \7\ See 5 U.S.C. 553(b)(B). See also Metzenbaum v. Federal 
Energy Regulatory Commission, 675 F.2d 1282, 1291 (D.C. Cir. 1982) 
(agency order, issued pursuant to Congressional waiver of certain 
provisions of federal law that otherwise would have governed 
construction and operation of Alaskan natural gas pipeline, was 
appropriately issued without notice and comment under the APA's 
``good cause'' exception as a nondiscretionary ministerial action); 
Komjathy v. Nat'l Transp. Safety Bd., 832 F.2d 1294, 1296-97 (D.C. 
Cir. 1987) (notice and comment is unnecessary where the regulation 
does no more than repeat, virtually verbatim, the statutory grant of 
authority), cert. denied, 486 U.S. 1057 (1988).

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[[Page 11329]]

II. Discussion

A. Section 101 of the STELAR: Extension of Sunset Dates in 
Retransmission Consent Rules

    3. We revise Sec.  76.64(b)(3)(ii) of our rules (relating to the 
retransmission consent exemption for carriage of distant network 
signals by satellite carriers), Sec.  76.64(l) (relating to the 
prohibition on exclusive retransmission consent contracts) and Sec.  
76.65(f) (relating to the expiration of the reciprocal good faith 
negotiation requirements) to reflect the new sunset dates established 
in section 101 of the STELAR. Section 101 amends section 325(b)(2)(C) 
of the Act by replacing the previous sunset date of December 31, 2014 
with a new sunset date of December 31, 2019. Section 101 also amends 
section 325(b)(3)(C) of the Act to replace the previous sunset date of 
January 1, 2015 with a new sunset date of January 1, 2020.\8\ 
Accordingly, we amend Sec. Sec.  76.64(b)(3)(ii), 76.64(l), and 
76.65(f) of our rules to reflect those new sunset dates.
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    \8\ See 47 U.S.C. 325(b)(3)(C) (as amended by section 101 of the 
STELAR) (requiring MVPDs and television broadcast stations to 
negotiate retransmission consent in good faith and prohibiting such 
stations from engaging in exclusive contracts for carriage).
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B. Section 103(a) of the STELAR: Ban on Joint Negotiation for 
Retransmission Consent

    4. We also revise Sec.  76.65(b) of our rules (setting forth 
standards for good faith negotiation) to incorporate new provisions of 
section 325 added by the STELAR. In particular, section 103(a) of the 
STELAR revises section 325 by adding new subsection 325(b)(3)(C)(iv), 
which, read as part of section 325(b)(3)(C) as a whole, requires the 
Commission to revise its retransmission consent rules:

    [to] prohibit a television broadcast station from coordinating 
negotiations or negotiating on a joint basis with another television 
broadcast station in the same local market (as defined in section 
122(j) of title 17, United States Code) to grant retransmission 
consent under this section to a [MVPD], unless such stations are 
directly or indirectly under common de jure control permitted under 
the regulations of the Commission.\9\
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    \9\ See 47 U.S.C. 325(b)(3)(C) (as amended by section 103 of the 
STELAR).

    5. In accordance with our statutory mandate in section 
325(b)(3)(C), we revise Sec.  76.65(b) of our rules to incorporate this 
new provision virtually verbatim. Specifically, we repeal Sec.  
76.65(b)(1)(viii) of our rules (governing joint negotiation of 
retransmission consent) and replace that provision with language 
implementing new section 325(b)(3)(C)(iv) of the Act. We take this 
action based on our conclusion that the prohibition on joint 
negotiation in new section 325(b)(3)(C)(iv) is broader than, and thus 
supersedes, the Commission's existing prohibition.\10\
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    \10\ For example, the prohibition on joint negotiation codified 
in Sec.  76.65(b)(1)(viii) of our existing rules applies by its 
terms only to same-market ``Top Four'' television broadcast 
stations, whereas the new statutory ban applies to all same-market 
television broadcast stations. Moreover, in contrast to the existing 
ban on joint negotiation (which permits joint negotiation of 
retransmission consent by stations that are commonly owned, operated 
or controlled as determined by the Commission's broadcast 
attribution rules), the new statutory ban permits joint negotiation 
only by stations that ``are directly or indirectly under common de 
jure control permitted under the regulations of the Commission.'' 
Compare 47 CFR 76.65(b)(1)(viii) with 47 U.S.C. 325(b)(3)(C) (as 
amended by section 103(a) of the STELAR).
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C. Section 103(b) of the STELAR: Protections for Significantly Viewed 
and Other Television Signals

    6. In addition, section 103(b) of the STELAR amends section 325 by 
adding new subsection 325(b)(3)(C)(v). Read as part of section 
325(b)(3)(C) in its entirety, that new subsection directs the 
Commission to amend its retransmission consent rules:

    [to] prohibit a television broadcast station from limiting the 
ability of a [MVPD] to carry into the local market (as defined in 
[S]ection 122(j) of title 17, United States Code) of such station a 
television signal that has been deemed significantly viewed, within 
the meaning of [S]ection 76.54 of title 47, Code of Federal 
Regulations, or any successor regulation, or any television 
broadcast signal such distributor is authorized to carry under 
[S]ection 338, 339, 340, or 614 of [the] Act, unless such stations 
are directly or indirectly under common de jure control permitted by 
the Commission.\11\
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    \11\ See 47 U.S.C. 325(b)(3)(C) (as amended by section 103 of 
the STELAR).

    7. Thus, we amend Sec.  76.65(b) of our rules by adding new 
subsection 76.65(b)(1)(ix), which incorporates the protections for 
significantly viewed and other television signals established in 
section 103(b) of the STELAR.

D. Section 105 of the STELAR

    8. We amend Sec.  76.1601 of our rules by removing the prohibition 
on deletion or repositioning of local commercial television stations by 
cable operators during periods in which major television ratings 
services measure such stations' audience size, otherwise known as the 
``sweeps prohibition.'' \12\ Section 105(a) of the STELAR amends 
section 614(b)(9) of the Act by eliminating the sweeps prohibition,\13\ 
and section 105(b) directs the Commission to conform its rules 
accordingly.\14\ Pursuant to Congress's directive in section 105(b), 
therefore, we amend our rules to eliminate Note 1 of Sec.  76.1601.
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    \12\ See 47 CFR 76.1601, Note 1.
    \13\ In particular, section 105(a) of the STELAR amends section 
614(b)(9) of the Act by striking the second sentence, which states 
that ``[n]o deletion or repositioning of a local commercial 
television station shall occur during a period in which major 
television ratings services measure the size of audiences of local 
television stations.'' 47 U.S.C. 534(b)(9).
    \14\ Section 105(b) of the STELAR provides that ``[n]ot later 
than 90 days after the date of enactment of this Act, the Commission 
shall revise [S]ection 76.1601 of its rules . . . and any note to 
such section by removing the [sweeps prohibition].'' See Public Law 
113-200, 128 Stat. 2059, 105(b) (2014).
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E. ``Good Cause'' Under Section 553(b)(B) of the APA

    9. Consistent with previous decisions, we amend our rules as set 
forth above without providing for prior public notice and comment. Our 
action here is largely ministerial because it simply effectuates new 
sunset dates or other provisions established by legislation, and 
requires no exercise of administrative discretion. For this reason, we 
conclude that prior notice and comment would serve no useful purpose 
and are unnecessary. We, therefore, find that this action comes within 
the ``good cause'' exception to the notice and comment requirements of 
the APA.\15\
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    \15\ See 5 U.S.C. 553(b)(B).
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III. Procedural Matters

A. Regulatory Flexibility Act

    10. Because we adopt this Order without notice and comment, the 
Regulatory Flexibility Act (RFA) does not apply.\16\
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    \16\ See 5 U.S.C. 603. The RFA, see 5 U.S.C. 601 et seq., has 
been amended by the Small Business Regulatory Enforcement Fairness 
Act of 1996 (SBREFA), Public Law 104-121, Title II, 110 Stat. 857 
(1996). The SBREFA was enacted as Title II of the Contract with 
America Advancement Act of 1996 (CWAAA).
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B. Paperwork Reduction Act

    11. This document does not contain any new or modified information 
collection requirements subject to the Paperwork Reduction Act of 1995 
(PRA).\17\ In addition, therefore, it does not contain any information 
collection burden for small business concerns with fewer than 25 
employees, pursuant to the Small Business Paperwork Relief Act of 
2002.\18\
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    \17\ The Paperwork Reduction Act of 1995, Public Law 104-13, 109 
Stat. 163 (1995) (codified in Chapter 35 of title 44 U.S.C.).
    \18\ The Small Business Paperwork Relief Act of 2002 (SBPRA), 
Public Law 107-198, 116 Stat. 729 (2002) (codified in Chapter 35 of 
title 44 U.S.C.); see 44 U.S.C. 3506(c)(4).

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[[Page 11330]]

C. Congressional Review Act

    12. 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.\19\
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    \19\ See 5 U.S.C. 801(a)(1)(A).
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D. Additional Information

    13. For more information, contact Raelynn Remy, 
[email protected], Policy Division, Media Bureau, (202) 418-2936.

IV. Ordering Clauses

    14. Accordingly, IT IS ORDERED that, pursuant to the authority 
found in sections 4(i), 4(j), 303(r), 325 and 614 of the Communications 
Act of 1934, as amended, 47 U.S.C. 154(i), 154(j), 303(r), 325, and 
534, and sections 101, 103 and 105 of the STELA Reauthorization Act of 
2014, Public Law 113-200, 128 Stat. 2059 (2014), this Order IS ADOPTED 
and the Commission's rules ARE HEREBY AMENDED as set forth below.
    15. IT IS FURTHER ORDERED that, pursuant to the authority found in 
sections 4(i), 4(j), 303(r), 325 and 614 of the Communications Act of 
1934, as amended, 47 U.S.C. 154(i), 154(j), 303(r), 325, and 534, and 
sections 101, 103 and 105 of the STELA Reauthorization Act of 2014, 
Public Law 113-200, 128 Stat. 2059 (2014), the rules SHALL BE EFFECTIVE 
thirty (30) days after the date of publication in the Federal Register.
    16. IT IS FURTHER ORDERED that the Commission shall send a copy of 
this Order in MB Docket No. 15-37 in a report to be sent to Congress 
and the Government Accountability Office pursuant to the Congressional 
Review Act, see 5 U.S.C. 801(a)(1)(A).

List of Subjects in 47 CFR Part 76

    Cable 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 76 as follows:

PART 76--MULTICHANNEL VIDEO AND CABLE TELEVISION SERVICE

0
1. Amend the authority citation for part 76 to read as follows:

    Authority: 47 U.S.C. 151, 152, 153, 154, 301, 302, 302a, 303, 
303a, 307, 308, 309, 312, 315, 317, 325, 338, 339, 340, 341, 503, 
521, 522, 531, 532, 534, 535, 536, 537, 543, 544, 544a, 545, 548, 
549, 552, 554, 556, 558, 560, 561, 571, 572, 573.

0
2. Section 76.64 is amended by revising paragraphs (b)(3)(ii) and (l) 
to read as follows:


Sec.  76.64  Retransmission consent.

* * * * *
    (b) * * *
    (3) * * *
    (ii) The broadcast station is owned or operated by, or affiliated 
with a broadcasting network, and the household receiving the signal is 
an unserved household. This paragraph shall terminate at midnight on 
December 31, 2019, provided that if Congress further extends this date, 
the rules remain in effect until the statutory authorization expires.
* * * * *
    (l) Exclusive retransmission consent agreements are prohibited. No 
television broadcast station shall make or negotiate any agreement with 
one multichannel video programming distributor for carriage to the 
exclusion of other multichannel video programming distributors. This 
paragraph shall terminate at midnight on January 1, 2020, provided that 
if Congress further extends this date, the rules remain in effect until 
the statutory authorization expires.
* * * * *

0
3. Section 76.65 is amended by revising paragraph (b)(1)(viii) and by 
adding paragraph (b)(1)(ix) and revising paragraph (f) to read as 
follows:


Sec.  76.65  Good faith and exclusive retransmission consent 
complaints.

* * * * *
    (b) * * *
    (1) * * *
    (viii) Coordination of negotiations or negotiation on a joint basis 
by two or more television broadcast stations in the same local market 
(as defined in 17 U.S.C. 122(j)) to grant retransmission consent to a 
multichannel video programming distributor, unless such stations are 
directly or indirectly under common de jure control permitted under the 
regulations of the Commission.
    (ix) The imposition by a television broadcast station of 
limitations on the ability of a multichannel video programming 
distributor to carry into the local market (as defined in 17 U.S.C. 
122(j)) of such station a television signal that has been deemed 
significantly viewed, within the meaning of Sec.  76.54 of this part, 
or any successor regulation, or any other television broadcast signal 
such distributor is authorized to carry under 47 U.S.C. 338, 339, 340 
or 534, unless such stations are directly or indirectly under common de 
jure control permitted by the Commission.
* * * * *
    (f) Termination of rules. This section shall terminate at midnight 
on January 1, 2020, provided that if Congress further extends this 
date, the rules remain in effect until the statutory authorization 
expires.


Sec.  76.1601  [Amended].

0
4. Amend Sec.  76.1601 by removing Note 1.

[FR Doc. 2015-04337 Filed 3-2-15; 8:45 am]
BILLING CODE 6712-01-P