82 FR 21127 - Noncommercial Educational Station Fundraising for Third-Party Non-Profit Organizations
FEDERAL COMMUNICATIONS COMMISSION Federal Register Volume 82, Issue 86 (May 5, 2017)
Federal Register Volume 82, Issue 86 (May 5, 2017)
| Page Range | 21127-21136 | |
| FR Document | 2017-09002 |
[Federal Register Volume 82, Number 86 (Friday, May 5, 2017)] [Rules and Regulations] [Pages 21127-21136] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2017-09002] ----------------------------------------------------------------------- FEDERAL COMMUNICATIONS COMMISSION 47 CFR Part 73 [MB Docket No. 12-106; FCC 17-41] Noncommercial Educational Station Fundraising for Third-Party Non-Profit Organizations AGENCY: Federal Communications Commission. ACTION: Final rule. ----------------------------------------------------------------------- SUMMARY: In this document, the Commission revises its rules to allow noncommercial educational (NCE) broadcast stations to conduct limited on-air fundraising activities that interrupt regular programming for the benefit of third-party non-profit organizations. Permitting NCE stations to conduct third-party fundraising on a limited basis will serve the public interest by enabling NCE stations to support charities and other non-profit organizations in their fundraising efforts for worthy causes without undermining the noncommercial nature of NCE stations or their primary function of serving their communities of license through educational programming. DATES: Effective July 5, 2017, except for the amendments to Sec. Sec. 73.503(e)(1), 73.621(f)(1), and 73.3527(e)(14), which contain new or modified information collection requirements that require approval by the Office of Management and Budget (OMB) under the Paperwork Reduction Act (PRA) and will become effective after the Commission publishes [[Page 21128]] a document in the Federal Register announcing such approval and the relevant effective date. FOR FURTHER INFORMATION CONTACT: For additional information, contact Kathy Berthot, [email protected], Media Bureau, Policy Division, at (202) 418-7454. For additional information concerning the PRA information collection requirements contained in this document, contact Cathy Williams, Federal Communications Commission, at (202) 418-2918, or via email [email protected]. SUPPLEMENTARY INFORMATION: This is a summary of the Commission's Report and Order, FCC 17-41, adopted and released on April 20, 2017. The full text is available for public inspection and copying during regular business hours in the FCC Reference Center, Federal Communications Commission, 445 12th Street SW., CY-A257, Washington, DC 20554. This document will also be available via ECFS (http://www.fcc.gov/cgb/ecfs/ ). Documents will be available electronically in ASCII, Word 97, 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 contains new or modified information collection requirements. The Commission, as part of its continuing effort to reduce paperwork burdens, will invite the general public and the OMB to comment on the information collection requirements contained in this document in a separate Federal Register Notice, as required by the Paperwork Reduction Act of 1995, Public Law 104-13, see 44 U.S.C. 3507. In addition, pursuant to the Small Business Paperwork Relief Act of 2002, Public Law 107-198, see 44 U.S.C. 3506(c)(4), we previously sought specific comment on how we might further reduce the information collection burden for small business concerns with fewer than 25 employees. Congressional Review Act: The Commission will send a copy of this Report and Order to Congress and the Government Accountability Office pursuant to the Congressional Review Act, 5 U.S.C. 801(a)(1)(A). Synopsis I. Introduction 1. In this Report and Order, we revise our rules to allow NCE broadcast stations to conduct limited on-air fundraising activities that interrupt regular programming for the benefit of third-party non- profit organizations (hereafter, ``third-party fundraising''). Relaxing our longstanding third-party fundraising restrictions will serve the public interest by enabling NCE stations to support charities and other non-profit organizations in their fundraising efforts for worthy causes. Third-party fundraising programs may also help to raise public awareness about important topics, such as poverty, health care, and humanitarian issues. We conclude that permitting NCE stations to conduct third-party fundraising on a limited basis will not undermine the noncommercial nature of NCE stations or their primary function of serving their communities of license through educational programming. II. Background 2. Under Section 399B of the Communications Act, 47 U.S.C. 399B, NCE stations are prohibited from broadcasting ``advertisements,'' defined as any message or other programming material which is broadcast or otherwise transmitted in exchange for any remuneration, and which is intended-- (1) to promote any service, facility, or product offered by any person who is engaged in such offering for profit; (2) to express the views of any person with respect to any matter of public importance or interest; or (3) to support or oppose any candidate for political office. Further, pursuant to Sec. Sec. 73.503(d) and 73.621(e) of the Commission's rules, an NCE station may not conduct fundraising activities that substantially alter or suspend regular programming and are designed to benefit any entity other than the station itself. ``Regular programming'' includes programming that ``the public broadcaster ordinarily carries, but does not encompass those fundraising activities that suspend or alter their normal programming fare.'' The third-party fundraising restrictions reflect the concern that ``educational stations are licensed to provide a noncommercial broadcast service, not to serve as a fund-raising operation for other entities by broadcasting material that is `akin to regular advertising.' '' 3. The Commission has granted waivers of Sec. Sec. 73.503(d) and 73.621(e) in extraordinary circumstances. For example, in 1992, the former Mass Media Bureau granted a waiver of Sec. Sec. 73.503(d) and 73.621(e) to the licensee of an NCE radio station and an NCE television station in West Palm Beach, Florida, following Hurricane Andrew. The stations proposed to broadcast a two-hour simulcast along with four area commercial television stations to raise funds and donations and provide information for the hurricane relief effort. The staff granted the waiver in recognition of the catastrophic events that had occurred, the stations' unique ability to serve the area affected by the disaster, and the limited length of the program. The Commission also has granted waivers to permit fundraising for other singular catastrophic events, such as Hurricanes Katrina and Sandy, the September 11, 2001 terrorist attacks, the January 2005 tsunami in Southeast Asia, and the January 2010 earthquake in Haiti. More recently, the Commission established informal procedures through which NCE licensees could request Commission approval to conduct fundraising to aid the Moore, Oklahoma area tornado relief efforts, noting that it has granted waivers of Sec. 73.503(d) for ``fundraising appeals to support relief efforts following disasters of particular uniqueness or magnitude'' and that such waivers ``have been issued for a specific fundraising program or programs, or for sustained station appeals for periods which generally do not exceed several days.'' In contrast, Commission staff has denied waiver requests where the proposed fundraising occurred annually to address ongoing needs and was not limited to a specific one-time problem. 4. In June 2011, a working group including Commission staff, scholars, and consultants released the INC Report, a comprehensive report on the state of the media landscape. The INC Report discussed both the need to empower citizens to ensure that broadcasters serve their communities in exchange for the use of public spectrum and the need to remove unnecessary burdens on broadcasters who aim to serve their communities. Citing comments from the National Religious Broadcasters (NRB), the INC Report recommended that the Commission consider affording noncommercial broadcasters more flexibility by allowing NCE stations that are not grantees of the Corporation for Public Broadcasting (CPB) to spend up to one percent of their annual airtime doing fundraising for charities and other third-party non- profit organizations. In order to be eligible for CPB funding, an NCE station would have to devote the substantial majority of its daily total programming hours broadcast on all of its channels to CPB- qualified programming, which is defined as ``general audience programming that serves demonstrated community needs of an educational, informational and [[Page 21129]] cultural nature.'' The INC Report noted that ``[i]n some cases having local charities on the air can be a useful way of informing residents about problems in their communities'' and ``can help [NCE] stations achieve their public service or religious missions.'' 5. On April 25, 2012, in response to the recommendations in the INC Report, the Commission adopted a Notice of Proposed Rulemaking seeking comment on whether to allow NCE stations to conduct third-party fundraising. The Commission received 23 comments and seven replies. NRB and all of the religious broadcasters that filed comments favor allowing NCE stations to conduct third-party fundraising. Commenters representing secular NCE broadcasters, including National Public Radio (NPR), Public Broadcasting Service and Association for Public Television Stations (PBS/APTS), and university and college NCE stations, oppose relaxation of the third-party fundraising restrictions. III. Discussion A. Relaxation of Third-Party Fundraising Restrictions 6. We relax the third-party fundraising restrictions to allow NCE stations to conduct limited on-air fundraising activities that interrupt regular programming for the benefit of third-party non-profit organizations. Such relief will provide NCE stations greater flexibility to undertake fundraising for third-party non-profit organizations. Under the current rules, program-length fundraising for third-party non-profit organizations is prohibited (even if regularly scheduled) because such programming is considered to suspend ``regular programming.'' Under the rules we adopt today, NCE stations will be able to conduct fundraising activities that alter or suspend regular programming--including program-length fundraising activities--at their discretion, as long as the fundraising programs do not exceed the one- percent cap discussed below. We conclude that providing NCE stations the flexibility to engage in limited fundraising for charities and other third-party non-profit organizations will benefit the public interest. Third-party fundraising programs may enhance the educational nature of NCE stations by educating the public about the social needs and charitable causes supported by non-profit organizations. For example, a fundraising program for a breast cancer charity could help to educate the station's audience about early detection and support services, and a fundraising program for a child poverty relief organization could serve to educate the stations' listeners about the needs of children around the world who suffer in extreme poverty. Non- profit organizations may be better able to address their charitable missions with the financial support received from the NCE stations' audiences. Some of this financial support may directly benefit NCE stations' local communities. Third-party fundraising may also help to lessen the financial burden on governmental entities that address social needs through appropriations from public funds. 7. We further conclude that allowing NCE stations to conduct limited third-party fundraising will not undermine the noncommercial broadcasting service, as suggested by some commenters. The longstanding third-party fundraising restrictions reflect concerns that any promotional or fundraising activities by NCE stations must not adversely affect the educational programming mission or noncommercial character of these stations. Nevertheless, we conclude that a blanket prohibition on third-party fundraising that interrupts regular programming is no longer necessary to preserve NCE stations' noncommercial nature and ensure that NCE stations remain focused on their primary function of providing educational programming to their communities of license. The Commission's experience in granting waivers to allow NCE stations to conduct fundraising for disaster relief efforts has demonstrated that NCE stations can conduct limited third- party fundraising without compromising their noncommercial nature and the valuable program service they provide to the public. The public has responded enthusiastically to these disaster relief fundraising activities, and there is no evidence in the record before us that these fundraising activities have altered the public's perception of noncommercial broadcasting. Accordingly, we find that it is appropriate to allow NCE stations to conduct third-party fundraising on a limited basis. 8. We disagree with assertions that the success of the existing waiver process demonstrates that changes to the rules are unnecessary. As discussed above, we have determined that the public interest will be served by relaxing our third-party fundraising restrictions to allow NCE stations to conduct limited third-party fundraising activities unrelated to relief efforts for singular catastrophic events. The waiver process is intended to provide relief in extraordinary circumstances, and is not suitable for the more routine third-party fundraising activities that we address in this proceeding. We likewise reject proposals that we expand the existing waiver process to allow NCE stations to seek waivers to conduct third-party fundraising activities that are not connected to specific disasters. We think that it would impose an unnecessary burden on both NCE licensees and Commission staff to require NCE licensees to seek waivers each time they want to conduct such routine third-party fundraising. 9. We are also not persuaded by arguments that relaxing the third- party fundraising restrictions will adversely affect the noncommercial broadcasting service by reducing the amount of airtime dedicated to educational, instructional, and cultural programming; lessening the appeal of NCE stations to their audiences; or jeopardizing fundraising for NCE stations' own operations. First and foremost, we emphasize that the choice to conduct third-party fundraising will be entirely voluntary on the part of NCE stations. NCE stations that do not wish to engage in third-party fundraising are not required to do so. Thus, NCE stations concerned that airing third-party fundraising programs will jeopardize fundraising for their own operations can simply choose not to engage in such third-party fundraising. Additionally, we have determined that third-party fundraising programs may enhance the educational nature of NCE stations in some situations by raising public awareness about social needs and charitable causes supported by non- profit organizations. Further, as we explain below, we are limiting the amount of time that NCE stations can spend on third-party fundraising that interrupts regular programming to one percent of their total annual airtime. We believe that the one-percent annual limit strikes the proper balance between providing NCE stations some flexibility to support their fundraising missions and ensuring that their third-party fundraising activities do not take away from their primary function of providing noncommercial, educational programming to their local communities. 10. We disagree with assertions that third-party fundraising will change the public's perception of noncommercial broadcasting by causing the public to view the ``business'' of NCE stations as charitable fundraising, which could harm all NCE stations, even those that do not change their on-air practices. NCE stations that choose to engage in third-party fundraising will continue to spend the vast majority of their time-- [[Page 21130]] at least 99%, if not more--providing noncommercial, educational programming to their audiences. We do not believe that allowing NCE stations to allot up to one percent of their total annual airtime to third-party fundraising will significantly alter the public's perception of noncommercial broadcasting. Nor do we believe that third- party fundraising will weaken the public's confidence in the editorial independence of NCE stations or increase the potential for third-party organizations to influence programming decisions. As NRB points out, NCE stations are already permitted to air sponsorship and underwriting announcements from both non-profit groups and commercial businesses. Commenters have offered no evidence that such promotional announcements have eroded the public's confidence in the editorial independence of NCE stations. 11. Some commenters assert that relaxation of the third-party fundraising restrictions will subject NCE stations to undue pressure from affiliated or influential parties--such as universities, colleges, and other institutions that hold the stations' licenses, politically powerful persons, and foundations that provide underwriting contributions to stations--that may seek to use the station to raise funds for their own discrete interests, or cause NCE stations to be inundated with fundraising requests from local non-profits. To the extent that these commenters raise concerns that a university, college, or other institutional licensee may apply pressure to its licensed station to engage in third-party fundraising, we note that NCE stations can take steps to preempt unwanted fundraising requests from licensees and other non-profit organizations by, for example, announcing publicly their reasons for not airing routine third-party fundraising drives. 12. Exemption From Third-Party Fundraising Rule for CPB-Funded NCE Stations. Although we conclude that the public interest will be served by providing NCE stations the flexibility to conduct third-party fundraising, we recognize that some NCE stations claim that this new fundraising latitude may pose challenges for those stations that have no interest in participating in third-party fundraising. The record reflects that most NCE stations that oppose third-party fundraising are CPB-funded stations. Indeed, all but one CPB-funded station that filed comments opposed relaxation of the rule. Accordingly, because CPB- funded stations generally do not want this added flexibility, we are exempting all CPB-funded NCE stations from the new rule authorizing NCE stations to conduct on-air fundraising for third-party non-profit organizations that interrupts regular programming. B. Limitations on Eligible Beneficiaries of Third-Party Fundraising 13. We limit the class of entities for which NCE stations may conduct third-party fundraising to entities that are recognized as tax exempt, non-profit organizations under Section 501(c)(3) of the Internal Revenue Code, 26 U.S.C. 501(c)(3). Section 501(c)(3) exempts from federal income taxes corporations, foundations, or other organizations that are organized and operated exclusively for religious, charitable, scientific, educational, or certain other purposes, where no part of the net earnings of the organization inures to the benefit of any private shareholder or individual. NRB and other commenters overwhelmingly support limiting eligibility for third-party fundraising to Section 501(c)(3) organizations. We agree with commenters that this limitation will provide NCE stations certainty that third-party organizations that benefit from on-air fundraising are bona fide non-profits. 14. Two commenters suggest that NCE stations should be allowed to undertake fundraising for any organization that has qualified as a bona fide non-profit organization in any State or pursuant to any section of the Internal Revenue Code relating to non-profit organizations. These commenters assert that not all bona fide non-profit organizations choose to apply to be certified as tax exempt under the Internal Revenue Code and that there are many bona fide non-profit, tax exempt organizations, such as veterans organizations and civic leagues, that are not qualified under Section 501(c)(3), but are covered under other sections of the Internal Revenue Code. We acknowledge that there are many bona fide non-profit organizations that are not qualified as tax exempt, non-profit organizations under Section 501(c)(3). Nevertheless, we conclude that it is appropriate to limit eligibility for third-party fundraising under our rules to Section 501(c)(3) organizations. We think it would be unworkable to have the laws of 50 different States governing the types of non-profit organizations that may be the beneficiaries of third-party fundraising. 15. Moreover, unlike non-profit organizations certified under other sections of the Internal Revenue Code, Section 501(c)(3) organizations are strictly prohibited from supporting or opposing candidates for political office and are subject to limits on lobbying. Thus, limiting eligible beneficiaries to Section 501(c)(3) organizations dovetails well with Section 399B's prohibition on paid political advertising on NCE stations. This prohibition reflects Congress's concern that paid political advertising could alter the unique noncommercial, educational nature of public broadcasting. We are similarly concerned that allowing NCE stations to raise funds for non-profit organizations that support or oppose political candidates or spend a substantial part of their time engaged in lobbying activities could alter the noncommercial, educational nature of NCE stations. We are also concerned that an NCE station's audience may perceive the station's efforts to raise funds for such an organization as a tacit endorsement of that organization's views, which could alter the public's perception of noncommercial broadcasting. Therefore, we conclude that it is appropriate to limit the eligible beneficiaries of third-party fundraising to Section 501(c)(3) organizations. 16. We will not limit eligible beneficiaries of third-party fundraising to local non-profit organizations. The Commission sought comment in the NPRM on whether it would further localism to limit NCE stations to soliciting donations for local non-profit organizations. After reviewing the comments, however, we are not convinced that localism would benefit significantly from such a limitation. Several commenters point out that there are many national non-profit organizations (some of which have local chapters and some of which do not) that provide critical support to local communities. Educational Media Foundation (EMF) notes, in this regard, that a disaster that directly impacts the audience of an NCE station may be best addressed by a national organization that does not have a local chapter in the community of license. Further, we agree with commenters that it may be difficult to distinguish between ``local'' and ``non-local'' organizations where, for example, a non-profit organization has local, national, and international components. Additionally, commenters observe that limiting eligible beneficiaries to local non-profit organizations may ignore the preferences of NCE station audiences. Northwestern College states that it conducted a survey of its listener advisory panels in five of its markets to solicit feedback on how the panel members feel about providing financial aid to less fortunate individuals facing difficult circumstances both at home [[Page 21131]] and abroad. Over 65% of the 1,200 respondents indicated that they want to be informed about the needs of poor people regardless of where they live, over 44% indicated that they are willing to respond financially to help worthy causes both in the United States and internationally, and 26% indicated that awareness of problems in other countries makes them more likely to help those in their own communities. Accordingly, we will afford NCE stations the discretion to raise funds for both local and non-local non-profit organizations. While we are not limiting the beneficiaries of third-party fundraising to local non-profit groups, we note that many NCE stations already have relationships with non-profit groups in their local communities and we expect that NCE stations may be highly motivated to support local non-profits. 17. We also decline to limit eligible beneficiaries of an NCE station's third-party fundraising to non-profit organizations that are unaffiliated with the station. The NPRM asked for comment on whether to limit fundraising on behalf of third parties to unaffiliated third parties, given that third-party fundraising on behalf of affiliated entities may restrict an NCE station's ability to conduct fundraising for local non-profit organizations. As discussed above, we have determined that it will not significantly further localism to limit NCE stations to fundraising for local non-profit organizations. Thus, we think it is unnecessary to limit third-party fundraising to unaffiliated entities to ensure that NCE stations are able to fundraise for local non-profit groups. C. Annual Limit on Third-Party Fundraising 18. We will allow NCE broadcasters to spend up to one percent of their total annual airtime conducting third-party fundraising. NRB asserts that a one-percent annual limit provides adequate flexibility to NCE stations, explaining that NCE licensees ``will be reluctant to frustrate their audiences with excessive or demanding appeals for third-party non-profits, particularly when their own stations rely on donations from their [audiences] in order to operate.'' We agree with NRB and other commenters that a one-percent annual limit will strike an appropriate balance between allowing NCE stations the flexibility to support the fundraising efforts of third-party non-profit organizations and ensuring that third-party fundraising does not undermine the noncommercial nature of the participating stations and divert them from their primary function of providing educational programming to their communities of license. A one-percent annual limit--which equates to approximately 88 hours annually or 1.7 hours weekly for stations on the air 24 hours a day--will afford NCE stations flexibility to conduct third-party fundraising, while also ensuring that NCE stations do not frustrate their audiences with excessive fundraising appeals or divert stations from primary mission of providing educational programming to their communities. We reject proposals that we adopt a ten-percent annual limit on third-party fundraising, or leave it entirely up to NCE stations to decide how much of their airtime to devote to third-party fundraising. We share NPR's concern that a ten-percent annual limit would represent a significant portion of a station's annual program schedule and could further erode the distinction between NCE stations and their commercial counterparts. 19. We recognize that an NCE station's total annual airtime may vary slightly from year to year and that it may be difficult for some stations to determine in advance precisely how many hours they will operate in a given year. Therefore, as suggested by NRB, we will allow NCE stations that engage in third-party fundraising to use the prior year's total airtime for purposes of determining how many hours constitute one percent of their total annual airtime. For example, an NCE station that wishes to devote one percent of its airtime in 2017 to third-party fundraising may use its total annual airtime for 2016 in calculating the one percent cap. Furthermore, with respect to NCE stations that multicast programming on two or more separate channels, we will apply the one-percent annual limit separately to each individual programming stream. Thus, an NCE station with three programming streams may spend up to one percent of the total annual airtime of each stream airing third-party fundraising programming on that stream. We will not, however, allow NCE stations with multiple programming streams to aggregate their total hours of programming from all of their streams and allocate their fundraising activity between and among streams or on a single program stream at their discretion, as proposed by one commenter. As discussed above, we believe that the one- percent annual limit is important to ensuring that third-party fundraising activities do not undermine the noncommercial character of NCE stations, and including more fundraising on a particular stream would undermine that goal. 20. We will retain our long-standing waiver process to permit NCE stations to conduct time-limited on-air fundraising for specific disasters and other singular catastrophic events, such as hurricanes and tornadoes, as suggested by commenters. Since such events occur only rarely, it will not burden Commission staff to retain the existing waiver process for such events for all NCE stations, both exempt and non-exempt. This will enable CPB-funded stations that are exempt from the new rule to conduct third-party fundraising for disaster relief efforts by seeking a waiver as they have done in the past. Non-exempt stations may use the same long-standing process if they wish to conduct third-party fundraising beyond their one-percent annual limit, but the standard will remain the same. This approach will ensure that if a disaster occurs after a non-exempt station reaches its one-percent annual limit, the station would still be able to seek a waiver to raise funds on-air to support these efforts. 21. We decline to adopt any general limits on the duration of a specific fundraising program or on a discrete fundraising effort. We think it is unlikely that NCE licensees will risk alienating their audiences by interrupting their regular programming for an extended duration to conduct third-party fundraising. Thus, we find it is unnecessary to adopt durational limits on such fundraising programs. D. Audience Disclosures 22. We require NCE stations that interrupt regular programming to conduct third-party fundraising to air audience disclosures that clearly state that the fundraiser is not for the benefit of the station itself and identify the non-profit organization intended to benefit from the fundraising. Most commenters that address this issue support an audience disclosure requirement, acknowledging that it will decrease the likelihood of confusion on the part of station audiences as to whether the fundraising is intended to benefit the station or another entity and as to the identity of the entity for which the fundraising is being conducted. Commenters offer a range of suggestions as to the details and frequency of the audience disclosures. We adopt NRB's proposed approach and require that NCE stations make disclosures at the beginning and the end of the fundraising program and at least once during each hour of the program. We will not require NCE stations to use any particular language in the disclosure, but the disclosure must clearly state that the fundraiser is not for the benefit of [[Page 21132]] the station itself and specifically identify the non-profit organization for which the fundraising is being conducted. As NRB suggests, an NCE station may include more detailed information--such as a description of the non-profit entity and any special project or purpose for which the funds are being raised--on the station's Web site and invite the audience to access that information. 23. One commenter opposes the audience disclosure requirement, arguing that it ``would seem obvious that any appeal for funds . . . will reveal the identity of the party soliciting the donation.'' We disagree. Given that NCE stations frequently conduct fundraising to support their own operations and programming, we believe that audience confusion could arise, particularly where there is an affiliation between an NCE station and the non-profit organization for which the fundraising is being conducted. Accordingly, we conclude that an audience disclosure requirement is warranted to ensure that the beneficiary of the fundraising is clearly identified and avoid the potential for audience confusion. We further find that this audience disclosure requirement will not impose a significant burden on NCE stations as it simply requires a statement that the fundraising is not for the stations and identification of the organization that will receive the funds. E. Reimbursement of Expenses 24. We allow NCE stations to accept reimbursement of expenses incurred in conducting third-party fundraising activities or airing third-party fundraising programs. Expenses for which reimbursement may be accepted include expenses incurred by an NCE station in producing third-party programming and the station's operating costs in connection with the broadcast of third-party fundraising programming. This is consistent with Section 399B(b)(1) of the Act, 47 U.S.C. 399B(b)(1), which allows ``public broadcast station[s] . . . to engage in the offering of services, facilities, or products in exchange for remuneration,'' except that such stations may not make their facilities available for the broadcast of any advertisements. We decline, however, to allow NCE stations to receive ``additional consideration'' in exchange for conducting or airing third-party fundraising programs. Allowing NCE stations to receive additional consideration for third- party fundraising activities could create the perception that NCE stations are engaging in commercial activity and airing programming akin to advertising, thus undermining their noncommercial, educational mission. It also could mislead fundraising contributors, who might assume that their donations are being used exclusively to advance the mission of the fundraiser. Finally, as acknowledged by NRB, our rules permit an NCE station to broadcast programming furnished by third parties only ``if no other consideration than the furnishing of the program and the costs incidental to its production and broadcast are received by the licensee.'' We decline NRB's request to create a distinction between ``regular `programming' '' and ``special fundraising activities by NCE stations for a third-party non-profit group,'' with the latter not subject to the prohibition on receiving additional consideration. We find that the policy rationale for prohibiting additional consideration in the case of regular programming, i.e., that such consideration could undermine the noncommercial, educational character of public broadcast stations, applies equally to third party fundraising activities and programs. F. Public File Requirement and Other Matters 25. We do not require NCE stations that participate in third-party fundraising that interrupts regular programming to submit reports to the Commission detailing their fundraising activities, but will instead require such stations to include appropriate information on their fundraising activities in their public inspection files. Specifically, we require NCE stations that conduct third-party fundraising to place in their public files, on a quarterly basis, the following information for each third-party fundraising program or activity: The date, time, and duration of the fundraiser; the type of fundraising activity; the name of the non-profit organization benefitted by the fundraiser; a brief description of the specific cause or project, if any, supported by the fundraiser; and, to the extent that the NCE station participated in tallying or receiving any funds for the non-profit group, an approximation of the total funds raised. NCE stations that do not conduct any third-party fundraising in a given quarter will not be required to include any fundraising information in their public file for that quarter. A number of commenters raised concerns that a reporting requirement would impose unnecessary burdens on NCE licensees. NRB and other commenters support a public file requirement. We conclude that the more modest approach we adopt here will provide transparency regarding NCE stations' third-party fundraising activities to the stations' audiences, while minimizing any burdens on NCE stations. We also conclude that it is unnecessary to require NCE licensees to certify compliance with the annual limit and other restrictions on third-party fundraising in their license renewal applications. 26. Additionally, we do not require NCE stations to locally produce all third-party fundraising programs and conduct all third-party fundraising activities themselves, including collecting and distributing the funds to the non-profit entity. We agree with commenters who argue that requiring NCE stations to locally produce third-party fundraising programs may be unnecessarily burdensome and inefficient. Further, we are not convinced that requiring local production of third-party fundraising activities is necessary to promote localism. As EMF points out, fundraising is not inherently local, but instead can have a regional, national, or worldwide message and still serve the needs of local communities. We also note that NCE stations are permitted under the Commission's rules to air programming that is not locally produced. Indeed, the Commission has consistently found that non-locally produced programming can serve the needs of a community. Moreover, we are unpersuaded by NPR's argument that allowing outside entities to independently produce fundraising appeals and handle the collection of funds could ``fuel the perception that the station lacks editorial independence and that its airtime is being leased to the highest bidder.'' As noted above, NCE stations are already permitted to air non-locally produced programming, and NPR does not suggest that the broadcast of such programming has created a perception that NCE stations lack editorial independence. We do not believe that allowing NCE stations to use up to one percent of their total annual airtime for non-locally produced third-party fundraising will cause the public to lose confidence in the stations' editorial independence. 27. Finally, we will not require NCE stations that want to participate in third-party fundraising to affirmatively ``opt in'' by filing a letter or notification with the Commission. We conclude that there would be little benefit to non-profit organizations from opt-in notifications, as such organizations are more likely to seek out fundraising partners based on existing relationships with NCE stations than by perusing notifications filed with the Commission. [[Page 21133]] IV. Procedural Matters A. Final Regulatory Flexibility Act Analysis 28. As required by the Regulatory Flexibility Act of 1980, as amended (RFA), the Initial Regulatory Flexibility Analysis (IRFA) was incorporated into the Notice of Proposed Rulemaking (NPRM) released in April 2012 in this proceeding. The Federal Communications Commission (Commission) sought written public comment on the proposals in the NPRM, including comment on the IRFA. The Commission received no comments on the IRFA. This Final Regulatory Flexibility Analysis (FRFA) conforms to the RFA. B. Need for, and Objectives of, the Report and Order 29. Pursuant to Sec. Sec. 73.503(d) and 73.621(e) of the Commission's rules, a noncommercial educational (NCE) broadcast station may not conduct fundraising activities that substantially alter or suspend regular programming and are designed to benefit any entity other than the station itself. ``Regular programming'' includes programming that ``the public broadcaster ordinarily carries, but does not encompass those fundraising activities that suspend or alter their normal programming fare.'' The third-party fundraising restrictions reflect the concern that ``educational stations are licensed to provide a noncommercial broadcast service, not to serve as a fund-raising operation for other entities by broadcasting material that is `akin to regular advertising.' '' The NPRM sought comment on whether and under what circumstances to NCE stations should be allowed to conduct on-air fundraising activities that interrupt regular programming for the benefit of charities and other third-party non-profit organizations. 30. The Report and Order revises the rules to allow NCE stations to conduct limited on-air fundraising activities that interrupt regular programming for the benefit of third-party non-profit organizations. The Report and Order finds that relaxing the longstanding third-party fundraising restrictions will serve the public interest by enabling NCE stations to partner with charities and other non-profit organizations to raise funds for worthy causes. Third-party fundraising programs will also help to raise public awareness about important topics, such as poverty, health care, and humanitarian issues. The Report and Order concludes that permitting NCE stations to conduct limited third-party fundraising will not undermine the noncommercial nature of NCE stations or their primary function of serving their communities of license through educational programming. 31. The rules adopted in the Report and Order are intended to provide NCE stations the flexibility to conduct limited third-party fundraising, while minimizing any impact on the noncommercial broadcasting service. Specifically, these rules:Authorize NCE stations to conduct third-party fundraising that interrupts regular programming; Include an exemption from the rule authorizing NCE stations to conduct third-party fundraising which provides that no NCE station that receives funding from the Corporation for Public Broadcasting (CPB) shall have the authority to conduct third-party fundraising; Limit the non-profit organizations that are eligible beneficiaries of third-party fundraising to entities that are recognized as tax exempt, non-profit organizations under Section 501(c)(3) of the Internal Revenue Code; Authorize NCE stations to spend up to one percent of their total annual airtime conducting third-party fundraising; Require NCE stations that conduct third-party fundraising to air audience disclosures, at the beginning and ending of the fundraising programming and at least once during each hour of the program, that clearly state that the fundraiser is not for the benefit of the station itself and specifically identify the non-profit organization that is the intended beneficiary of the fundraising; Authorize NCE stations to accept reimbursement of expenses incurred in conducting third-party fundraising activities or airing third-party fundraising programs, but prohibit NCE stations from receiving ``additional consideration'' in exchange for conducting or airing third-party fundraising programs; and Require NCE stations that conduct third-party fundraising to include certain information relating to their fundraising activities in their public files. Summary of Significant Issues Raised in Response to the IRFA 32. No comments were filed in response to the IRFA. One commenter raised concerns that the reporting requirements proposed in the NPRM could impose unnecessary burdens on small NCE licensees. Response to Comments by the Chief Counsel for Advocacy of the Small Business Administration 33. Pursuant to the Small Business Jobs Act of 2010, 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. The Chief Counsel did not file any comments in response to the proposed rules in this proceeding. Description and Estimate of the Number of Small Entities To Which the Rules Will Apply 34. The RFA directs agencies to provide a description of, and where feasible, an estimate of the number of small entities that may be affected by the proposed rules, if adopted 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. Below, we provide a description of such small entities, as well as an estimate of the number of such small entities, where feasible. 35. 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, we therefore estimate that the majority of television [[Page 21134]] broadcasters are small entities under the applicable SBA size standard. 36. The Commission has estimated the number of licensed commercial television stations to be 1,384. Of this total, 1,264 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 February 24, 2017, and therefore these licensees qualify as small entities under the SBA definition. In addition, the Commission has estimated the number of licensed NCE television stations to be 394. 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. 37. We note, however, that in assessing whether a business concern qualifies as ``small'' under the above definition, business (control) affiliations must be included. Our estimate, therefore likely overstates the number of small entities that might be affected by our action, because the revenue figure on which it is based does not include or aggregate revenues from affiliated companies. In addition, another element of the definition of ``small business'' requires that an entity not be dominant in its field of operation. We are unable at this time to define or quantify the criteria that would establish whether a specific television 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. 38. 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. 39. According to Commission staff review of the BIA Publications, Inc. Master Access Radio Analyzer Database as of June 2, 2016, about 11,386 (or about 99.9 percent) of 11,395 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 radio stations to be 11,415. We note that the Commission has also estimated the number of licensed NCE radio stations to be 4,101. 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. We also note 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. 40. In addition, to be determined a ``small business,'' an entity may not be dominant in its field of operation. We further note, 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 these bases, thus our estimate of small businesses may therefore be over-inclusive. 41. Small Entities, Small Organizations, Small Governmental Jurisdictions. Our proposed actions, over time, may affect small entities that are not easily categorized at present. We therefore describe here, at the outset, three comprehensive small entity size standards that could be directly affected herein. As of 2014, according to the SBA, there were 28.2 million small businesses in the U.S., which represented 99.7% of all businesses in the United States. Additionally, 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 2007, there were approximately 1,621,215 small organizations. Finally, the term ``small governmental jurisdiction'' is defined generally as ``governments of cities, towns, townships, villages, school districts, or special districts, with a population of less than fifty thousand.'' Census Bureau data for 2012 indicate that there were 89,476 local governmental jurisdictions in the United States. We estimate that, of this total, as many as 88,761 entities may qualify as ``small governmental jurisdictions.'' Thus, we estimate that most governmental jurisdictions are small. C. Description of Projected Reporting, Recordkeeping, and Other Compliance Requirements for Small Entities 42. The Report and Order requires NCE stations that choose to conduct third-party fundraising to include certain information concerning their fundraising activities in the public files. Specifically, NCE stations that conduct third-party fundraising must place in their public files, on a quarterly basis, the following information for each third-party fundraising program or activity: the date, time, and duration of the fundraiser; the type of fundraising activity; the name of the non-profit organization benefitted by the fundraiser; a brief description of the specific cause or project, if any, supported by the fundraiser; and, to the extent that the NCE station participated in tallying or receiving any funds for the non- profit group, an approximation of the total funds raised. D. Steps Taken To Minimize Significant Economic Impact on Small Entities and Significant Alternatives Considered 43. The RFA requires an agency to describe any significant alternatives that it has considered in reaching its proposed 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 and reporting requirements under the rule for such small entities; (3) the use of performance, rather than design standards; and (4) an exemption from coverage of the rule, or any part thereof, for small entities.'' 44. The NPRM in this proceeding sought comment on whether to require NCE stations that conduct third-party fundraising to file annual reports on their fundraising activities and to require NCE stations to place these reports in their public files. In order to address the concerns that reporting would place unnecessary burdens on small NCE licensees and to minimize burdens on NCE stations, the Report and Order declines to adopt the reporting requirement and instead simply requires NCE stations that conduct third-party fundraising to place certain information concerning their fundraising activities in their public files on a quarterly basis and only if there was fund- raising activity for that [[Page 21135]] quarter. Additionally, the Report and Order adopts an exemption from the rule authorizing NCE stations to conduct third-party fundraising which provides that no NCE station that receives CPB funding shall have the authority to conduct third-party fundraising. This exemption is intended to ease the potential burdens that the revised rules may place on CPB-funded NCE stations, the majority of which are opposed to revision of the rules to allow third-party fundraising. E. Report to Congress 45. The Commission will send a copy of the Report and Order, including this FRFA, in a report to be sent to Congress pursuant to the Congressional Review Act. In addition, the Commission will send a copy of the Report and Order, including this FRFA, to the Chief Counsel for Advocacy of the SBA. The Report and Order and FRFA (or summaries thereof) will also be published in the Federal Register. F. Paperwork Reduction Act of 1995 Analysis 46. This Report and Order contains either new or modified information collection requirements subject to the Paperwork Reduction Act of 1995 (PRA). It will be submitted to the OMB for review under Section 3507(d) of the PRA. The OMB, the general public, and other federal agencies are invited to comment on the new or modified information collection requirements contained in this proceeding. G. Additional Information 47. For additional information on this proceeding, contact Kathy Berthot, [email protected], of the Media Bureau, Policy Division, (202) 418-2120. V. Ordering Clauses 48. Accordingly, it is ordered, pursuant to the authority contained in Sections 1, 4(i), 303(r), and 399B of the Communications Act of 1934, as amended, 47 U.S.C. 151, 154(i), 303(r), and 399B, that this Report and Order is adopted. The requirements of this Report and Order shall become effective July 5, 2017, except for Sec. Sec. 73.503(e)(1), 73.621(f)(1), and 73.2527(e)(14), which contain new or modified information collection requirements that require approval by the OMB under the Paperwork Reduction Act and will become effective after the Commission publishes a document in the Federal Register announcing such approval and the relevant effective date. 49. 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 Regulatory Flexibility Analysis, to the Chief Counsel for Advocacy of the Small Business Administration. List of Subjects in 47 CFR Part 73 Radio, Reporting and recordkeeping requirements, 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 73 as follows: PART 73--RADIO BROADCAST SERVICES 0 1. The authority citation for part 73 continues to read as follows: Authority: 47 U.S.C. 154, 303, 334, 336, and 339. 0 2. Section 73.503 is amended by revising the last sentence of paragraph (d), redesignating paragraph (e) as (f), adding new paragraph (e), and revising the Note to Sec. 73.503 to read as follows: Sec. 73.503 Licensing requirements and service. * * * * * (d) * * * The scheduling of any announcements and acknowledgements may not interrupt regular programming, except as permitted under paragraph (e) of this section. (e) A noncommercial educational FM broadcast station may interrupt regular programming to conduct fundraising activities on behalf of a third-party non-profit organization, provided that all such fundraising activities conducted during any given year do not exceed one percent of the station's total annual airtime. A station may use the prior year's total airtime for purposes of determining how many hours constitute one percent of its total annual airtime. With respect to stations that multicast programming on two or more separate channels, the one-percent annual limit will apply separately to each individual programming stream. For purposes of this paragraph, a non-profit organization is an entity that qualifies as a non-profit organization under 26 U.S.C. 501(c)(3). (1) Audience disclosure. A noncommercial educational FM broadcast station that interrupts regular programming to conduct fundraising activities on behalf of a third-party non-profit organization must air a disclosure during such activities clearly stating that the fundraiser is not for the benefit of the station itself and identifying the entity for which it is fundraising. The station must air the audience disclosure at the beginning and the end of each fundraising program and at least once during each hour in which the program is on the air. (2) Reimbursement. A noncommercial educational FM broadcast station that interrupts regular programming to conduct fundraising activities on behalf of a third-party non-profit organization may accept reimbursement of expenses incurred in conducting third-party fundraising activities or airing third-party fundraising programs. (3) Exemption. No noncommercial educational FM broadcast station that receives funding from the Corporation for Public Broadcasting shall have the authority to interrupt regular programming to conduct fundraising activities on behalf of a third-party non-profit organization. * * * * * Note to Sec. 73.503: Commission interpretation on this rule, including the acceptable form of acknowledgements, may be found in the Second Report and Order in Docket No. 21136 (Commission Policy Concerning the Noncommercial Nature of Educational Broadcast Stations), 86 FCC 2d 141 (1981); the Memorandum Opinion and Order in Docket No. 21136, 90 FCC 2d 895 (1982); the Memorandum Opinion and Order in Docket 21136, 97 FCC 2d 255 (1984); and the Report and Order in Docket No. 12-106 (Noncommercial Educational Station Fundraising for Third-Party Non-Profit Organizations), FCC 17-41, April 20, 2017. See also Commission Policy Concerning the Noncommercial Nature of Educational Broadcast Stations, Public Notice, 7 FCC Rcd 827 (1992), which can be retrieved through the Internet at http://www.fcc.gov/mmb/asd/nature.html. 0 3. Section 73.621 is amended by revising the last sentence of paragraph (e) introductory text and the Note to paragraph (e), redesignating paragraphs (f) through (i) as paragraphs (g) through (j), and adding new paragraph (f) to read as follows: Sec. 73.621 Noncommercial educational TV stations. * * * * * (e) * * * The scheduling of any announcements and acknowledgements may not interrupt regular programming, except as permitted under paragraph (f) of this section. Note to paragraph (e): Commission interpretation of this rule, including the acceptable form of acknowledgements, may be found in the Second Report and Order in Docket No. 21136 (Commission Policy Concerning the Noncommercial Nature of Educational Broadcast Stations), 86 F.C.C. 2d [[Page 21136]] 141 (1981); the Memorandum Opinion and Order in Docket No. 21136, 90 FCC 2d 895 (1982); the Memorandum Opinion and Order in Docket 21136, 49 FR 13534, April 5, 1984; and the Report and Order in Docket No. 12-106 (Noncommercial Educational Station Fundraising for Third- Party Non-Profit Organizations), FCC 17-41, April 20, 2017. (f) A noncommercial educational television station may interrupt regular programming to conduct fundraising activities on behalf of a third-party non-profit organization, provided that all such fundraising activities conducted during any given year do not exceed one percent of the station's total annual airtime. A station may use the prior year's total airtime for purposes of determining how many hours constitute one percent of its total annual airtime. With respect to stations that multicast programming on two or more separate channels, the one-percent annual limit will apply separately to each individual programming stream. For purposes of this paragraph, a non-profit organization is an entity that qualifies as a non-profit organization under 26 U.S.C. 501(c)(3). (1) Audience disclosure. A noncommercial educational television station that interrupts regular programming to conduct fundraising activities on behalf of a third-party non-profit organization must air a disclosure during such activities clearly stating that the fundraiser is not for the benefit of the station itself and identifying the entity for which it is fundraising. The station must air the audience disclosure at the beginning and the end of each fundraising program and at least once during each hour in which the program is on the air. (2) Reimbursement. A noncommercial educational television station that interrupts regular programming to conduct fundraising activities on behalf of a third-party non-profit organization may accept reimbursement of expenses incurred in conducting third-party fundraising activities or airing third-party fundraising programs. (3) Exemption. No noncommercial educational television station that receives funding from the Corporation for Public Broadcasting shall have the authority to interrupt regular programming to conduct fundraising activities on behalf of a third-party non-profit organization. * * * * * 0 4. Section 73.3527 is amended by adding paragraph (e)(14) to read as follows: Sec. 73.3527 Local public inspection file of noncommercial educational stations. * * * * * (e) * * * (14) Information on Third-Party Fundraising. For noncommercial educational broadcast stations that interrupt regular programming to conduct fundraising activities on behalf of a third-party non-profit organization pursuant to Sec. 73.503(e) (FM stations) or Sec. 73.621(f) (television stations), every three months, the following information for each third-party fundraising program or activity: The date, time, and duration of the fundraiser; the type of fundraising activity; the name of the non-profit organization benefitted by the fundraiser; a brief description of the specific cause or project, if any, supported by the fundraiser; and, to the extent that the station participated in tallying or receiving any funds for the non-profit group, an approximation of the total funds raised. The information for each calendar quarter is to be filed by the tenth day of the succeeding calendar quarter (e.g., January 10 for the quarter October-December, April 10 for the quarter January-March, etc.). * * * * * [FR Doc. 2017-09002 Filed 5-4-17; 8:45 am] BILLING CODE 6712-01-P
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licensees qualify as small entities under and their supporters at paragraphs 8 and to any party (including all parties under
the SBA definition. In addition, the 10, above. common control) if the grant, transfer or
Commission has estimated the number 26. Ordering Clauses. Accordingly, it assignment of such license would result
of licensed noncommercial educational is ordered that, pursuant to the authority in such party or any of its stockholders,
(NCE) television stations to be 394. contained in Section 405(a) of the partners, members, officers or directors
Notwithstanding, the Commission does Communications Act of 1934, as having a cognizable interest in
not compile and otherwise does not amended, and Section 1.429 of the television stations which have an
have access to information on the Commission’s rules, the Petition for aggregate national audience reach
revenue of NCE stations that would Reconsideration filed by ION Media exceeding thirty-nine (39) percent.
permit it to determine how many such Networks, Inc. and Trinity Christian (2) * * *
stations would qualify as small entities. Center of Santa Ana, Inc. on November (i) National audience reach means the
23. The Commission notes, however, 23, 2016, is granted in part and total number of television households in
that in assessing whether a business otherwise is dismissed as moot, to the the Nielsen Designated Market Areas
concern qualifies as small under the extent provided herein. (DMAs) in which the relevant stations
above definition, business (control) 27. It is further ordered that pursuant are located divided by the total national
affiliations must be included. The to the authority contained in Sections 1, television households as measured by
estimate, therefore, likely overstates the 2(a), 4(i), 4(j), 303(r), 307, 309, and 310 DMA data at the time of a grant,
number of small entities that might be of the Communications Act of 1934, as transfer, or assignment of a license. For
affected by our action because the amended, this Order on Reconsideration purposes of making this calculation,
revenue figure on which it is based does is adopted. The rule modification UHF television stations shall be
not include or aggregate revenues from discussed in this Order on attributed with 50 percent of the
affiliated companies. In addition, an Reconsideration shall be effective June television households in their DMA
element of the definition of ‘‘small 5, 2017. market.
business’’ is that the entity not be 28. It is further ordered that the * * * * *
dominant in its field of operation. The Commission shall send a copy of this [FR Doc. 2017–09001 Filed 5–4–17; 8:45 am]
Commission is unable at this time to Order on Reconsideration to Congress BILLING CODE 6712–01–P
define or quantify the criteria that and to the Government Accountability
would establish whether a specific Office pursuant to the Congressional
television station is dominant in its field Review Act. FEDERAL COMMUNICATIONS
of operation. Accordingly, the estimate 29. It is further ordered that the COMMISSION
of small businesses to which rules may Commission’s Consumer and
apply does not exclude any television Governmental Affairs Bureau, Reference 47 CFR Part 73
station from the definition of a small Information Center, shall send a copy of [MB Docket No. 12–106; FCC 17–41]
business on this basis and is therefore this Order on Reconsideration,
possibly over-inclusive. including the Supplemental Final Noncommercial Educational Station
24. The FRFA accompanying the Regulatory Flexibility Analysis, to the Fundraising for Third-Party Non-Profit
Report and Order stated that Chief Counsel for Advocacy of the Small Organizations
elimination of the UHF discount
Business Administration. AGENCY: Federal Communications
modified calculation of compliance
with the national audience reach cap List of Subjects in 47 CFR Part 73 Commission.
and would affect reporting, ACTION: Final rule.
Television; Radio.
recordkeeping, or other compliance
requirements. Specifically, the Federal Communications Commission. SUMMARY: In this document, the
Commission would have potentially Marlene H. Dortch, Commission revises its rules to allow
needed to modify FCC forms or related Secretary. noncommercial educational (NCE)
instructions pursuant to the Report and broadcast stations to conduct limited
Final Rule on-air fundraising activities that
Order. This Order on Reconsideration
reinstates the UHF discount, thereby For the reasons discussed in the interrupt regular programming for the
maintaining the current methodology preamble, the Federal Communication benefit of third-party non-profit
for calculating compliance with the cap. Commission amends 47 CFR part 73 as organizations. Permitting NCE stations
Therefore, no changes to FCC forms or follows: to conduct third-party fundraising on a
instructions will be necessary and the limited basis will serve the public
reporting, recordkeeping, and other PART 73—RADIO BROADCAST interest by enabling NCE stations to
compliance requirements will not be SERVICES support charities and other non-profit
affected. Thus, reinstatement of the UHF organizations in their fundraising efforts
■ 1. The authority citation for part 73 for worthy causes without undermining
discount will not impose additional
continues to read as follows: the noncommercial nature of NCE
obligations or expenditure of resources
on small businesses. Authority: 47 U.S.C. 154, 303, 334, 336 stations or their primary function of
25. The Order on Reconsideration and 339. serving their communities of license
determined that the discount and cap ■ 2. Amend § 73.3555 by revising through educational programming.
were linked and that considering them paragraph (e)(1) and (e)(2)(i) to read as DATES: Effective July 5, 2017, except for
in tandem would better serve the public follows: the amendments to §§ 73.503(e)(1),
jstallworth on DSK7TPTVN1PROD with RULES
interest than simply eliminating the 73.621(f)(1), and 73.3527(e)(14), which
discount alone. Examining the discount § 73.3555 Multiple ownership. contain new or modified information
and cap together in a rulemaking * * * * * collection requirements that require
proceeding to be opened later this year (e) National television multiple approval by the Office of Management
will positively impact broadcasters, ownership rule. (1) No license for a and Budget (OMB) under the Paperwork
including small entities, and avoid the commercial television broadcast station Reduction Act (PRA) and will become
potential harms described by Petitioners shall be granted, transferred or assigned effective after the Commission publishes
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cultural nature.’’ The INC Report noted program for a child poverty relief suitable for the more routine third-party
that ‘‘[i]n some cases having local organization could serve to educate the fundraising activities that we address in
charities on the air can be a useful way stations’ listeners about the needs of this proceeding. We likewise reject
of informing residents about problems children around the world who suffer in proposals that we expand the existing
in their communities’’ and ‘‘can help extreme poverty. Non-profit waiver process to allow NCE stations to
[NCE] stations achieve their public organizations may be better able to seek waivers to conduct third-party
service or religious missions.’’ address their charitable missions with fundraising activities that are not
5. On April 25, 2012, in response to the financial support received from the connected to specific disasters. We
the recommendations in the INC Report, NCE stations’ audiences. Some of this think that it would impose an
the Commission adopted a Notice of financial support may directly benefit unnecessary burden on both NCE
Proposed Rulemaking seeking comment NCE stations’ local communities. Third- licensees and Commission staff to
on whether to allow NCE stations to party fundraising may also help to require NCE licensees to seek waivers
conduct third-party fundraising. The lessen the financial burden on each time they want to conduct such
Commission received 23 comments and governmental entities that address routine third-party fundraising.
seven replies. NRB and all of the social needs through appropriations 9. We are also not persuaded by
religious broadcasters that filed from public funds. arguments that relaxing the third-party
comments favor allowing NCE stations 7. We further conclude that allowing fundraising restrictions will adversely
to conduct third-party fundraising. NCE stations to conduct limited third- affect the noncommercial broadcasting
Commenters representing secular NCE party fundraising will not undermine service by reducing the amount of
broadcasters, including National Public the noncommercial broadcasting airtime dedicated to educational,
Radio (NPR), Public Broadcasting service, as suggested by some instructional, and cultural
Service and Association for Public commenters. The longstanding third- programming; lessening the appeal of
Television Stations (PBS/APTS), and party fundraising restrictions reflect NCE stations to their audiences; or
university and college NCE stations, concerns that any promotional or jeopardizing fundraising for NCE
oppose relaxation of the third-party fundraising activities by NCE stations stations’ own operations. First and
fundraising restrictions. must not adversely affect the foremost, we emphasize that the choice
educational programming mission or to conduct third-party fundraising will
III. Discussion noncommercial character of these be entirely voluntary on the part of NCE
A. Relaxation of Third-Party stations. Nevertheless, we conclude that stations. NCE stations that do not wish
Fundraising Restrictions a blanket prohibition on third-party to engage in third-party fundraising are
fundraising that interrupts regular not required to do so. Thus, NCE
6. We relax the third-party programming is no longer necessary to stations concerned that airing third-
fundraising restrictions to allow NCE preserve NCE stations’ noncommercial party fundraising programs will
stations to conduct limited on-air nature and ensure that NCE stations jeopardize fundraising for their own
fundraising activities that interrupt remain focused on their primary operations can simply choose not to
regular programming for the benefit of function of providing educational engage in such third-party fundraising.
third-party non-profit organizations. programming to their communities of Additionally, we have determined that
Such relief will provide NCE stations license. The Commission’s experience third-party fundraising programs may
greater flexibility to undertake in granting waivers to allow NCE enhance the educational nature of NCE
fundraising for third-party non-profit stations to conduct fundraising for stations in some situations by raising
organizations. Under the current rules, disaster relief efforts has demonstrated public awareness about social needs and
program-length fundraising for third- that NCE stations can conduct limited charitable causes supported by non-
party non-profit organizations is third-party fundraising without profit organizations. Further, as we
prohibited (even if regularly scheduled) compromising their noncommercial explain below, we are limiting the
because such programming is nature and the valuable program service amount of time that NCE stations can
considered to suspend ‘‘regular they provide to the public. The public spend on third-party fundraising that
programming.’’ Under the rules we has responded enthusiastically to these interrupts regular programming to one
adopt today, NCE stations will be able disaster relief fundraising activities, and percent of their total annual airtime. We
to conduct fundraising activities that there is no evidence in the record before believe that the one-percent annual
alter or suspend regular programming— us that these fundraising activities have limit strikes the proper balance between
including program-length fundraising altered the public’s perception of providing NCE stations some flexibility
activities—at their discretion, as long as noncommercial broadcasting. to support their fundraising missions
the fundraising programs do not exceed Accordingly, we find that it is and ensuring that their third-party
the one-percent cap discussed below. appropriate to allow NCE stations to fundraising activities do not take away
We conclude that providing NCE conduct third-party fundraising on a from their primary function of providing
stations the flexibility to engage in limited basis. noncommercial, educational
limited fundraising for charities and 8. We disagree with assertions that the programming to their local
other third-party non-profit success of the existing waiver process communities.
organizations will benefit the public demonstrates that changes to the rules 10. We disagree with assertions that
interest. Third-party fundraising are unnecessary. As discussed above, third-party fundraising will change the
programs may enhance the educational we have determined that the public public’s perception of noncommercial
nature of NCE stations by educating the interest will be served by relaxing our broadcasting by causing the public to
jstallworth on DSK7TPTVN1PROD with RULES
public about the social needs and third-party fundraising restrictions to view the ‘‘business’’ of NCE stations as
charitable causes supported by non- allow NCE stations to conduct limited charitable fundraising, which could
profit organizations. For example, a third-party fundraising activities harm all NCE stations, even those that
fundraising program for a breast cancer unrelated to relief efforts for singular do not change their on-air practices.
charity could help to educate the catastrophic events. The waiver process NCE stations that choose to engage in
station’s audience about early detection is intended to provide relief in third-party fundraising will continue to
and support services, and a fundraising extraordinary circumstances, and is not spend the vast majority of their time—
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and abroad. Over 65% of the 1,200 of providing educational programming 20. We will retain our long-standing
respondents indicated that they want to to their communities of license. A one- waiver process to permit NCE stations to
be informed about the needs of poor percent annual limit—which equates to conduct time-limited on-air fundraising
people regardless of where they live, approximately 88 hours annually or 1.7 for specific disasters and other singular
over 44% indicated that they are willing hours weekly for stations on the air 24 catastrophic events, such as hurricanes
to respond financially to help worthy hours a day—will afford NCE stations and tornadoes, as suggested by
causes both in the United States and flexibility to conduct third-party commenters. Since such events occur
internationally, and 26% indicated that fundraising, while also ensuring that only rarely, it will not burden
awareness of problems in other NCE stations do not frustrate their Commission staff to retain the existing
countries makes them more likely to audiences with excessive fundraising waiver process for such events for all
help those in their own communities. appeals or divert stations from primary NCE stations, both exempt and non-
Accordingly, we will afford NCE mission of providing educational exempt. This will enable CPB-funded
stations the discretion to raise funds for programming to their communities. We stations that are exempt from the new
both local and non-local non-profit reject proposals that we adopt a ten- rule to conduct third-party fundraising
organizations. While we are not limiting percent annual limit on third-party for disaster relief efforts by seeking a
the beneficiaries of third-party fundraising, or leave it entirely up to waiver as they have done in the past.
fundraising to local non-profit groups, NCE stations to decide how much of Non-exempt stations may use the same
we note that many NCE stations already their airtime to devote to third-party long-standing process if they wish to
have relationships with non-profit fundraising. We share NPR’s concern conduct third-party fundraising beyond
groups in their local communities and that a ten-percent annual limit would their one-percent annual limit, but the
we expect that NCE stations may be represent a significant portion of a standard will remain the same. This
highly motivated to support local non- station’s annual program schedule and approach will ensure that if a disaster
profits. could further erode the distinction occurs after a non-exempt station
17. We also decline to limit eligible between NCE stations and their reaches its one-percent annual limit, the
beneficiaries of an NCE station’s third- commercial counterparts. station would still be able to seek a
party fundraising to non-profit waiver to raise funds on-air to support
19. We recognize that an NCE
organizations that are unaffiliated with these efforts.
station’s total annual airtime may vary
the station. The NPRM asked for 21. We decline to adopt any general
slightly from year to year and that it limits on the duration of a specific
comment on whether to limit
fundraising on behalf of third parties to may be difficult for some stations to fundraising program or on a discrete
unaffiliated third parties, given that determine in advance precisely how fundraising effort. We think it is
third-party fundraising on behalf of many hours they will operate in a given unlikely that NCE licensees will risk
affiliated entities may restrict an NCE year. Therefore, as suggested by NRB, alienating their audiences by
station’s ability to conduct fundraising we will allow NCE stations that engage interrupting their regular programming
for local non-profit organizations. As in third-party fundraising to use the for an extended duration to conduct
discussed above, we have determined prior year’s total airtime for purposes of third-party fundraising. Thus, we find it
that it will not significantly further determining how many hours constitute is unnecessary to adopt durational
localism to limit NCE stations to one percent of their total annual airtime. limits on such fundraising programs.
fundraising for local non-profit For example, an NCE station that wishes
to devote one percent of its airtime in D. Audience Disclosures
organizations. Thus, we think it is
unnecessary to limit third-party 2017 to third-party fundraising may use 22. We require NCE stations that
fundraising to unaffiliated entities to its total annual airtime for 2016 in interrupt regular programming to
ensure that NCE stations are able to calculating the one percent cap. conduct third-party fundraising to air
fundraise for local non-profit groups. Furthermore, with respect to NCE audience disclosures that clearly state
stations that multicast programming on that the fundraiser is not for the benefit
C. Annual Limit on Third-Party two or more separate channels, we will of the station itself and identify the non-
Fundraising apply the one-percent annual limit profit organization intended to benefit
18. We will allow NCE broadcasters to separately to each individual from the fundraising. Most commenters
spend up to one percent of their total programming stream. Thus, an NCE that address this issue support an
annual airtime conducting third-party station with three programming streams audience disclosure requirement,
fundraising. NRB asserts that a one- may spend up to one percent of the total acknowledging that it will decrease the
percent annual limit provides adequate annual airtime of each stream airing likelihood of confusion on the part of
flexibility to NCE stations, explaining third-party fundraising programming on station audiences as to whether the
that NCE licensees ‘‘will be reluctant to that stream. We will not, however, allow fundraising is intended to benefit the
frustrate their audiences with excessive NCE stations with multiple station or another entity and as to the
or demanding appeals for third-party programming streams to aggregate their identity of the entity for which the
non-profits, particularly when their own total hours of programming from all of fundraising is being conducted.
stations rely on donations from their their streams and allocate their Commenters offer a range of suggestions
[audiences] in order to operate.’’ We fundraising activity between and among as to the details and frequency of the
agree with NRB and other commenters streams or on a single program stream audience disclosures. We adopt NRB’s
that a one-percent annual limit will at their discretion, as proposed by one proposed approach and require that
strike an appropriate balance between commenter. As discussed above, we NCE stations make disclosures at the
jstallworth on DSK7TPTVN1PROD with RULES
allowing NCE stations the flexibility to believe that the one-percent annual beginning and the end of the
support the fundraising efforts of third- limit is important to ensuring that third- fundraising program and at least once
party non-profit organizations and party fundraising activities do not during each hour of the program. We
ensuring that third-party fundraising undermine the noncommercial will not require NCE stations to use any
does not undermine the noncommercial character of NCE stations, and including particular language in the disclosure,
nature of the participating stations and more fundraising on a particular stream but the disclosure must clearly state that
divert them from their primary function would undermine that goal. the fundraiser is not for the benefit of
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![21132 Federal Register / Vol. 82, No. 86 / Friday, May 5, 2017 / Rules and Regulations
the station itself and specifically programming akin to advertising, thus provide transparency regarding NCE
identify the non-profit organization for undermining their noncommercial, stations’ third-party fundraising
which the fundraising is being educational mission. It also could activities to the stations’ audiences,
conducted. As NRB suggests, an NCE mislead fundraising contributors, who while minimizing any burdens on NCE
station may include more detailed might assume that their donations are stations. We also conclude that it is
information—such as a description of being used exclusively to advance the unnecessary to require NCE licensees to
the non-profit entity and any special mission of the fundraiser. Finally, as certify compliance with the annual limit
project or purpose for which the funds acknowledged by NRB, our rules permit and other restrictions on third-party
are being raised—on the station’s Web an NCE station to broadcast fundraising in their license renewal
site and invite the audience to access programming furnished by third parties applications.
that information. only ‘‘if no other consideration than the 26. Additionally, we do not require
23. One commenter opposes the furnishing of the program and the costs NCE stations to locally produce all
audience disclosure requirement, incidental to its production and third-party fundraising programs and
arguing that it ‘‘would seem obvious broadcast are received by the licensee.’’ conduct all third-party fundraising
that any appeal for funds . . . will We decline NRB’s request to create a activities themselves, including
reveal the identity of the party soliciting distinction between ‘‘regular collecting and distributing the funds to
the donation.’’ We disagree. Given that ‘programming’ ’’ and ‘‘special the non-profit entity. We agree with
NCE stations frequently conduct fundraising activities by NCE stations commenters who argue that requiring
fundraising to support their own for a third-party non-profit group,’’ with NCE stations to locally produce third-
operations and programming, we the latter not subject to the prohibition party fundraising programs may be
believe that audience confusion could on receiving additional consideration. unnecessarily burdensome and
arise, particularly where there is an We find that the policy rationale for inefficient. Further, we are not
affiliation between an NCE station and prohibiting additional consideration in convinced that requiring local
the non-profit organization for which the case of regular programming, i.e., production of third-party fundraising
the fundraising is being conducted. that such consideration could activities is necessary to promote
Accordingly, we conclude that an undermine the noncommercial, localism. As EMF points out,
audience disclosure requirement is educational character of public fundraising is not inherently local, but
warranted to ensure that the beneficiary broadcast stations, applies equally to instead can have a regional, national, or
of the fundraising is clearly identified third party fundraising activities and worldwide message and still serve the
and avoid the potential for audience programs. needs of local communities. We also
confusion. We further find that this note that NCE stations are permitted
audience disclosure requirement will F. Public File Requirement and Other under the Commission’s rules to air
not impose a significant burden on NCE Matters programming that is not locally
stations as it simply requires a statement 25. We do not require NCE stations produced. Indeed, the Commission has
that the fundraising is not for the that participate in third-party consistently found that non-locally
stations and identification of the fundraising that interrupts regular produced programming can serve the
organization that will receive the funds. programming to submit reports to the needs of a community. Moreover, we are
Commission detailing their fundraising unpersuaded by NPR’s argument that
E. Reimbursement of Expenses activities, but will instead require such allowing outside entities to
24. We allow NCE stations to accept stations to include appropriate independently produce fundraising
reimbursement of expenses incurred in information on their fundraising appeals and handle the collection of
conducting third-party fundraising activities in their public inspection files. funds could ‘‘fuel the perception that
activities or airing third-party Specifically, we require NCE stations the station lacks editorial independence
fundraising programs. Expenses for that conduct third-party fundraising to and that its airtime is being leased to the
which reimbursement may be accepted place in their public files, on a quarterly highest bidder.’’ As noted above, NCE
include expenses incurred by an NCE basis, the following information for each stations are already permitted to air
station in producing third-party third-party fundraising program or non-locally produced programming, and
programming and the station’s operating activity: The date, time, and duration of NPR does not suggest that the broadcast
costs in connection with the broadcast the fundraiser; the type of fundraising of such programming has created a
of third-party fundraising programming. activity; the name of the non-profit perception that NCE stations lack
This is consistent with Section organization benefitted by the editorial independence. We do not
399B(b)(1) of the Act, 47 U.S.C. fundraiser; a brief description of the believe that allowing NCE stations to
399B(b)(1), which allows ‘‘public specific cause or project, if any, use up to one percent of their total
broadcast station[s] . . . to engage in the supported by the fundraiser; and, to the annual airtime for non-locally produced
offering of services, facilities, or extent that the NCE station participated third-party fundraising will cause the
products in exchange for in tallying or receiving any funds for the public to lose confidence in the stations’
remuneration,’’ except that such stations non-profit group, an approximation of editorial independence.
may not make their facilities available the total funds raised. NCE stations that 27. Finally, we will not require NCE
for the broadcast of any advertisements. do not conduct any third-party stations that want to participate in third-
We decline, however, to allow NCE fundraising in a given quarter will not party fundraising to affirmatively ‘‘opt
stations to receive ‘‘additional be required to include any fundraising in’’ by filing a letter or notification with
consideration’’ in exchange for information in their public file for that the Commission. We conclude that there
jstallworth on DSK7TPTVN1PROD with RULES
conducting or airing third-party quarter. A number of commenters raised would be little benefit to non-profit
fundraising programs. Allowing NCE concerns that a reporting requirement organizations from opt-in notifications,
stations to receive additional would impose unnecessary burdens on as such organizations are more likely to
consideration for third-party fundraising NCE licensees. NRB and other seek out fundraising partners based on
activities could create the perception commenters support a public file existing relationships with NCE stations
that NCE stations are engaging in requirement. We conclude that the more than by perusing notifications filed with
commercial activity and airing modest approach we adopt here will the Commission.
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![21136 Federal Register / Vol. 82, No. 86 / Friday, May 5, 2017 / Rules and Regulations
141 (1981); the Memorandum Opinion and (14) Information on Third-Party DATES: This final rule is effective June
Order in Docket No. 21136, 90 FCC 2d 895 Fundraising. For noncommercial 5, 2017.
(1982); the Memorandum Opinion and Order educational broadcast stations that FOR FURTHER INFORMATION CONTACT:
in Docket 21136, 49 FR 13534, April 5, 1984;
interrupt regular programming to Claire McKenna, Senior Attorney, Office
and the Report and Order in Docket No. 12–
106 (Noncommercial Educational Station conduct fundraising activities on behalf of the General Counsel, U.S. Department
Fundraising for Third-Party Non-Profit of a third-party non-profit organization of Transportation, Washington, DC, at
Organizations), FCC 17–41, April 20, 2017. pursuant to § 73.503(e) (FM stations) or claire.mckenna@dot.gov or (202) 366–
§ 73.621(f) (television stations), every 0365.
(f) A noncommercial educational
three months, the following information
television station may interrupt regular SUPPLEMENTARY INFORMATION:
for each third-party fundraising program
programming to conduct fundraising
or activity: The date, time, and duration Electronic Access and Filing
activities on behalf of a third-party non-
of the fundraiser; the type of fundraising This document may be viewed online
profit organization, provided that all
activity; the name of the non-profit through the Federal eRulemaking portal
such fundraising activities conducted
organization benefitted by the at https://www.regulations.gov.
during any given year do not exceed one
fundraiser; a brief description of the Retrieval help and guidelines are
percent of the station’s total annual
specific cause or project, if any, available on the Web site. It is available
airtime. A station may use the prior
supported by the fundraiser; and, to the 24 hours each day, 365 days a year. An
year’s total airtime for purposes of
extent that the station participated in electronic copy of this document may
determining how many hours constitute
tallying or receiving any funds for the also be downloaded from the Office of
one percent of its total annual airtime.
non-profit group, an approximation of the Federal Register home page at:
With respect to stations that multicast
the total funds raised. The information https://www.ofr.gov and the
programming on two or more separate
for each calendar quarter is to be filed Government Printing Office Web page
channels, the one-percent annual limit
by the tenth day of the succeeding at: https://www.gpo.gov.
will apply separately to each individual
calendar quarter (e.g., January 10 for the
programming stream. For purposes of I. Purpose of the Regulatory Action
quarter October–December, April 10 for
this paragraph, a non-profit organization
the quarter January–March, etc.). The United States Department of
is an entity that qualifies as a non-profit
organization under 26 U.S.C. 501(c)(3). * * * * * Transportation (Department or DOT) is
(1) Audience disclosure. A [FR Doc. 2017–09002 Filed 5–4–17; 8:45 am] issuing this final rule to update the
noncommercial educational television BILLING CODE 6712–01–P Department’s regulations prescribing
station that interrupts regular procedures for the public availability of
programming to conduct fundraising information to conform these
activities on behalf of a third-party non- procedures with recent amendments to
DEPARTMENT OF TRANSPORTATION the Freedom of Information Act (FOIA)
profit organization must air a disclosure
during such activities clearly stating enacted in the FOIA Improvement Act
Office of the Secretary
that the fundraiser is not for the benefit of 2016, Public Law 114–185. This rule
of the station itself and identifying the also makes technical amendments to 49
49 CFR Part 7
entity for which it is fundraising. The CFR part 7.
station must air the audience disclosure The rule revises the definition of
RIN 2105–AE62 ‘‘reading room records’’ in section 7.2 to
at the beginning and the end of each
fundraising program and at least once Updates To Comply With the FOIA remove the discussion of the locations
during each hour in which the program Improvement Act of 2016 and Other of reading room records. The location of
is on the air. Technical Amendments reading room records is already
(2) Reimbursement. A noncommercial provided in section 7.12(b), therefore,
educational television station that AGENCY: Office of the Secretary (OST), this is not a substantive change. As
interrupts regular programming to Department of Transportation (DOT). required by the section 2 of the FOIA
conduct fundraising activities on behalf ACTION: Final rule. Improvement Act of 2016, this rule also
of a third-party non-profit organization revises the description of ‘‘Frequently
may accept reimbursement of expenses SUMMARY: This final rule updates the Requested Records’’ in section 7.12(a)(4)
incurred in conducting third-party Department of Transportation’s to include records requested three or
fundraising activities or airing third- regulations prescribing procedures for more times under FOIA. The FOIA
party fundraising programs. the public availability of information to Improvement Act of 2016 no longer
(3) Exemption. No noncommercial conform these procedures with requires that agencies maintain physical
educational television station that amendments to the Freedom of locations for the reading rooms. The
receives funding from the Corporation Information Act enacted by the FOIA rule revises the description of reading
for Public Broadcasting shall have the Improvement Act of 2016. This rule also room locations in section 7.12(b) to
authority to interrupt regular removes a reference to the Surface indicate that DOT may continue to
programming to conduct fundraising Transportation Board, as it has been maintain physical reading rooms
activities on behalf of a third-party non- made a separate agency, outside of the (although not required) and, if it does,
profit organization. Department, under the Surface those locations will be listed on the
* * * * * Transportation Board Reauthorization Department’s FOIA Web site
■ 4. Section 73.3527 is amended by
Act of 2015. Finally, this rule makes a (www.transportation.gov/foia).
jstallworth on DSK7TPTVN1PROD with RULES
adding paragraph (e)(14) to read as technical amendment to the In section 7.23, the rule amends
follows: Department’s submitter notice process subparagraph (c)(5) to state that
to include a reference to the Federal Exemption 5’s deliberative process
§ 73.3527 Local public inspection file of Motor Carrier Safety Administration’s privilege applies only to records created
noncommercial educational stations. updated procedures related to the 25 years or more before the date on
* * * * * submission of confidential business which the records are requested, and the
(e) * * * information. rule adds a new paragraph (d) to
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Document Created: 2018-11-08 08:40:13
Document Modified: 2018-11-08 08:40:13
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
| Publisher | Office of the Federal Register, National Archives and Records Administration | |
| Section | Rules and Regulations | |
| Action | Final rule. | |
| Dates | Effective July 5, 2017, except for the amendments to Sec. Sec. 73.503(e)(1), 73.621(f)(1), and 73.3527(e)(14), which contain new or modified information collection requirements that require approval by the Office of Management and Budget (OMB) under the Paperwork Reduction Act (PRA) and will become effective after the Commission publishes a document in the Federal Register announcing such approval and the relevant effective date. | |
| Contact | For additional information, contact Kathy Berthot, [email protected], Media Bureau, Policy Division, at (202) 418-7454. For additional information concerning the PRA information collection requirements contained in this document, contact Cathy Williams, Federal Communications Commission, at (202) 418-2918, or via email [email protected] | |
| FR Citation | 82 FR 21127 | |
| CFR Associated | Radio; Reporting and Recordkeeping Requirements and Television |
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