82_FR_9030 82 FR 9009 - Transition Progress Report Form and Filing Requirements for Stations Eligible for Reimbursement From the TV Broadcast Relocation Fund

82 FR 9009 - Transition Progress Report Form and Filing Requirements for Stations Eligible for Reimbursement From the TV Broadcast Relocation Fund

FEDERAL COMMUNICATIONS COMMISSION

Federal Register Volume 82, Issue 21 (February 2, 2017)

Page Range9009-9011
FR Document2017-02218

In this document, the Federal Communications Commission (Commission) describes the information that must be provided in periodic progress reports (FCC Form 2100--Schedule 387 (Transition Progress Report)) by full power and Class A television stations that are eligible to receive payment of relocation expenses from the TV Broadcast Relocation Fund in connection with their being assigned to a new channel through the Incentive Auction. The Commission previously determined that reimbursable stations must file reports showing how the disbursed funds have been spent and what portion of the stations' construction in complete. These Transition Progress Reports will help the Commission, broadcasters, those involved in construction of broadcast facilities, other interested parties, and the public to assess how disbursed funds have been spent and to monitor the construction of stations.

Federal Register, Volume 82 Issue 21 (Thursday, February 2, 2017)
[Federal Register Volume 82, Number 21 (Thursday, February 2, 2017)]
[Rules and Regulations]
[Pages 9009-9011]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-02218]


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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Part 73

[MB Docket No. 16-306, GN Docket No. 12-268; DA 17-34]


Transition Progress Report Form and Filing Requirements for 
Stations Eligible for Reimbursement From the TV Broadcast Relocation 
Fund

AGENCY: Federal Communications Commission.

ACTION: Final rule.

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

SUMMARY: In this document, the Federal Communications Commission 
(Commission) describes the information that must be provided in 
periodic progress reports (FCC Form 2100--Schedule 387 (Transition 
Progress Report)) by full power and Class A television stations that 
are eligible to receive payment of relocation expenses from the TV 
Broadcast Relocation Fund in connection with their being assigned to a 
new channel through the Incentive Auction. The Commission previously 
determined that reimbursable stations must file reports showing how the 
disbursed funds have been spent and what portion of the stations' 
construction in complete. These Transition Progress Reports will help 
the Commission, broadcasters, those involved in construction of 
broadcast facilities, other interested parties, and the public to 
assess how disbursed funds have been spent and to monitor the 
construction of stations.

DATES: Effective February 2, 2017.

ADDRESSES: Federal Communications Commission, 445 12th Street SW., 
Washington, DC 20554.

FOR FURTHER INFORMATION CONTACT: Joyce Bernstein, 
Joyce.Bernstein@fcc.gov, (202) 418-1647, or Kevin Harding, 
Kevin.Harding@fcc.gov, (202) 418-7077.

SUPPLEMENTARY INFORMATION: This is a summary of the Commission's 
document, DA 17-34, MB Docket No. 16-306, GN Docket No. 12-268, 
released January 10, 2017. The complete text of this document is 
available for inspection and copying during normal business hours in 
the FCC Reference Information Center, Portals II, 445 12th Street SW., 
Room CY-A257, Washington, DC 20554. The complete text of this document 
is also available for download at http://transition.fcc.gov/Daily_Releases/Daily_Business/2017/db0110/DA-17-34A1.pdf.

Synopsis

    The Media Bureau (Bureau) announces that each full power and Class 
A television station that is eligible for reimbursement of its 
relocation costs from the TV Broadcast Relocation Fund established by 
the Middle Class Tax Relief and Job Creation Act of 2012 must 
periodically file an FCC Form 2100--Schedule 387 (Transition Progress 
Report) that is attached as Appendix A to the Public Notice. The 
appendix is available at https://apps.fcc.gov/edocs_public/attachmatch/DA-17-34A1.docx. Reimbursable stations must file Transition Progress 
Reports using the Commission's electronic filing system starting with 
first full calendar quarter after completion of the Incentive Auction 
and on a quarterly basis thereafter. In addition to these quarterly 
reports, reimbursable stations must file the reports: (1) 10 weeks 
before the end of their assigned construction deadline; (2) 10 days 
after they complete all work related to construction of their post-
auction facilities; and (3) five days after they cease broadcasting on 
their pre-auction channel. Once a station has filed Transition Progress 
Reports certifying that it has completed all work related to 
construction of its post-auction facilities and has ceased operating on 
its pre-auction channel, it will no longer be required to file reports.
    In the Incentive Auction R&O, the Federal Communications Commission 
(Commission) adopted rules and procedures for conducting the broadcast 
television incentive auction. See Expanding the Economic and Innovation 
Opportunities of Spectrum Through Incentive Auctions, GN Docket No. 12-
268, Report and Order, 79 FR 48442, August 15, 2014. The incentive 
auction is composed of a reverse auction in which broadcasters offer to 
voluntarily relinquish some or all of their spectrum usage rights, and 
a forward auction of new, flexible-use licenses suitable for providing 
mobile broadband services. The reverse auction incorporates a repacking 
process to reorganize the broadcast television bands so that the 
television stations that remain on the air after the transition will 
occupy a smaller portion of the ultra-high frequency (UHF) band, 
thereby clearing contiguous spectrum that will be repurposed as the 600 
MHz

[[Page 9010]]

Band for flexible wireless use. After bidding concludes, the Media and 
Wireless Telecommunications Bureaus will release the Closing and 
Reassignment Public Notice which, among other things, will announce the 
results of the repacking process and identify the channel reassignments 
of television channels. The Closing and Reassignment Public Notice will 
also establish the beginning of the 39-month post-auction transition 
period (transition period). By the end of the transition period, all 
stations reassigned to new channels must complete construction of their 
post-auction channel facilities, commence operation on their post-
auction channel, cease operation on their pre-auction channel, and file 
a license application.
    Most stations that incur costs as a result of being reassigned to 
new channels will be eligible for reimbursement from the Reimbursement 
Fund. In the Incentive Auction R&O, the Commission determined that 
reimbursable stations will be required, on a regular basis, to provide 
progress reports to the Commission showing how the disbursed funds have 
been spent and what portion of their construction is complete, and 
directed the Media Bureau to develop a form for such progress reports 
and set filing deadlines. The Media Bureau's Public Notice describes 
the information that must be provided in the Transition Progress 
Reports, and when and how the progress reports must be filed. The 
Transition Progress Report requires reimbursable stations to certify 
that certain steps towards construction of their post-auction 
facilities either have been completed or are not required. Some 
questions/items are meant to gather information regarding stations' 
completion of tasks necessary to meet major expenditure and 
construction milestones, such as taking delivery of specific pieces of 
equipment or completing all necessary permitting and tower work. Other 
questions require broadcasters to identify potential problems which 
they believe may make it difficult for them to meet their construction 
deadlines. These Transition Progress Reports will help the Commission, 
broadcasters, those involved in the construction of broadcast 
facilities, and other interested parties to assess how disbursed funds 
have been spent and to monitor the construction of stations.
    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 Office of Management and Budget (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.
    The Commission will send a copy of the document, DA 17-34, in a 
report to be sent to Congress and the Government Accountability Office 
pursuant to the Congressional Review Act, see 5 U.S.C. 801(a)(1)(A).
    Initial Regulatory Flexibility Act Analysis: As required by the 
Regulatory Flexibility Act of 1980, as amended (``RFA'') the Commission 
has prepared this Initial Regulatory Flexibility Analysis (``IRFA'') 
concerning the possible significant economic impact on small entities 
of the policies and rules proposed in the Public Notice (Progress 
Report Form PN). Written public comments are requested on this IRFA. 
Comments must be identified as responses to the IRFA and must be filed 
by the deadlines for comments provided on the first page of the 
Progress Report Form PN. The Commission will send a copy of the 
Progress Report Form PN, including this IRFA, to the Chief Counsel for 
Advocacy of the Small Business Administration (``SBA''). In addition, 
the Progress Report Form PN and IRFA (or summaries thereof) will be 
published in the Federal Register.
    The Regulatory Flexibility Act of 1980, as amended (``RFA''), 
requires that a regulatory flexibility analysis be prepared for notice 
and comment rule making proceedings, unless the agency certifies that 
``the rule will not, if promulgated, have a significant economic impact 
on a substantial number of small entities.'' The RFA generally defines 
the term ``small entity'' as having the same meaning as the terms 
``small business,'' ``small organization,'' and ``small governmental 
jurisdiction.'' In addition, the term ``small business'' has the same 
meaning as the term ``small business concern'' under the Small Business 
Act. A ``small business concern'' is one which: (1) Is independently 
owned and operated; (2) is not dominant in its field of operation; and 
(3) satisfies any additional criteria established by the Small Business 
Administration (SBA).

A. Need for, and Objectives of, the Proposed Rule Changes

    The Federal Communications Commission (Commission) adopted a 39-
month transition period during which television stations that are 
assigned to new channels in the incentive auction must construct their 
new facilities. The Commission determined that reassigned television 
stations that are eligible for reimbursement from the TV Broadcast 
Relocation Fund are required, on a regular basis, to provide progress 
reports to the Commission showing how the disbursed funds have been 
spent and what portion of construction is complete. The Commission 
directed the Media Bureau (Bureau) to develop a form for such progress 
reports and set the filing deadlines for such reports. The Progress 
Report Form PN describes the information that must be provided by these 
stations, and when and how the progress reports must be filed.
    The Bureau proposes to require that reassigned television stations 
that are not eligible for reimbursement from the TV Broadcast 
Relocation Fund provide the same progress reports to the Commission on 
the same schedule as that specified for stations eligible for 
reimbursement. The Transition Progress Report in Appendix A requires 
reassigned stations to certify that certain steps toward construction 
of their post-auction channel either have been completed or are not 
required, and to identify potential problems which they believe may 
make it difficult for them to meet their construction deadlines. The 
information in the progress reports will be used by the Commission, 
stations, and other interested parties to monitor the status of 
reassigned stations' construction during the 39-month transition 
period.

B. Legal Basis

    The proposed action is authorized pursuant to sections 1, 4, 301, 
303, 307, 308, 309, 310, 316, 319, and 403 of the Communications Act of 
1934, as amended, 47 U.S.C. 151, 154, 301, 303, 307, 308, 309, 310, 
316, 319, and 403.

C. Description and Estimate of the Number of Small Entities to Which 
the Proposed Rules Will Apply

    The RFA directs agencies to provide a description of, and where 
feasible, an estimate of the number of small entities that may be 
affected by the proposed rules, if adopted. The RFA 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

[[Page 9011]]

provide a description of such small entities, as well as an estimate of 
the number of such small entities, where feasible.
    Television Broadcasting. This economic census category ``comprises 
establishments primarily engaged in broadcasting images together with 
sound.'' The SBA has created the following small business size standard 
for such businesses: Those having $38.5 million or less in annual 
receipts. The 2007 U.S. Census indicates that 808 firms in this 
category operated in that year. Of that number, 709 had annual receipts 
of $25,000,000 or less, and 99 had annual receipts of more than 
$25,000,000. Because the Census has no additional classifications that 
could serve as a basis for determining the number of stations whose 
receipts exceeded $38.5 million in that year, we conclude that the 
majority of television broadcast stations were small under the 
applicable SBA size standard.
    Apart from the U.S. Census, the Commission has estimated the number 
of licensed commercial television stations to be 1,386 stations. Of 
this total, 1,221 stations (or about 88 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 July 2, 2014. In 
addition, the Commission has estimated the number of licensed 
noncommercial educational (NCE) television stations to be 395. NCE 
stations are non-profit, and therefore considered to be small entities. 
Therefore, we estimate that the majority of television broadcast 
stations are small entities.
    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, an 
element of the definition of ``small business'' is that the 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 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 to that extent.
    Class A TV Stations. The same SBA definition that applies to 
television broadcast stations would apply to licensees of Class A 
television stations. As noted above, the SBA has created the following 
small business size standard for this category: Those having $38.5 
million or less in annual receipts. The Commission has estimated the 
number of licensed Class A television stations to be 418. Given the 
nature of these services, we will presume that these licensees qualify 
as small entities under the SBA definition.

D. Description of Projected Reporting, Recordkeeping, and Other 
Compliance Requirements

    The Bureau proposes that reassigned stations that are not eligible 
for reimbursement file the Transition Progress Report in Appendix A on 
a quarterly basis, beginning for the first full quarter after the 
release of a public notice announcing the completion of the incentive 
auction, as well as 10 weeks before their construction deadline, 10 
days after they complete construction of their post-auction facility, 
and five days after they cease broadcasting on their pre-auction 
channel. Once a station has ceased operating on its pre-auction 
channel, it would no longer need to file reports. We seek comment on 
the possible burdens the reporting requirement would place on small 
entities. Entities, especially small businesses, are encouraged to 
quantify, if possible, the costs and benefits of the proposed reporting 
requirement.

E. Steps Taken To Minimize Significant Impact on Small Entities and 
Significant Alternatives Considered

    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 or reporting requirements under the rule for small entities; 
(3) the use of performance, rather than design, standard; and (4) an 
exemption from coverage of the rule, or any part thereof, for small 
entities.
    In general, alternatives to proposed rules or policies are 
discussed only when those rules pose a significant adverse economic 
impact on small entities. We believe the burdens of the proposed 
reporting requirement are minimal and, in any event, are outweighed by 
the potential benefits of allowing for monitoring of the post-auction 
transition. In particular, the intent is to allow the Commission, 
broadcasters, and other interested parties to more closely monitor that 
status of construction during the transition, and focus resources on 
ensuring successful completion of the transition by all reassigned 
stations and continuity of over-the-air television service. Although 
the proposal to require reassigned stations that are not eligible for 
reimbursement to file regular progress reports during the transition 
may impose additional burdens on these stations, we believe the 
benefits of the proposal (such as further facilitating the successful 
post-incentive auction transition) outweigh any burdens associated with 
compliance

F. Federal Rules That May Duplicate, Overlap, or Conflict With the 
Proposed Rule

    None.

Federal Communications Commission.
Thomas Horan,
Chief, Media Bureau.
[FR Doc. 2017-02218 Filed 2-1-17; 8:45 am]
 BILLING CODE 6712-01-P



                                                                  Federal Register / Vol. 82, No. 21 / Thursday, February 2, 2017 / Rules and Regulations                                          9009

                                                *       *     *       *      *                              Dated: January 23, 2017.                           business hours in the FCC Reference
                                                                                                         Karyn Temple Claggett,                                Information Center, Portals II, 445 12th
                                                PART 204—PRIVACY ACT: POLICIES                           Acting Register of Copyrights and Director            Street SW., Room CY–A257,
                                                AND PROCEDURES                                           of the U.S. Copyright Office.                         Washington, DC 20554. The complete
                                                                                                            Approved by:                                       text of this document is also available
                                                ■ 5. The authority citation for part 204                 Carla Hayden,                                         for download at http://
                                                continues to read as follows:                            Librarian of Congress.                                transition.fcc.gov/Daily_Releases/Daily_
                                                                                                         [FR Doc. 2017–02238 Filed 2–1–17; 8:45 am]
                                                                                                                                                               Business/2017/db0110/DA-17-34A1.pdf.
                                                    Authority: 17 U.S.C. 702; 5 U.S.C. 552(a).
                                                                                                         BILLING CODE 1410–30–P                                Synopsis
                                                ■   6. Revise § 204.7 to read as follows:
                                                                                                                                                                  The Media Bureau (Bureau)
                                                § 204.7 Request for correction or                                                                              announces that each full power and
                                                amendment of records.                                    FEDERAL COMMUNICATIONS                                Class A television station that is eligible
                                                                                                         COMMISSION                                            for reimbursement of its relocation costs
                                                   (a) Any individual may request the                                                                          from the TV Broadcast Relocation Fund
                                                correction or amendment of a record                      47 CFR Part 73                                        established by the Middle Class Tax
                                                pertaining to her or him. Requests for                   [MB Docket No. 16–306, GN Docket No. 12–              Relief and Job Creation Act of 2012 must
                                                the removal of personally identifiable                   268; DA 17–34]                                        periodically file an FCC Form 2100—
                                                information requested by the Copyright                                                                         Schedule 387 (Transition Progress
                                                Office as part of an application for                     Transition Progress Report Form and                   Report) that is attached as Appendix A
                                                copyright registration are governed by                   Filing Requirements for Stations                      to the Public Notice. The appendix is
                                                § 201.2(e) of this chapter. Requests for                 Eligible for Reimbursement From the                   available at https://apps.fcc.gov/edocs_
                                                the removal of extraneous personally                     TV Broadcast Relocation Fund                          public/attachmatch/DA-17-34A1.docx.
                                                identifiable information, such as                        AGENCY:  Federal Communications                       Reimbursable stations must file
                                                driver’s license numbers, social security                Commission.                                           Transition Progress Reports using the
                                                numbers, banking information, and                                                                              Commission’s electronic filing system
                                                                                                         ACTION: Final rule.
                                                credit card information from registration                                                                      starting with first full calendar quarter
                                                records are governed by § 201.2(f) of this               SUMMARY:    In this document, the Federal             after completion of the Incentive
                                                chapter. With respect to the correction                  Communications Commission                             Auction and on a quarterly basis
                                                or amendment of all other information                    (Commission) describes the information                thereafter. In addition to these quarterly
                                                contained in a copyright registration,                   that must be provided in periodic                     reports, reimbursable stations must file
                                                                                                         progress reports (FCC Form 2100—                      the reports: (1) 10 weeks before the end
                                                the set of procedures and related fees
                                                                                                         Schedule 387 (Transition Progress                     of their assigned construction deadline;
                                                are governed by 17 U.S.C. 408(d) and
                                                                                                         Report)) by full power and Class A                    (2) 10 days after they complete all work
                                                § 201.5 of this chapter. With respect to                                                                       related to construction of their post-
                                                requests to amend any other record that                  television stations that are eligible to
                                                                                                         receive payment of relocation expenses                auction facilities; and (3) five days after
                                                an individual believes is incomplete,                                                                          they cease broadcasting on their pre-
                                                                                                         from the TV Broadcast Relocation Fund
                                                inaccurate, irrelevant or untimely, the                                                                        auction channel. Once a station has
                                                                                                         in connection with their being assigned
                                                request shall be in writing and delivered                                                                      filed Transition Progress Reports
                                                                                                         to a new channel through the Incentive
                                                either by mail addressed to the U.S.                                                                           certifying that it has completed all work
                                                                                                         Auction. The Commission previously
                                                Copyright Office, Supervisory Copyright                  determined that reimbursable stations                 related to construction of its post-
                                                Information Specialist, Copyright                        must file reports showing how the                     auction facilities and has ceased
                                                Information Section, Attn: Privacy Act                   disbursed funds have been spent and                   operating on its pre-auction channel, it
                                                Request, P.O. Box 70400, Washington,                     what portion of the stations’                         will no longer be required to file reports.
                                                DC 20024–0400, or in person Monday                       construction in complete. These                          In the Incentive Auction R&O, the
                                                through Friday between the hours of                      Transition Progress Reports will help                 Federal Communications Commission
                                                8:30 a.m. and 5 p.m., eastern time,                      the Commission, broadcasters, those                   (Commission) adopted rules and
                                                except legal holidays, at Room LM–401,                   involved in construction of broadcast                 procedures for conducting the broadcast
                                                Library of Congress, U.S. Copyright                      facilities, other interested parties, and             television incentive auction. See
                                                Office, 101 Independence Avenue SE.,                     the public to assess how disbursed                    Expanding the Economic and
                                                Washington, DC 20559–6000. The                                                                                 Innovation Opportunities of Spectrum
                                                                                                         funds have been spent and to monitor
                                                                                                                                                               Through Incentive Auctions, GN Docket
                                                request shall explain why the individual                 the construction of stations.
                                                                                                                                                               No. 12–268, Report and Order, 79 FR
                                                believes the record to be incomplete,                    DATES: Effective February 2, 2017.
                                                                                                                                                               48442, August 15, 2014. The incentive
                                                inaccurate, irrelevant, or untimely.                     ADDRESSES: Federal Communications                     auction is composed of a reverse auction
                                                   (b) With respect to requests for the                  Commission, 445 12th Street SW.,                      in which broadcasters offer to
                                                correction or amendment of records that                  Washington, DC 20554.                                 voluntarily relinquish some or all of
                                                are governed by this section, the Office                 FOR FURTHER INFORMATION CONTACT:                      their spectrum usage rights, and a
                                                will respond within 10 working days                      Joyce Bernstein, Joyce.Bernstein@                     forward auction of new, flexible-use
                                                indicating to the requester that the                     fcc.gov, (202) 418–1647, or Kevin                     licenses suitable for providing mobile
                                                requested correction or amendment has                    Harding, Kevin.Harding@fcc.gov, (202)                 broadband services. The reverse auction
                                                been made or that it has been refused.                   418–7077.                                             incorporates a repacking process to
mstockstill on DSK3G9T082PROD with RULES




                                                If the requested correction or                           SUPPLEMENTARY INFORMATION: This is a                  reorganize the broadcast television
                                                amendment is refused, the Office’s                       summary of the Commission’s                           bands so that the television stations that
                                                response will indicate the reason for the                document, DA 17–34, MB Docket No.                     remain on the air after the transition
                                                refusal and the procedure available to                   16–306, GN Docket No. 12–268, released                will occupy a smaller portion of the
                                                the individual to appeal the refusal.                    January 10, 2017. The complete text of                ultra-high frequency (UHF) band,
                                                                                                         this document is available for                        thereby clearing contiguous spectrum
                                                                                                         inspection and copying during normal                  that will be repurposed as the 600 MHz


                                           VerDate Sep<11>2014    19:35 Feb 01, 2017   Jkt 241001   PO 00000   Frm 00025   Fmt 4700   Sfmt 4700   E:\FR\FM\02FER1.SGM   02FER1


                                                9010             Federal Register / Vol. 82, No. 21 / Thursday, February 2, 2017 / Rules and Regulations

                                                Band for flexible wireless use. After                   general public and the Office of                      new facilities. The Commission
                                                bidding concludes, the Media and                        Management and Budget (OMB) to                        determined that reassigned television
                                                Wireless Telecommunications Bureaus                     comment on the information collection                 stations that are eligible for
                                                will release the Closing and                            requirements contained in this                        reimbursement from the TV Broadcast
                                                Reassignment Public Notice which,                       document in a separate Federal Register               Relocation Fund are required, on a
                                                among other things, will announce the                   Notice, as required by the Paperwork                  regular basis, to provide progress reports
                                                results of the repacking process and                    Reduction Act of 1995, Public Law 104–                to the Commission showing how the
                                                identify the channel reassignments of                   13, see 44 U.S.C. 3507.                               disbursed funds have been spent and
                                                television channels. The Closing and                       The Commission will send a copy of                 what portion of construction is
                                                Reassignment Public Notice will also                    the document, DA 17–34, in a report to                complete. The Commission directed the
                                                establish the beginning of the 39-month                 be sent to Congress and the Government                Media Bureau (Bureau) to develop a
                                                post-auction transition period                          Accountability Office pursuant to the                 form for such progress reports and set
                                                (transition period). By the end of the                  Congressional Review Act, see 5 U.S.C.                the filing deadlines for such reports.
                                                transition period, all stations reassigned              801(a)(1)(A).                                         The Progress Report Form PN describes
                                                to new channels must complete                              Initial Regulatory Flexibility Act                 the information that must be provided
                                                construction of their post-auction                      Analysis: As required by the Regulatory               by these stations, and when and how
                                                channel facilities, commence operation                  Flexibility Act of 1980, as amended                   the progress reports must be filed.
                                                on their post-auction channel, cease                    (‘‘RFA’’) the Commission has prepared                    The Bureau proposes to require that
                                                operation on their pre-auction channel,                 this Initial Regulatory Flexibility                   reassigned television stations that are
                                                and file a license application.                         Analysis (‘‘IRFA’’) concerning the                    not eligible for reimbursement from the
                                                   Most stations that incur costs as a                  possible significant economic impact on               TV Broadcast Relocation Fund provide
                                                result of being reassigned to new                       small entities of the policies and rules              the same progress reports to the
                                                channels will be eligible for                           proposed in the Public Notice (Progress               Commission on the same schedule as
                                                reimbursement from the Reimbursement                    Report Form PN). Written public                       that specified for stations eligible for
                                                Fund. In the Incentive Auction R&O, the                 comments are requested on this IRFA.                  reimbursement. The Transition Progress
                                                Commission determined that                              Comments must be identified as                        Report in Appendix A requires
                                                reimbursable stations will be required,                 responses to the IRFA and must be filed               reassigned stations to certify that certain
                                                on a regular basis, to provide progress                 by the deadlines for comments provided                steps toward construction of their post-
                                                reports to the Commission showing how                   on the first page of the Progress Report              auction channel either have been
                                                the disbursed funds have been spent                     Form PN. The Commission will send a                   completed or are not required, and to
                                                and what portion of their construction                  copy of the Progress Report Form PN,                  identify potential problems which they
                                                is complete, and directed the Media                     including this IRFA, to the Chief                     believe may make it difficult for them to
                                                Bureau to develop a form for such                       Counsel for Advocacy of the Small                     meet their construction deadlines. The
                                                progress reports and set filing deadlines.              Business Administration (‘‘SBA’’). In                 information in the progress reports will
                                                The Media Bureau’s Public Notice                        addition, the Progress Report Form PN                 be used by the Commission, stations,
                                                describes the information that must be                  and IRFA (or summaries thereof) will be               and other interested parties to monitor
                                                provided in the Transition Progress                     published in the Federal Register.                    the status of reassigned stations’
                                                Reports, and when and how the                              The Regulatory Flexibility Act of                  construction during the 39-month
                                                progress reports must be filed. The                     1980, as amended (‘‘RFA’’), requires that             transition period.
                                                Transition Progress Report requires                     a regulatory flexibility analysis be
                                                                                                        prepared for notice and comment rule                  B. Legal Basis
                                                reimbursable stations to certify that
                                                certain steps towards construction of                   making proceedings, unless the agency                   The proposed action is authorized
                                                their post-auction facilities either have               certifies that ‘‘the rule will not, if                pursuant to sections 1, 4, 301, 303, 307,
                                                been completed or are not required.                     promulgated, have a significant                       308, 309, 310, 316, 319, and 403 of the
                                                Some questions/items are meant to                       economic impact on a substantial                      Communications Act of 1934, as
                                                gather information regarding stations’                  number of small entities.’’ The RFA                   amended, 47 U.S.C. 151, 154, 301, 303,
                                                completion of tasks necessary to meet                   generally defines the term ‘‘small                    307, 308, 309, 310, 316, 319, and 403.
                                                major expenditure and construction                      entity’’ as having the same meaning as
                                                                                                                                                              C. Description and Estimate of the
                                                milestones, such as taking delivery of                  the terms ‘‘small business,’’ ‘‘small
                                                                                                                                                              Number of Small Entities to Which the
                                                specific pieces of equipment or                         organization,’’ and ‘‘small governmental
                                                                                                                                                              Proposed Rules Will Apply
                                                completing all necessary permitting and                 jurisdiction.’’ In addition, the term
                                                tower work. Other questions require                     ‘‘small business’’ has the same meaning                  The RFA directs agencies to provide
                                                broadcasters to identify potential                      as the term ‘‘small business concern’’                a description of, and where feasible, an
                                                problems which they believe may make                    under the Small Business Act. A ‘‘small               estimate of the number of small entities
                                                it difficult for them to meet their                     business concern’’ is one which: (1) Is               that may be affected by the proposed
                                                construction deadlines. These                           independently owned and operated; (2)                 rules, if adopted. The RFA generally
                                                Transition Progress Reports will help                   is not dominant in its field of operation;            defines the term ‘‘small entity’’ as
                                                the Commission, broadcasters, those                     and (3) satisfies any additional criteria             having the same meaning as the terms
                                                involved in the construction of                         established by the Small Business                     ‘‘small business,’’ ‘‘small organization,’’
                                                broadcast facilities, and other interested              Administration (SBA).                                 and ‘‘small governmental jurisdiction.’’
                                                parties to assess how disbursed funds                                                                         In addition, the term ‘‘small business’’
                                                have been spent and to monitor the                      A. Need for, and Objectives of, the                   has the same meaning as the term
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                                                construction of stations.                               Proposed Rule Changes                                 ‘‘small business concern’’ under the
                                                   Paperwork Reduction Act of 1995                        The Federal Communications                          Small Business Act. A small business
                                                Analysis: This document contains new                    Commission (Commission) adopted a                     concern is one which: (1) Is
                                                or modified information collection                      39-month transition period during                     independently owned and operated; (2)
                                                requirements. The Commission, as part                   which television stations that are                    is not dominant in its field of operation;
                                                of its continuing effort to reduce                      assigned to new channels in the                       and (3) satisfies any additional criteria
                                                paperwork burdens, will invite the                      incentive auction must construct their                established by the SBA. Below, we


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                                                                 Federal Register / Vol. 82, No. 21 / Thursday, February 2, 2017 / Rules and Regulations                                               9011

                                                provide a description of such small                     are unable at this time to define or                  it has considered in reaching its
                                                entities, as well as an estimate of the                 quantify the criteria that would                      proposed approach, which may include
                                                number of such small entities, where                    establish whether a specific television               the following four alternatives (among
                                                feasible.                                               station is dominant in its field of                   others): (1) The establishment of
                                                   Television Broadcasting. This                        operation. Accordingly, the estimate of               differing compliance or reporting
                                                economic census category ‘‘comprises                    small businesses to which rules may                   requirements or timetables that take into
                                                establishments primarily engaged in                     apply does not exclude any television                 account the resources available to small
                                                broadcasting images together with                       station from the definition of a small                entities; (2) the clarification,
                                                sound.’’ The SBA has created the                        business on this basis and is therefore               consolidation, or simplification of
                                                following small business size standard                  possibly over-inclusive to that extent.               compliance or reporting requirements
                                                for such businesses: Those having $38.5                    Class A TV Stations. The same SBA                  under the rule for small entities; (3) the
                                                million or less in annual receipts. The                 definition that applies to television                 use of performance, rather than design,
                                                2007 U.S. Census indicates that 808                     broadcast stations would apply to                     standard; and (4) an exemption from
                                                firms in this category operated in that                 licensees of Class A television stations.
                                                                                                                                                              coverage of the rule, or any part thereof,
                                                year. Of that number, 709 had annual                    As noted above, the SBA has created the
                                                                                                                                                              for small entities.
                                                receipts of $25,000,000 or less, and 99                 following small business size standard
                                                had annual receipts of more than                        for this category: Those having $38.5                    In general, alternatives to proposed
                                                $25,000,000. Because the Census has no                  million or less in annual receipts. The               rules or policies are discussed only
                                                additional classifications that could                   Commission has estimated the number                   when those rules pose a significant
                                                serve as a basis for determining the                    of licensed Class A television stations to            adverse economic impact on small
                                                number of stations whose receipts                       be 418. Given the nature of these                     entities. We believe the burdens of the
                                                exceeded $38.5 million in that year, we                 services, we will presume that these                  proposed reporting requirement are
                                                conclude that the majority of television                licensees qualify as small entities under             minimal and, in any event, are
                                                broadcast stations were small under the                 the SBA definition.                                   outweighed by the potential benefits of
                                                applicable SBA size standard.                                                                                 allowing for monitoring of the post-
                                                   Apart from the U.S. Census, the                      D. Description of Projected Reporting,
                                                                                                        Recordkeeping, and Other Compliance                   auction transition. In particular, the
                                                Commission has estimated the number                                                                           intent is to allow the Commission,
                                                of licensed commercial television                       Requirements
                                                                                                                                                              broadcasters, and other interested
                                                stations to be 1,386 stations. Of this                     The Bureau proposes that reassigned                parties to more closely monitor that
                                                total, 1,221 stations (or about 88                      stations that are not eligible for                    status of construction during the
                                                percent) had revenues of $38.5 million                  reimbursement file the Transition                     transition, and focus resources on
                                                or less, according to Commission staff                  Progress Report in Appendix A on a                    ensuring successful completion of the
                                                review of the BIA Kelsey Inc. Media                     quarterly basis, beginning for the first              transition by all reassigned stations and
                                                Access Pro Television Database (BIA) on                 full quarter after the release of a public            continuity of over-the-air television
                                                July 2, 2014. In addition, the                          notice announcing the completion of the               service. Although the proposal to
                                                Commission has estimated the number                     incentive auction, as well as 10 weeks                require reassigned stations that are not
                                                of licensed noncommercial educational                   before their construction deadline, 10                eligible for reimbursement to file regular
                                                (NCE) television stations to be 395. NCE                days after they complete construction of              progress reports during the transition
                                                stations are non-profit, and therefore                  their post-auction facility, and five days            may impose additional burdens on these
                                                considered to be small entities.                        after they cease broadcasting on their                stations, we believe the benefits of the
                                                Therefore, we estimate that the majority                pre-auction channel. Once a station has               proposal (such as further facilitating the
                                                of television broadcast stations are small              ceased operating on its pre-auction                   successful post-incentive auction
                                                entities.                                               channel, it would no longer need to file
                                                   We note, however, that in assessing                                                                        transition) outweigh any burdens
                                                                                                        reports. We seek comment on the                       associated with compliance
                                                whether a business concern qualifies as                 possible burdens the reporting
                                                small under the above definition,                       requirement would place on small                      F. Federal Rules That May Duplicate,
                                                business (control) affiliations must be                 entities. Entities, especially small                  Overlap, or Conflict With the Proposed
                                                included. Our estimate, therefore, likely               businesses, are encouraged to quantify,               Rule
                                                overstates the number of small entities                 if possible, the costs and benefits of the
                                                that might be affected by our action                    proposed reporting requirement.                          None.
                                                because the revenue figure on which it                                                                        Federal Communications Commission.
                                                is based does not include or aggregate                  E. Steps Taken To Minimize Significant
                                                                                                        Impact on Small Entities and                          Thomas Horan,
                                                revenues from affiliated companies. In
                                                addition, an element of the definition of               Significant Alternatives Considered                   Chief, Media Bureau.
                                                ‘‘small business’’ is that the entity not                 The RFA requires an agency to                       [FR Doc. 2017–02218 Filed 2–1–17; 8:45 am]
                                                be dominant in its field of operation. We               describe any significant alternatives that            BILLING CODE 6712–01–P
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Document Created: 2017-02-02 00:55:24
Document Modified: 2017-02-02 00:55:24
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionRules and Regulations
ActionFinal rule.
DatesEffective February 2, 2017.
ContactJoyce Bernstein, [email protected], (202) 418-1647, or Kevin Harding, [email protected], (202) 418-7077.
FR Citation82 FR 9009 

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