83_FR_39765 83 FR 39610 - Emergency Alert System; Wireless Emergency Alerts

83 FR 39610 - Emergency Alert System; Wireless Emergency Alerts

FEDERAL COMMUNICATIONS COMMISSION

Federal Register Volume 83, Issue 155 (August 10, 2018)

Page Range39610-39621
FR Document2018-17096

In this document, the Federal Communications Commission (FCC or Commission) adopts changes to its rules governing the Emergency Alert System (EAS) to facilitate ``Live Code Tests'' of the EAS; permit use of the EAS Attention Signal and EAS Header Code tones in Public Service Announcements; implement certain alert authentication and validation procedures; and require reporting of false alerts.

Federal Register, Volume 83 Issue 155 (Friday, August 10, 2018)
[Federal Register Volume 83, Number 155 (Friday, August 10, 2018)]
[Rules and Regulations]
[Pages 39610-39621]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-17096]


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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Part 11

[PS Docket Nos. 15-94, 15-91; FCC 18-94]


Emergency Alert System; Wireless Emergency Alerts

AGENCY: Federal Communications Commission.

ACTION: Final rule.

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SUMMARY: In this document, the Federal Communications Commission (FCC 
or Commission) adopts changes to its rules governing the Emergency 
Alert System (EAS) to facilitate ``Live Code Tests'' of the EAS; permit 
use of the EAS Attention Signal and EAS Header Code

[[Page 39611]]

tones in Public Service Announcements; implement certain alert 
authentication and validation procedures; and require reporting of 
false alerts.

DATES: Effective September 10, 2018, except for the amendments to 47 
CFR 11.33 and 11.56, which are effective August 12, 2019, and the 
amendments to 47 CFR 11.45(b) and 11.61, which contain modifications to 
information collection requirements that were previously approved by 
the Office of Management and Budget (OMB). Once OMB has approved the 
modifications to these collections, the Commission will publish a 
document in the Federal Register announcing the effective date.

FOR FURTHER INFORMATION CONTACT: Gregory Cooke, Deputy Chief, Policy 
and Licensing Division, Public Safety and Homeland Security Bureau, at 
(202) 418-7452, or by email at [email protected]. For additional 
information concerning the information collection requirements 
contained in this document, send an email to [email protected] or contact 
Nicole Ongele, Office of Managing Director, Performance Evaluation and 
Records Management, 202-418-2991, or by email to [email protected].

SUPPLEMENTARY INFORMATION: This is a summary of the Commission's Report 
and Order (Order) in PS Docket Nos. 15-94 and 15-91, FCC 18-94, adopted 
on July 12, 2018, and released on July 13, 2018. The full text of this 
document is available for inspection and copying during normal business 
hours in the FCC Reference Center (Room CY-A257), 445 12th Street SW, 
Washington, DC 20554. The full text may also be downloaded at: 
www.fcc.gov.

Synopsis

    1. In the Order, the Commission adopts changes to its Part 11 EAS 
rules to improve the effectiveness and public utility of the EAS by 
facilitating more effective public safety tests and exercises using the 
EAS, implementing measures to help prevent distribution of false alerts 
over the EAS, and requiring reporting of false alerts.

I. Background

    2. The EAS is a national public warning system through which EAS 
Participants deliver alerts to the public to warn them of impending 
emergencies. The primary purpose of the EAS is to provide the President 
of the United States (President) with ``the capability to provide 
immediate communications and information to the general public at the 
National, State and Local Area levels during periods of national 
emergency.'' State and local authorities also use this common 
distribution architecture of the EAS to distribute voluntary weather-
related and other emergency alerts. Further, testing of the system at 
the state and local level increases the proficiency of local emergency 
personnel, provides insight into the system's functionality and 
effectiveness at the federal level, and enhances the public's ability 
to respond to EAS alerts when they occur. The integrity of the EAS is 
maintained through the Commission's EAS rules, which set forth the 
parameters and frequency with which EAS Participants must test the 
system, prohibit the unauthorized use of the EAS Attention Signal and 
codes, and require EAS Participants to keep their EAS equipment in good 
working order.

II. Discussion

A. Building Effective Alerting Exercise Programs

1. Live Code Testing
    3. Section 11.31(e) of the Commission's rules sets forth the event 
header codes that are used for alerts in specific emergency situations 
(e.g., TOR for tornado), as well as the specific test codes to be used 
for national periodic tests (NPT), required monthly tests (RMT), and 
required weekly tests (RWT). Section 11.45 of the EAS rules states that 
``[n]o person may transmit or cause to transmit the EAS codes or 
Attention Signal, or a recording or simulation thereof, in any 
circumstance other than in an actual National, State or Local Area 
emergency or authorized test of the EAS.'' EAS Participants regularly 
have sought waivers of these rules to use the event codes used for 
actual alerts (i.e., ``live'' event header codes) and the EAS Attention 
Signal to conduct local EAS public awareness and proficiency training 
exercises. In the Notice of Proposed Rulemaking (NPRM) in PS Docket 
Nos. 15-94 and 15-91, 81 FR 15792 (March 24, 2016), the Commission 
proposed amending the rules to allow EAS Participants to conduct tests 
that use live EAS header codes and the EAS Attention Signal under 
specific circumstances without submitting a waiver request. The 
Commission also proposed amending section 11.45 to exempt state-
designed EAS live code exercises from the prohibition against false or 
misleading use of the EAS Attention Signal.
    4. The Order amends section 11.45 to exempt EAS live code exercises 
from the prohibition against false or misleading use of the EAS 
Attention Signal. The Order also amends section 11.61 to include ``Live 
Code Tests'' as a separate category of alerting exercise that EAS 
Participants may undertake voluntarily, provided such live code tests 
are conducted in accordance with specific parameters. Specifically, EAS 
Participants may participate in live code tests where the entity 
conducting the test: (1) Notifies the public before the test that live 
event codes will be used, but that no emergency is, in fact, occurring; 
(2) to the extent technically feasible, states in the test message that 
the event is only a test; (3) coordinates the test among EAS 
Participants and with state and local emergency authorities, the 
relevant State Emergency Communication Committee (SECC) (or SECCs, if 
the test could affect multiple states), and first responder 
organizations, such as Public Safety Answering Points (PSAPs), police, 
and fire agencies; and (4) consistent with the Commission's rules, 
provides in widely accessible formats the required notification to the 
public that the test is not, in fact, a warning about an actual 
emergency. The Order requires that live code tests state in the alert 
message that the event is only a test as a further safeguard against 
public confusion, especially among those who are blind, deaf and 
hearing impaired.
    5. The Commission agrees with commenters that EAS Participants such 
as cable operators and broadcasters must be given sufficient notice of 
live code tests to benefit from them and to allow for planning and 
coordination to assess and mitigate the impact on downstream equipment 
and subscribers. Accordingly, the Commission expects test alert 
originators to coordinate with these stakeholders in good faith, and 
encourages them to provide the notice and coordination required by the 
rules adopted in the Order no later than two weeks prior to the test. 
As part of that coordination and outreach, the Commission encourages 
test alert originators to file notice of their intent to conduct a test 
in the EAS docket (PS Docket No. 15-94).
    6. Commenters generally support voluntary live code testing, and 
agree that such testing can yield important public safety benefits. The 
record also indicates that live code testing exercises can be tailored 
to improve public safety at the local or community level.
    7. To avoid customer exhaustion and any dissipation of the value of 
alerting that could come from over-testing the system to the public, 
the Order limits the number of live code tests that an alert originator 
may conduct under the new rules it adopts to two (2) within any 
calendar year. The Commission will continue to monitor the 
implementation of live code tests to determine whether additional 
measures are warranted.

[[Page 39612]]

2. EAS Public Service Announcements (PSAs)
    8. Section 11.46 of the Commission's rules provides that PSAs, 
while permissible, ``may not be a part of alerts or tests, and may not 
simulate or attempt to copy alert tones or codes.'' The Commission has 
granted requests from non-governmental organizations (NGOs) and FEMA 
for waivers of these rules to raise public awareness about the EAS 
through PSAs that use the EAS Attention Signal, and, in one instance, a 
simulation of header code sounds. In 2016, the Commission amended its 
rules to allow authorized entities to use the Attention Signal in PSAs 
about WEA. In the NPRM, the Commission proposed allowing EAS 
Participants to use EAS header codes and the Attention Signal in 
coordination with federal, state, and local government entities without 
a waiver, provided that the PSAs are presented in a non-misleading 
manner that does not cause technical issues for downstream equipment.
    9. The Order amends section 11.46 of the Commission's rules to 
allow, under certain circumstances, EAS Participants to use the 
Attention Signal in EAS PSAs (including commercially-sponsored 
announcements, infomercials, or programs) provided by federal, state, 
and local government entities, and NGOs, to raise public awareness 
about emergency alerting. This usage is only permitted if the PSA is 
presented in a non-misleading and technically harmless manner, 
including with the explicit statement that the Attention Signal is 
being used in the context of a PSA for the purpose of educating the 
viewing or listening public about emergency alerting. The Order also 
makes conforming changes to section 11.45.
    10. The Commission declines to allow live EAS header codes to be 
used in EAS PSAs because, as suggested by some commenters, EAS PSAs 
containing live EAS header codes could have unintended consequences, 
including triggering false alerts. However, the Commission will permit 
the simulation of header code audio tones developed by FEMA in PSAs to 
deliver the familiar sounds of live EAS header codes that the public 
associates with the EAS in a manner that would not trigger an actual 
alert. Entities that want to simulate the EAS header codes in their 
PSAs must do so using FEMA's simulation. The Commission observes that 
FEMA's simulation of the header code audio tones is subject to the 
restrictions of section 11.45 and therefore should not be used for 
purposes other than the EAS PSAs described in the Order. In adopting 
these PSA rules, the Commission notes agreement with commenters that 
EAS PSAs can be effective tools to raise public awareness of the EAS, 
particularly those that may be new to this country or have limited 
English proficiency, who do not recognize EAS tones and could benefit 
from learning about the EAS's benefits.
3. Effective Dates
    11. The Commission proposed that these rules would become effective 
30 days from the date of their publication in the Federal Register. No 
commenters opposed this time frame. Accordingly, the rule amendments 
for sections 11.45(a) and 11.46, both of which relate to PSAs, will 
become effective 30 days after publication of the Order in the Federal 
Register.
    12. The rule amendments for section 11.61, which cover ``Live Code 
Tests,'' will become effective on the date specified in a Commission 
notice published in the Federal Register announcing their approval 
under the Paperwork Reduction Act by the Office of Management and 
Budget, which date will be at least 30 days after the date that this 
Order and rules adopted herein are published in the Federal Register.

B. Ensuring EAS Readiness and Reliability

1. False Alert Reporting
    13. The Commission agrees with commenters that false alert 
reporting would benefit ongoing EAS reliability, and that having timely 
information about false alerts could help identify and mitigate 
problems with the EAS. Accordingly, the Commission revises its rules to 
require that no later than twenty-four (24) hours of an EAS 
Participant's discovery that it has transmitted or otherwise sent a 
false alert to the public, the EAS Participant send an email to the FCC 
Ops Center (at [email protected]), informing the Commission of the event 
and of any details that the EAS Participant may have concerning the 
event. If an EAS Participant has no actual knowledge that it has issued 
a false alert, then it would not be required to take any action.
2. Alert Authentication
    14. The Order revises section 11.56(c) to require that EAS 
Participants configure their systems to reject all CAP-formatted EAS 
messages that contain an invalid digital signature, thus helping to 
prevent the transmission of a false alert. All commenters addressing 
this issue supported the Commission's proposal and generally 
acknowledged the benefits of digitally signing CAP alerts. Although the 
Order requires EAS Participants to configure their systems in such a 
way as to reject alerts with invalid digital signatures, the Commission 
does not mandate the use of digital signatures at this time. With 
respect to broadcast-based, legacy alerts, the Commission believes it 
would be premature to adopt rules pertaining to specific authentication 
mechanisms for such alerts at this time. Based on the lack of consensus 
on an approach forward in the record, the Commission believes it would 
be prudent to await the recommendation from the Communications 
Security, Reliability and Interoperability Council VI on this issue 
rather than moving ahead with one of the originally proposed 
mechanisms.
3. Alert Validation
    15. Section 11.33(a)(10) specifies certain error detection and 
validation requirements for decoders. Currently, the Commission's rules 
do not require validation of alerts based upon the time period or year 
parameter in the ``time stamp'' portion of the header code, i.e., the 
portion that determines the correct date and time for the alert. 
Further, the Commission's rules do not require that valid alerts have 
an expiration time in the future. Thus, an alert's time stamp does not 
consistently serve as a filter through which officials can ensure an 
alert is confined to its relevant time frame.
    16. Alert time validation. The alert message validation 
requirements in the EAS rules require that EAS decoders validate alert 
messages by comparing the three EAS header tone bursts that commence 
all EAS alerts to ensure that at least two out of three match--the 
content of those header tones is not reviewed for incoming alert 
message validity. The Order amends section 11.33(a)(10) so that alert 
message validation confirms that the alert's expiration time is set to 
take place in the future, and that its origination time takes place no 
more than 15 minutes in the future.
    17. The Commission observes that commenters generally support 
proposals that reduce the potential for repeat broadcasts of outdated 
alerts by validation based on specific origination and expiration 
times, and support a 15-minute timeframe, and believe that such 
requirement will require minimal software updates. Based on the record, 
most EAS equipment already validates the time of EAS messages, blocking 
alerts that have expired. Remaining equipment can achieve this 
capability

[[Page 39613]]

by installing the necessary software as part of a regularly scheduled 
in-version equipment software update.
    18. Year Parameter. The Commission declines to require a year 
parameter in the time stamp section of the EAS Protocol. The record 
indicates that adding a year parameter requirement is not technically 
feasible without significant modification to the current EAS Protocol, 
as well as all associated equipment, which would be extremely expensive 
and burdensome, and would cause significant disruption to the NOAA 
Weather Radio infrastructure.
4. Compliance Timeline
    19. The Order adopts a one-year compliance timeframe from 
publication in the Federal Register. The record indicates that most EAS 
Participants already have EAS equipment capable of complying with these 
requirements. The Commission also observes that a one-year time frame 
would allow equipment manufacturers to develop and make available 
software updates to implement these requirements in deployed equipment 
that do not already meet these requirements.
    20. The rule amendments for section 11.45(b), which address the 
filing of false alert reports will become effective on the date 
specified in a Commission notice published in the Federal Register 
announcing their approval under the Paperwork Reduction Act by the 
Office of Management and Budget, which date will be at least 30 days 
after the date that this Order and rules adopted herein are published 
in the Federal Register.

C. Benefit-Cost Analysis

    21. The rule changes adopted in the Order reduce burdens by 
eliminating waiver filing time and costs. To the extent the Commission 
adopts new requirements, it does so in a minimally burdensome way that 
either imposes no additional costs or imposes only minimal costs. Other 
than the alert validation and authentication requirements, for which a 
one-year compliance timeframe is provided, only the new false alert 
reporting rule will involve new costs to EAS Participants. As discussed 
below, the Commission concludes that the benefits of these rule changes 
exceed their costs.
1. Benefits
    22. The rule changes adopted in the Order will reduce regulatory 
burden on EAS stakeholders. Waivers will no longer be needed for live 
code testing. The rule changes also reduce the regulatory burden on EAS 
Participants by allowing them to produce PSAs using EAS header codes 
and a simulated Attention Signal without requesting a waiver. This 
change will make the process of producing a PSA less costly, and 
promote greater proficiency in the use of EAS, both by EAS alert 
initiators and EAS Participants.
    23. These rule changes will also help prevent incidents of misuse 
and abuse of the EAS. The authentication and validation rule changes 
will require the use of EAS equipment's existing capabilities to help 
prevent misuse and abuse of the EAS, thus protecting its integrity and 
maintaining its credibility with the public and alerting officials. To 
provide an estimate of the value of the benefits of the rules adopted 
in the Order, the Commission turns to the overall value of the EAS. 
Scholars agree that public safety in the United States has improved 
over the years because its early warning systems for recurring hazards, 
such as lightning, floods, storms and heat waves, are continually 
improving. By reducing the frequency of false alerts, the rule changes 
adopted in the Order strengthen public confidence in the EAS, thus 
avoiding erosion in its overall value.
2. Costs
    24. The rule changes to section 11.61 for live code testing and to 
sections 11.45 and 11.46 for public service announcements do not impose 
any new costs. Rather, they codify requirements that were previously 
imposed on waivers granted by the Commission. Removing the requirement 
to file a waiver removes the need for legal and other staff time 
associated with filing a waiver. The new rules therefore eliminate any 
legal or administrative costs that were associated with filing waiver 
requests.
    25. The Commission estimates that compliance with the alert 
authentication and validation rule changes will involve only minimal 
costs to EAS Participants. Current EAS rules require that EAS 
Participants must have EAS equipment that is capable of being updated 
via software. According to the record, most EAS equipment deployed in 
the field is already configured to support the validation and 
authentication rule changes adopted in the Order. The one-year 
compliance period adopted for these rule changes will provide 
sufficient time for any necessary update to be deployed within a 
previously scheduled in-version equipment software update. In 
combination, these factors result in no incremental cost to EAS 
Participants for installing the update.
    26. With respect to the new false alert reporting requirement, the 
Commission concludes that the cost of reporting false alerts will be 
$11,600 per year, based upon an average of 290 EAS participants each 
spending 15 minutes to file one report.
    27. Therefore, based on the foregoing analysis, the Commission 
finds it reasonable to conclude that the benefits of the rules adopted 
in the Order will exceed the costs of their implementation. The rule 
changes will support greater testing and awareness of the EAS and 
promote the security of the EAS. They will also likely result in fewer 
false alerts, and thus fewer unnecessary 911 calls. The benefits of 
these rule changes will continue to accrue to the public each year, 
while the imposed costs are low.

III. Procedural Matters

A. Accessible Formats

    28. To request materials in accessible formats for people with 
disabilities (Braille, large print, electronic files, audio format), 
send an email to [email protected] or call the Consumer & Governmental 
Affairs Bureau at 202-418-0530 (voice), 202-418-0432 (tty).

B. Regulatory Flexibility Analysis

    29. As required by the Regulatory Flexibility Act of 1980, as 
amended (RFA), an Initial Regulatory Flexibility Analysis (IRFA) was 
incorporated in the Notice of Proposed Rulemaking (NPRM) in PS Docket 
Nos. 15-94 and 15-91, 81 FR 15792 (March 24, 2016). The Commission 
sought written public comment on the proposals in the NPRM, including 
comment on the IRFA. No comments were filed addressing the IRFA. This 
present Final Regulatory Flexibility Analysis (FRFA) conforms to the 
RFA.
1. Need for, and Objectives of, the Report and Order
    30. In today's Report and Order (Order), the Commission adopts 
rules that fall into two categories: (1) Building stronger alerting 
exercise programs and greater awareness of the EAS; and (2) taking 
steps to ensure the readiness and reliability of the EAS to protect it 
against accidental misuse and malicious intrusion.
    31. With respect to building effective public safety exercises and 
supporting greater testing and awareness of the EAS, the Commission 
permits the use of ``live code'' EAS public safety exercises to empower 
communities to meet their emergency preparedness needs and to provide 
opportunities for system verification and proficiency training. The 
Commission also allows EAS Participants to use the EAS Attention Signal 
and simulation of the header

[[Page 39614]]

codes in Public Service Announcements (PSAs) provided by federal, 
state, and local government entities, as well as non-governmental 
organizations (NGOs) to raise public awareness about emergency 
alerting.
    32. With respect to taking steps to ensure the readiness and 
reliability of the EAS, the Commission requires EAS Participants, upon 
discovery (i.e., actual knowledge) that they have transmitted or 
otherwise sent a false alert to the public, to provide minimal reports 
to the Commission. The Commission also requires EAS Participants to 
reject any CAP-formatted EAS messages that contain an invalid digital 
signature, and require EAS Participants to reject all EAS alerts that 
they receive with header code date/time data inconsistent with the 
current date and time.
2. Summary of Significant Issues Raised by Public Comments in Response 
to the IRFA
    33. There were no comments filed that specifically addressed the 
proposed rules and policies presented in the IRFA.
3. Response To Comments by the Chief Counsel for Advocacy of the Small 
Business Administration
    34. Pursuant to the Small Business Jobs Act of 2010, which amended 
the RFA, the Commission is required to respond to any comments filed by 
the Chief Counsel for Advocacy of the Small Business Administration 
(SBA), and to provide a detailed statement of any change made to the 
proposed rules as a result of those comments.
    35. The Chief Counsel did not file any comments in response to the 
proposed rules in this proceeding.
4. Description and Estimate of the Number of Small Entities to Which 
Rules Will Apply
    36. The RFA directs agencies to provide a description of and, where 
feasible, an estimate of the number of small entities that may be 
affected by the rules adopted, herein. The RFA generally defines the 
term ``small entity'' as having the same meaning as the terms ``small 
business,'' ``small organization,'' and ``small governmental 
jurisdiction.'' In addition, the term ``small business'' has the same 
meaning as the term ``small business concern'' under the Small Business 
Act. A ``small business concern'' is one which: (1) Is independently 
owned and operated; (2) is not dominant in its field of operation; and 
(3) satisfies any additional criteria established by the SBA.
    37. Small Businesses, Small Organizations, and Small Governmental 
Jurisdictions. The Commission's actions, over time, may affect small 
entities that are not easily categorized at present. The Commission 
therefore describes here, at the outset, three broad groups of small 
entities that could be directly affected herein. First, while there are 
industry specific size standards for small businesses that are used in 
the regulatory flexibility analysis, according to data from the SBA's 
Office of Advocacy, in general a small business is an independent 
business having fewer than 500 employees. These types of small 
businesses represent 99.9% of all businesses in the United States which 
translates to 28.8 million businesses.
    38. Next, the type of small entity described as a ``small 
organization'' is generally ``any not-for-profit enterprise which is 
independently owned and operated and is not dominant in its field.'' 
Nationwide, as of Aug. 2016, there were approximately 356,494 small 
organizations based on registration and tax data filed by nonprofits 
with the Internal Revenue Service (IRS).
    39. Finally, the small entity described as a ``small governmental 
jurisdiction'' is defined generally as ``governments of cities, 
counties, towns, townships, villages, school districts, or special 
districts, with a population of less than fifty thousand.'' U.S. Census 
Bureau data from the 2012 Census of Governments indicates that there 
were 90,056 local governmental jurisdictions consisting of general 
purpose governments and special purpose governments in the United 
States. Of this number there were 37,132 General purpose governments 
(county, municipal and town or township) with populations of less than 
50,000 and 12,184 Special purpose governments (independent school 
districts and special districts) with populations of less than 50,000. 
The 2012 U.S. Census Bureau data for most types of governments in the 
local government category shows that the majority of these governments 
have populations of less than 50,000. Based on this data the Commission 
estimates that at least 49,316 local government jurisdictions fall in 
the category of ``small governmental jurisdictions.''
    40. Radio Stations. This Economic Census category ``comprises 
establishments primarily engaged in broadcasting aural programs by 
radio to the public. Programming may originate in their own studio, 
from an affiliated network, or from external sources.'' The SBA has 
established a small business size standard for this category as firms 
having $38.5 million or less in annual receipts. Economic Census data 
for 2012 shows that 2,849 radio station firms operated during that 
year. Of that number, 2,806 operated with annual receipts of less than 
$25 million per year, 17 with annual receipts between $25 million and 
$49,999,999 million and 26 with annual receipts of $50 million or more. 
Therefore, based on the SBA's size standard the majority of such 
entities are small entities.
    41. According to Commission staff review of the BIA/Kelsey, LLC's 
Media Access Pro Radio Database as of January 2018, about 11,261 (or 
about 99.9 percent) of 11,383 commercial radio stations had revenues of 
$38.5 million or less and thus qualify as small entities under the SBA 
definition. The Commission has estimated the number of licensed 
commercial AM radio stations to be 4,639 stations and the number of 
commercial FM radio stations to be 6,744, for a total number of 11,383. 
The Commission notes that the Commission has also estimated the number 
of licensed NCE radio stations to be 4,120. Nevertheless, the 
Commission does not compile and otherwise does not have access to 
information on the revenue of NCE stations that would permit it to 
determine how many such stations would qualify as small entities.
    42. The Commission also notes, that in assessing whether a business 
entity qualifies as small under the above definition, business control 
affiliations must be included. The Commission's estimate therefore 
likely overstates the number of small entities that might be affected 
by its action, because the revenue figure on which it is based does not 
include or aggregate revenues from affiliated companies. In addition, 
to be determined a ``small business,'' an entity may not be dominant in 
its field of operation. The Commission further notes, that it is 
difficult at times to assess these criteria in the context of media 
entities, and the estimate of small businesses to which these rules may 
apply does not exclude any radio station from the definition of a small 
business on this basis, thus the Commission's estimate of small 
businesses may therefore be over-inclusive. Also, as noted above, an 
additional element of the definition of ``small business'' is that the 
entity must be independently owned and operated. The Commission notes 
that it is difficult at times to assess these criteria in the context 
of media entities and the estimates of small businesses to which they 
apply may be over-inclusive to this extent.
    43. Low-Power FM Stations. Low Power FM Stations are classified in 
the category of Radio Stations and are assigned the same NAICs Code as 
licensees of radio stations. This U.S.

[[Page 39615]]

industry, Radio Stations, comprises establishments primarily engaged in 
broadcasting aural programs by radio to the public. Programming may 
originate in their own studio, from an affiliated network, or from 
external sources. The SBA has established a small business size 
standard which consists of all radio stations whose annual receipts are 
$38.5 million dollars or less. U.S. Census data for 2012 indicates that 
2,849 radio station firms operated during that year. Of that number, 
2,806 operated with annual receipts of less than $25 million per year, 
17 with annual receipts between $25 million and $49,999,999 million and 
26 with annual receipts of $50 million or more. Based on U.S. Census 
data, the Commission concludes that the majority of Low Power FM 
Stations are small.
    44. Television Broadcasting. This Economic Census category 
``comprises establishments primarily engaged in broadcasting images 
together with sound.'' These establishments operate television 
broadcast studios and facilities for the programming and transmission 
of programs to the public. These establishments also produce or 
transmit visual programming to affiliated broadcast television 
stations, which in turn broadcast the programs to the public on a 
predetermined schedule. Programming may originate in their own studio, 
from an affiliated network, or from external sources. The SBA has 
created the following small business size standard for such businesses: 
Those having $38.5 million or less in annual receipts. The 2012 
Economic Census reports that 751 firms in this category operated in 
that year. Of that number, 656 had annual receipts of $25,000,000 or 
less, 25 had annual receipts between $25,000,000 and $49,999,999 and 70 
had annual receipts of $50,000,000 or more. Based on this data the 
Commission therefore estimates that the majority of commercial 
television broadcasters are small entities under the applicable SBA 
size standard.
    45. The Commission has estimated the number of licensed commercial 
television stations to be 1,378. Of this total, 1,258 stations (or 
about 91 percent) had revenues of $38.5 million or less, according to 
Commission staff review of the BIA Kelsey Inc. Media Access Pro 
Television Database (BIA) on November 16, 2017, and therefore these 
licensees qualify as small entities under the SBA definition. In 
addition, the Commission has estimated the number of licensed 
noncommercial educational (NCE) television stations to be 395. 
Notwithstanding, the Commission does not compile and otherwise does not 
have access to information on the revenue of NCE stations that would 
permit it to determine how many such stations would qualify as small 
entities. There are also 2,367 low power television stations, including 
Class A stations (LPTV) and 3,750 TV translator stations. Given the 
nature of these services, the Commission will presume that all of these 
entities qualify as small entities under the above SBA small business 
size standard.
    46. The Commission notes, however, that in assessing whether a 
business concern qualifies as ``small'' under the above definition, 
business (control) affiliations must be included. The Commission's 
estimate, therefore likely overstates the number of small entities that 
might be affected by the Commission's action, because the revenue 
figure on which it is based does not include or aggregate revenues from 
affiliated companies. In addition, another element of the definition of 
``small business'' requires that an entity not be dominant in its field 
of operation. The Commission is unable at this time to define or 
quantify the criteria that would establish whether a specific 
television broadcast station is dominant in its field of operation. 
Accordingly, the estimate of small businesses to which rules may apply 
does not exclude any television station from the definition of a small 
business on this basis and is therefore possibly over-inclusive. Also, 
as noted above, an additional element of the definition of ``small 
business'' is that the entity must be independently owned and operated. 
The Commission notes that it is difficult at times to assess these 
criteria in the context of media entities and its estimates of small 
businesses to which they apply may be over-inclusive to this extent.
    47. Wired Telecommunications Carriers. The U.S. Census Bureau 
defines this industry as ``establishments primarily engaged in 
operating and/or providing access to transmission facilities and 
infrastructure that they own and/or lease for the transmission of 
voice, data, text, sound, and video using wired communications 
networks. Transmission facilities may be based on a single technology 
or a combination of technologies. Establishments in this industry use 
the wired telecommunications network facilities that they operate to 
provide a variety of services, such as wired telephony services, 
including VoIP services, wired (cable) audio and video programming 
distribution, and wired broadband internet services. By exception, 
establishments providing satellite television distribution services 
using facilities and infrastructure that they operate are included in 
this industry.'' The SBA has developed a small business size standard 
for Wired Telecommunications Carriers, which consists of all such 
companies having 1,500 or fewer employees. U.S. Census Bureau data for 
2012 shows that there were 3,117 firms that operated that year. Of this 
total, 3,083 operated with fewer than 1,000 employees. Thus, under this 
size standard, the majority of firms in this industry can be considered 
small.
    48. Cable and Other Subscription Programming. This industry 
comprises establishments primarily engaged in operating studios and 
facilities for the broadcasting of programs on a subscription or fee 
basis. The broadcast programming is typically narrowcast in nature 
(e.g., limited format, such as news, sports, education, or youth-
oriented). These establishments produce programming in their own 
facilities or acquire programming from external sources. The 
programming material is usually delivered to a third party, such as 
cable systems or direct-to-home satellite systems, for transmission to 
viewers. The SBA size standard for this industry establishes as small, 
any company in this category which has annual receipts of $38.5 million 
or less. According to 2012 U.S. Census Bureau data, 367 firms operated 
for that entire year. Of that number, 319 operated with annual receipts 
of less than $25 million a year and 48 firms operated with annual 
receipts of $25 million or more. Based on this data, the Commission 
estimates that the majority of firms operating in this industry are 
small.
    49. Cable Companies and Systems (Rate Regulation). The Commission 
has developed its own small business size standards for the purpose of 
cable rate regulation. Under the Commission's rules, a ``small cable 
company'' is one serving 400,000 or fewer subscribers nationwide. 
Industry data indicate that there are currently 4,600 active cable 
systems in the United States. Of this total, all but nine cable 
operators nationwide are small under the 400,000-subscriber size 
standard. In addition, under the Commission's rate regulation rules, a 
``small system'' is a cable system serving 15,000 or fewer subscribers. 
Current Commission records show 4,600 cable systems nationwide. Of this 
total, 3,900 cable systems have fewer than 15,000 subscribers, and 700 
systems have 15,000 or more subscribers, based on the same records. 
Thus, under this standard as well, the Commission estimates that most 
cable systems are small entities.
    50. Cable System Operators (Telecom Act Standard). The 
Communications Act of 1934, as amended, also contains

[[Page 39616]]

a size standard for small cable system operators, which is ``a cable 
operator that, directly or through an affiliate, serves in the 
aggregate fewer than one percent of all subscribers in the United 
States and is not affiliated with any entity or entities whose gross 
annual revenues in the aggregate exceed $250,000,000.'' There are 
approximately 52,403,705 cable video subscribers in the United States 
today. Accordingly, an operator serving fewer than 524,037 subscribers 
shall be deemed a small operator if its annual revenues, when combined 
with the total annual revenues of all its affiliates, do not exceed 
$250 million in the aggregate. Based on available data, the Commission 
finds that all but nine incumbent cable operators are small entities 
under this size standard. The Commission notes that it neither requests 
nor collects information on whether cable system operators are 
affiliated with entities whose gross annual revenues exceed $250 
million. Although it seems certain that some of these cable system 
operators are affiliated with entities whose gross annual revenues 
exceed $250,000,000, the Commission is unable at this time to estimate 
with greater precision the number of cable system operators that would 
qualify as small cable operators under the definition in the 
Communications Act.
    51. Satellite Telecommunications. This category comprises firms 
``primarily engaged in providing telecommunications services to other 
establishments in the telecommunications and broadcasting industries by 
forwarding and receiving communications signals via a system of 
satellites or reselling satellite telecommunications.'' Satellite 
telecommunications service providers include satellite and earth 
station operators. The category has a small business size standard of 
$32.5 million or less in average annual receipts under SBA rules. For 
this category, U.S. Census Bureau data for 2012 shows that there were a 
total of 333 firms that operated for the entire year. Of this total, 
299 firms had annual receipts of less than $25 million. Consequently, 
the Commission estimates that the majority of satellite 
telecommunications providers are small entities.
    52. All Other Telecommunications. The ``All Other 
Telecommunications'' category is comprised of establishments primarily 
engaged in providing specialized telecommunications services, such as 
satellite tracking, communications telemetry, and radar station 
operation. This industry also includes establishments primarily engaged 
in providing satellite terminal stations and associated facilities 
connected with one or more terrestrial systems and capable of 
transmitting telecommunications to, and receiving telecommunications 
from, satellite systems. Establishments providing internet services or 
voice over internet protocol (VoIP) services via client-supplied 
telecommunications connections are also included in this industry. The 
SBA has developed a small business size standard for All Other 
Telecommunications, which consists of all such firms with annual 
receipts of $32.5 million or less. For this category, U.S. Census 
Bureau data for 2012 shows that there were 1,442 firms that operated 
for the entire year. Of those firms, a total of 1,400 had annual 
receipts less than $25 million and 42 firms had annual receipts of $25 
million to $49,999,999. Thus, the Commission estimates that the 
majority of ``All Other Telecommunications'' firms potentially affected 
by the Commission's action can be considered small.
    53. The Educational Broadcasting Services. Cable-based Educational 
Broadcasting Services have been included in the broad economic census 
category and Small Business Administration (SBA) size standard for 
Wired Telecommunications Carriers since 2007. Wired Telecommunications 
Carriers, which was developed for small wireline businesses is defined 
as follows: ``This industry comprises establishments primarily engaged 
in operating and/or providing access to transmission facilities and 
infrastructure that they own and/or lease for the transmission of 
voice, data, text, sound, and video using wired telecommunications 
networks. Transmission facilities may be based on a single technology 
or a combination of technologies. Establishments in this industry use 
the wired telecommunications network facilities that they operate to 
provide a variety of services, such as wired telephony services, 
including VoIP services; wired (cable) audio and video programming 
distribution; and wired broadband internet services.'' The SBA has 
developed a small business size standard for this category, which is 
all such businesses having 1,500 or fewer employees. U.S. Census data 
for 2012 shows that there were 3,117 firms that operated that year. Of 
this total, 3,083 operated with fewer than 1,000 employees. Thus, under 
this size standard, the majority of firms in this industry can be 
considered small. In addition to Census Bureau data, the Commission's 
internal records indicate that, as of October 2014, there were 2,206 
active EBS licenses. The Commission estimates that of these 2,206 
licenses, the majority are held by non-profit educational institutions 
and school districts, which are defined by statute as small businesses.
    54. Direct Broadcast Satellite (DBS) Service. DBS Service is a 
nationally distributed subscription service that delivers video and 
audio programming via satellite to a small parabolic ``dish'' antenna 
at the subscriber's location. DBS is included in the SBA's economic 
census category ``Wired Telecommunications Carriers.'' The Wired 
Telecommunications Carriers industry comprises establishments primarily 
engaged in operating and/or providing access to transmission facilities 
and infrastructure that they own and/or lease for the transmission of 
voice, data, text, sound, and video using wired telecommunications 
networks. Transmission facilities may be based on a single technology 
or combination of technologies. Establishments in this industry use the 
wired telecommunications network facilities that they operate to 
provide a variety of services, such as wired telephone services, 
including VoIP services, wired (cable) audio, and video programming 
distribution, and wired broadband internet services. By exception, 
establishments providing satellite television distribution services 
using facilities and infrastructure that they operate are included in 
this industry. The SBA determines that a wireline business is small if 
it has fewer than 1,500 employees. U.S. Census Bureau data for 2012 
indicates that 3,117 wireline companies were operational during that 
year. Of that number, 3,083 operated with fewer than 1,000 employees. 
Based on that data, the Commission concludes that the majority of 
wireline firms are small under the applicable standard. However, 
currently, only two entities provide DBS service, which requires a 
great deal of capital for operation: DIRECTV (owned by AT&T) and DISH 
Network. DIRECTV and DISH Network each report annual revenues that are 
in excess of the threshold for a small business. Accordingly, the 
Commission must conclude that internally developed FCC data are 
persuasive, that, in general, DBS service is provided only by large 
firms.
    55. Wireless Telecommunications Carriers (Except Satellite). This 
industry comprises establishments engaged in operating and maintaining 
switching and transmission facilities to provide communications via the 
airwaves. Establishments in this industry have

[[Page 39617]]

spectrum licenses and provide services using that spectrum, such as 
cellular services, paging services, wireless internet access, and 
wireless video services. The appropriate size standard under SBA rules 
is that such a business is small if it has 1,500 or fewer employees. 
For this industry, U.S. Census data for 2012 shows that there were 967 
firms that operated for the entire year. Of this total, 955 firms had 
fewer than 1,000 employees. Thus, under this category and the 
associated size standard, the Commission estimates that the majority of 
wireless telecommunications carriers (except satellite) are small 
entities.
    56. The Commission's own data--available in its Universal Licensing 
System--indicate that, as of October 25, 2016, there are 280 Cellular 
licensees that will be affected by the Commission's actions today. The 
Commission does not know how many of these licensees are small, as the 
Commission does not collect that information for these types of 
entities. Similarly, according to internally developed Commission data, 
413 carriers reported that they were engaged in the provision of 
wireless telephony, including cellular service, Personal Communications 
Service (PCS), and Specialized Mobile Radio (SMR) services. Of this 
total, an estimated 261 have 1,500 or fewer employees and 152 have more 
than 1,500 employees. Thus, using available data, the Commission 
estimates that the majority of wireless firms can be considered small.
    57. Broadband Personal Communications Service. The broadband 
personal communications service (PCS) spectrum is divided into six 
frequency blocks designated A through F, and the Commission has held 
auctions for each block. The Commission initially defined a ``small 
business'' for C- and F-Block licenses as an entity that has average 
gross revenues of $40 million or less in the three previous calendar 
years. For F-Block licenses, an additional small business size standard 
for ``very small business'' was added and is defined as an entity that, 
together with its affiliates, has average gross revenues of not more 
than $15 million for the preceding three calendar years. These 
standards defining ``small entity'', in the context of broadband PCS 
auctions, have been approved by the SBA. No small businesses within the 
SBA-approved small business size standards bid successfully for 
licenses in Blocks A and B. There were 90 winning bidders that claimed 
small business status in the first two C-Block auctions. A total of 93 
bidders that claimed small business status won approximately 40 percent 
of the 1,479 licenses in the first auction for the D-, E-, and F-
Blocks. On April 15, 1999, the Commission completed the reauction of 
347 C-, D-, E-, and F-Block licenses in Auction No. 22. Of the 57 
winning bidders in that auction, 48 claimed small business status and 
won 277 licenses.
    58. On January 26, 2001, the Commission completed the auction of 
422 C- and F-Block Broadband PCS licenses in Auction No. 35. Of the 35 
winning bidders in that auction, 29 claimed small business status. 
Subsequent events concerning Auction No. 35, including judicial and 
agency determinations, resulted in a total of 163 C- and F-Block 
licenses being available for grant. On February 15, 2005, the 
Commission completed an auction of 242 C-, D-, E-, and F-Block licenses 
in Auction No. 58. Of the 24 winning bidders in that auction, 16 
claimed small business status and won 156 licenses. On May 21, 2007, 
the Commission completed an auction of 33 licenses in the A-, C-, and 
F-Blocks in Auction No. 71. Of the 12 winning bidders in that auction, 
five claimed small business status and won 18 licenses. On August 20, 
2008, the Commission completed the auction of 20 C-, D-, E-, and F-
Block Broadband PCS licenses in Auction No. 78. Of the eight winning 
bidders for Broadband PCS licenses in that auction, six claimed small 
business status and won 14 licenses.
    59. Narrowband Personal Communications Services. Two auctions of 
narrowband personal communications services (PCS) licenses have been 
conducted. To ensure meaningful participation of small business 
entities in future auctions, the Commission has adopted a two-tiered 
small business size standard in the Narrowband PCS Second Report and 
Order. Through these auctions, the Commission has awarded a total of 41 
licenses, 11 of which were obtained by small businesses. A ``small 
business'' is an entity that, together with affiliates and controlling 
interests, has average gross revenues for the three preceding years of 
not more than $40 million. A ``very small business'' is an entity that, 
together with affiliates and controlling interests, has average gross 
revenues for the three preceding years of not more than $15 million. 
The SBA has approved these small business size standards.
    60. 700 MHz Guard Band Licensees. In 2000, in the 700 MHz Guard 
Band Order, the Commission adopted size standards for ``small 
businesses'' and ``very small businesses'' for purposes of determining 
their eligibility for special provisions such as bidding credits and 
installment payments. A small business in this service is an entity 
that, together with its affiliates and controlling principals, has 
average gross revenues not exceeding $40 million for the preceding 
three years. Additionally, a very small business is an entity that, 
together with its affiliates and controlling principals, has average 
gross revenues that are not more than $15 million for the preceding 
three years. SBA approval of these definitions is not required. An 
auction of 52 Major Economic Area (``MEA'') licenses commenced on 
September 6, 2000, and closed on September 21, 2000. Of the 104 
licenses auctioned, 96 licenses were sold to nine bidders. Five of 
these bidders were small businesses that won a total of 26 licenses. A 
second auction of 700 MHz Guard Band licenses commenced on February 13, 
2001, and closed on February 21, 2001. All eight of the licenses 
auctioned were sold to three bidders. One of these bidders was a small 
business that won a total of two licenses.
    61. Lower 700 MHz Band Licenses. The Commission previously adopted 
criteria for defining three groups of small businesses for purposes of 
determining their eligibility for special provisions such as bidding 
credits. The Commission defined a ``small business'' as an entity that, 
together with its affiliates and controlling principals, has average 
gross revenues not exceeding $40 million for the preceding three years. 
A ``very small business'' is defined as an entity that, together with 
its affiliates and controlling principals, has average gross revenues 
that are not more than $15 million for the preceding three years. 
Additionally, the lower 700 MHz Service had a third category of small 
business status for Metropolitan/Rural Service Area (MSA/RSA) 
licenses--``entrepreneur''--which is defined as an entity that, 
together with its affiliates and controlling principals, has average 
gross revenues that are not more than $3 million for the preceding 
three years. The SBA approved these small size standards. An auction of 
740 licenses (one license in each of the 734 MSAs/RSAs and one license 
in each of the six Economic Area Groupings (EAGs)) commenced on August 
27, 2002, and closed on September 18, 2002. Of the 740 licenses 
available for auction, 484 licenses were won by 102 winning bidders. 
Seventy-two of the winning bidders claimed small business, very small 
business or entrepreneur status and won a total of 329 licenses. A 
second auction

[[Page 39618]]

commenced on May 28, 2003, closed on June 13, 2003, and included 256 
licenses: 5 EAG licenses and 476 Cellular Market Area licenses. 
Seventeen winning bidders claimed small or very small business status 
and won 60 licenses, and nine winning bidders claimed entrepreneur 
status and won 154 licenses. On July 26, 2005, the Commission completed 
an auction of five licenses in the Lower 700 MHz band (Auction No. 60). 
There were three winning bidders for five licenses. All three winning 
bidders claimed small business status.
    62. In 2007, the Commission reexamined its rules governing the 700 
MHz band in the 700 MHz Second Report and Order. An auction of 700 MHz 
licenses commenced January 24, 2008, and closed on March 18, 2008, 
which included: 176 Economic Area licenses in the A-Block, 734 Cellular 
Market Area licenses in the B-Block, and 176 EA licenses in the E-
Block. Twenty winning bidders, claiming small business status (those 
with attributable average annual gross revenues that exceed $15 million 
and do not exceed $40 million for the preceding three years) won 49 
licenses. Thirty-three winning bidders claiming very small business 
status (those with attributable average annual gross revenues that do 
not exceed $15 million for the preceding three years) won 325 licenses.
    63. Upper 700 MHz Band Licenses. In the 700 MHz Second Report and 
Order, the Commission revised its rules regarding Upper 700 MHz 
licenses. On January 24, 2008, the Commission commenced Auction No. 73, 
in which several licenses in the Upper 700 MHz band were available for 
licensing: 12 Regional Economic Area Grouping licenses in the C-Block, 
and one nationwide license in the D-Block. The auction concluded on 
March 18, 2008, with three winning bidders claiming very small business 
status (those with attributable average annual gross revenues that do 
not exceed $15 million for the preceding three years) and winning five 
licenses.
    64. Advanced Wireless Services. AWS Services (1710-1755 MHz and 
2110-2155 MHz bands (AWS-1); 1915-1920 MHz, 1995-2000 MHz, 2020-2025 
MHz and 2175-2180 MHz bands (AWS-2); 2155-2175 MHz band (AWS-3)). For 
the AWS-1 bands, the Commission has defined a ``small business'' as an 
entity with average annual gross revenues for the preceding three years 
not exceeding $40 million, and a ``very small business'' as an entity 
with average annual gross revenues for the preceding three years not 
exceeding $15 million. For AWS-2 and AWS-3, although the Commission 
does not know for certain which entities are likely to apply for these 
frequencies, the Commission notes that the AWS-1 bands are comparable 
to those used for cellular service and personal communications service. 
The Commission has not yet adopted size standards for the AWS-2 or AWS-
3 bands, but proposes to treat both AWS-2 and AWS-3 similarly to 
broadband PCS service and AWS-1 service due to the comparable capital 
requirements and other factors, such as issues involved in relocating 
incumbents and developing markets, technologies, and services.
    65. Broadband Radio Service and Educational Broadband Service. 
Broadband Radio Service systems, previously referred to as Multipoint 
Distribution Service (MDS) and Multichannel Multipoint Distribution 
Service (MMDS) systems, and ``wireless cable,'' transmit video 
programming to subscribers and provide two-way high-speed data 
operations using the microwave frequencies of the Broadband Radio 
Service (BRS) and Educational Broadband Service (EBS) (previously 
referred to as the Instructional Television Fixed Service (ITFS)).
    66. BRS--In connection with the 1996 BRS auction, the Commission 
established a small business size standard as an entity that had annual 
average gross revenues of no more than $40 million in the previous 
three calendar years. The BRS auctions resulted in 67 successful 
bidders obtaining licensing opportunities for 493 Basic Trading Areas 
(BTAs). Of the 67 auction winners, 61 met the definition of a small 
business. BRS also includes licensees of stations authorized prior to 
the auction. At this time, the Commission estimates that of the 61 
small business BRS auction winners, 48 remain small business licensees. 
In addition to the 48 small businesses that hold BTA authorizations, 
there are approximately 392 incumbent BRS licensees that are considered 
small entities. After adding the number of small business auction 
licensees to the number of incumbent licensees not already counted, the 
Commission finds that there are currently approximately 440 BRS 
licensees that are defined as small businesses under either the SBA or 
the Commission's rules.
    67. In 2009, the Commission conducted Auction No. 86, the sale of 
78 licenses in the BRS areas. The Commission offered three levels of 
bidding credits: (i) A bidder with attributed average annual gross 
revenues that exceed $15 million and do not exceed $40 million for the 
preceding three years (small business) received a 15 percent discount 
on its winning bid; (ii) a bidder with attributed average annual gross 
revenues that exceed $3 million and do not exceed $15 million for the 
preceding three years (very small business) received a 25 percent 
discount on its winning bid; and (iii) a bidder with attributed average 
annual gross revenues that do not exceed $3 million for the preceding 
three years (entrepreneur) received a 35 percent discount on its 
winning bid. Auction No. 86 concluded in 2009 with the sale of 61 
licenses. Of the ten winning bidders, two bidders that claimed small 
business status won four licenses; one bidder that claimed very small 
business status won three licenses; and two bidders that claimed 
entrepreneur status won six licenses.
    68. EBS--Educational Broadband Service has been included within the 
broad economic census category and the SBA size standard for Wired 
Telecommunications Carriers since 2007. Wired Telecommunications 
Carriers are comprised of establishments primarily engaged in operating 
and/or providing access to transmission facilities and infrastructure 
that they own and/or lease for the transmission of voice, data, text, 
sound, and video using wired telecommunications networks. Transmission 
facilities may be based on a single technology or a combination of 
technologies. The SBA's small business size standard for this category 
is all such firms having 1,500 or fewer employees. U.S. Census data for 
2012 shows that there were 3,117 firms that operated that year. Of this 
total, 3,083 operated with fewer than 1,000 employees. Thus, under this 
size standard, the majority of firms in this industry can be considered 
small. In addition to Census Bureau data, the Commission's Universal 
Licensing System indicates that as of October 2014, there are 2,206 
active EBS licenses. The Commission estimates that of these 2,206 
licenses, the majority are held by non-profit educational institutions 
and school districts, which are by statute defined as small businesses.
    69. Wireless Communications Service. This service can be used for 
fixed, mobile, radiolocation, and digital audio broadcasting satellite 
uses. The Commission defined ``small business'' for the wireless 
communications services (WCS) auction as an entity with average gross 
revenues of $40 million for each of the three preceding years, and a 
``very small business'' as an entity with average gross revenues of $15 
million for each of the three preceding years. The SBA has approved 
these small business size standards. In the

[[Page 39619]]

Commission's auction for geographic area licenses in the WCS service 
there were seven winning bidders that qualified as ``very small 
business'' entities, and one that qualified as a ``small business'' 
entity.
    70. Radio and Television Broadcasting and Wireless Communications 
Equipment Manufacturing. This industry comprises establishments 
primarily engaged in manufacturing radio and television broadcast and 
wireless communications equipment. Examples of products made by these 
establishments are: Transmitting and receiving antennas, cable 
television equipment, GPS equipment, pagers, cellular phones, mobile 
communications equipment, and radio and television studio and 
broadcasting equipment. The SBA has established a small business size 
standard for this industry of 1,250 employees or less. U.S. Census data 
for 2012 shows that 841 establishments operated in this industry in 
that year. Of that number, 819 establishments operated with less than 
500 employees. Based on this data, the Commission concludes that a 
majority of manufacturers in this industry are small.
    71. Software Publishers. This industry comprises establishments 
primarily engaged in computer software publishing or publishing and 
reproduction. Establishments in this industry carry out operations 
necessary for producing and distributing computer software, such as 
designing, providing documentation, assisting in installation, and 
providing support services to software purchasers. These establishments 
may design, develop, and publish, or publish only. The SBA has 
established a size standard for this industry of annual receipts of 
$38.5 million per year. U.S. Census data for 2012 indicates that 5,079 
firms operated in that year. Of that number, 4,697 firms had annual 
receipts of $25 million or less. Based on that data, the Commission 
concludes that a majority of firms in this industry are small.
    72. NCE and Public Broadcast Stations. Non-commercial educational 
and public broadcast television stations fall within the U.S. Census 
Bureau's definition for Television Broadcasting. This industry 
comprises establishments primarily engaged in broadcasting images 
together with sound and operating television broadcasting studios and 
facilities for the programming and transmission of programs to the 
public. The SBA has created a small business size standard for 
Television Broadcasting entities, which is such firms having $38.5 
million or less in annual receipts. The 2012 Economic Census reports 
that 751 firms in this category operated in that year. Of that number, 
656 had annual receipts of $25,000,000 or less, 25 had annual receipts 
between $25,000,000 and $49,999,999 and 70 had annual receipts of 
$50,000,000 or more. Based on this data the Commission concludes that 
the majority of NCEs and Public Broadcast Stations are small entities 
under the applicable SBA size standard.
    73. According to Commission staff review of the BIA Kelsey Inc. 
Media Access Pro Television Database (BIA) as of November 16, 2017, 
approximately 1,258 of the 1,378 licensed commercial television 
stations (or about 91 percent) had revenues of $38.5 million or less, 
and therefore these licensees qualify as small entities under the SBA 
definition. The Commission also estimates that there are 395 licensed 
noncommercial educational NCE television stations. Notwithstanding, the 
Commission does not compile and otherwise does not have access to 
information on the revenue of NCE stations that would permit it to 
determine how many such stations would qualify as small entities. In 
addition to licensed commercial television stations and NCEs, there are 
also an estimated 2,367 low power television stations (LPTV), including 
Class A stations and 3,750 TV translator stations. Given the nature of 
these services, the Commission will presume that all of these entities 
qualify as small entities under the above SBA small business size 
standard.
    74. The Commission notes, however, that in assessing whether a 
business concern qualifies as small under the above definition, 
business (control) affiliations must be included. The Commission's 
estimate, therefore, likely overstates the number of small entities 
that might be affected by the Commission's action, because the revenue 
figure on which it is based does not include or aggregate revenues from 
affiliated companies. Moreover, the definition of ``small business'' 
also requires that an entity not be dominant in its field of operation 
and that the entity be independently owned and operated. The estimate 
of small businesses to which rules may apply does not exclude any 
television station from the definition of a small business on these 
bases and is therefore over-inclusive to that extent. Further, the 
Commission is unable at this time to define or quantify the criteria 
that would establish whether a specific television station is dominant 
in its field of operation. The Commission further notes that it is 
difficult at times to assess these criteria in the context of media 
entities, and therefore the Commission's estimates of small businesses 
to which they apply may be over-inclusive to this extent.
5. Description of Projected Reporting, Recordkeeping, and Other 
Compliance Requirements for Small Entities
    75. The Order allows EAS Participants to take part in live code EAS 
public safety exercises, provided that the entity conducting the test 
provides notification during the test to the extent technically 
feasible that there is no actual emergency and provides notice to the 
public and coordinates with EAS Participants, state and local emergency 
authorities, the SECC, and other entities before the test to inform the 
public and other affected entities that live event codes will be used 
and that no emergency is occurring. In addition, the Order allows EAS 
Participants to use the EAS Attention Signal and a harmless simulation 
of EAS header codes in PSAs provided by federal, state, and local 
government entities, as well as NGOs. These measures will obviate 
recurring costs associated with the filing of live code waiver requests 
(e.g., legal, administrative, printing, and mailing costs) and will not 
create any cost burdens for EAS Participants. The Order also requires 
that no later than twenty-four (24) hours of an EAS Participant's 
discovery (i.e., actual knowledge) that it has transmitted or otherwise 
sent a false alert to the public that the it send an email to the FCC 
Ops Center (at [email protected]) informing the Commission of the event 
and of any details that the EAS Participant may have concerning the 
event. This measure will help ensure that all alerting stakeholder have 
sufficient situational awareness of a false alert to quickly respond to 
and remediate the situation.
    76. The Order requires EAS Participants to reject all digitally-
signed CAP-formatted EAS alerts that are invalidly signed. It further 
requires EAS Participants to reject all EAS alerts that are received 
with header code date/time data inconsistent with the current date and 
time. Most EAS equipment deployed in the field already supports these 
authentication and validation rules, but the Commission anticipates 
that a small minority of EAS Participants may need to update software 
to comply with these rules. Such an update should result in minimal 
costs to EAS Participants, as it can be performed during a scheduled 
in-version equipment software update.

[[Page 39620]]

6. Steps Taken To Minimize the Significant Economic Impact on Small 
Entities, and Significant Alternatives Considered
    77. The RFA requires an agency to describe any significant 
alternatives that it has considered in reaching its approach, which may 
include the following four alternatives (among others): ``(1) the 
establishment of differing compliance or reporting requirements or 
timetables that take into account the resources available to small 
entities; (2) the clarification, consolidation, or simplification of 
compliance or reporting requirements under the rule for small entities; 
(3) the use of performance, rather than design, standards; and (4) and 
exemption from coverage of the rule, or any part thereof, for small 
entities.''
    78. The Commission does not expect its actions in the Order to have 
a significant economic impact on small entities. The rule changes to 
section 11.61 with respect to live code tests do not impose any new 
requirements or new costs for small entities or other EAS Participants. 
The steps taken by the Commission eliminating the waiver filing 
requirement will benefit small entities by reducing the need for legal 
and other staff time associated with filing a waiver, which will 
translate into cost reductions and have a positive economic impact. 
Thus, as an alternative to the existing process, the record supports 
the Commission's conclusion that removing the need for entities to 
request a waiver of the Commission's rules to conduct live code tests 
will reduce costs and remove regulatory burdens for small entities as 
well as other entities subject to these rules.
    79. The false alert reporting rules the Commission adopts today 
similarly impose minimal burdens on small entities. The reporting 
requirement is triggered only upon discovery of the false alert, allows 
twenty-four hours for the submission of the report and imposes no 
obligation to and investigate the false report. Further, the Commission 
recognizes that smaller entities often face particular challenges in 
achieving authentication and validation of EAS messages due to limited 
human, financial, or technical resources. Due, in part, to the 
potentially significant burdens that the originally-proposed 
requirements would pose, the Commission declines, at this time, to 
adopt certain of the proposals and defer consideration of others. Those 
the Commission adopts are unlikely to pose burdens that are not already 
incurred in the normal course of business.
    80. Finally, the Commission adopts implementation timeframes for 
each of the Commission's rules that are intended to allow EAS 
Participants to come into compliance with the Commission's rules in a 
manner that balances the need for improving EAS organization and 
effectiveness as soon as possible with any potential burdens that may 
be imposed by adoption of the Commission's proposals.
    81. The Commission concludes that the adopted mandates provide 
small entities as well as other EAS Participants with a sufficient 
measure of flexibility to account for technical and cost-related 
concerns. The Commission has determined that implementing these 
improvements to the EAS is technically feasible. In the event that 
small entities face unique circumstances that restrict their ability to 
comply with the Commission's rules, the Commission can address them 
through the waiver process.

C. Paperwork Reduction Act Analysis

    82. This document contains modified information collection 
requirements subject to the Paperwork Reduction Act of 1995 (PRA), 
Public Law 104-13. It will be submitted to the Office of Management and 
Budget (OMB) for review under section 3507(d) of the PRA. OMB, the 
general public, and other Federal agencies will be invited to comment 
on the new or modified information collection requirements contained in 
this proceeding. In addition, the Commission notes that pursuant to the 
Small Business Paperwork Relief Act of 2002, Public Law 107-198, see 44 
U.S.C. 3506(c)(4), the Commission previously sought specific comment on 
how the Commission might further reduce the information collection 
burden for small business concerns with fewer than 25 employees.

D. Congressional Review Act

    83. The Commission will send a copy of this Order in a report to be 
sent to Congress and the Government Accountability Office pursuant to 
the Congressional Review Act, see U.S.C. 801(a)(1)(A).

IV. Ordering Clauses

    84. Accordingly, it is ordered, pursuant to sections 1, 2, 4(i), 
4(o), 301, 303(r), 303(v), 307, 309, 335, 403, 624(g), 706, and 713 of 
the Communications Act of 1934, as amended, 47 U.S.C. 151, 152, 154(i), 
154(o), 301, 303(r), 303(v), 307, 309, 335, 403, 544(g), 606, and 613, 
as well as by sections 602(a),(b),(c), (f), 603, 604 and 606 of the 
WARN Act, 47 U.S.C. 1202(a), (b), (c), (f), 1203, 1204 and 1206, and 
the Twenty-First Century Communications and Video Accessibility Act of 
2010, Public Law 111-260 and Public Law 111-265, that this Report and 
Order is adopted.
    85. It is further ordered that the rule amendments adopted herein 
will become effective September 10, 2018, except that the amendments to 
sections 11.33 and 11.56 will become effective August 12, 2019, and the 
amendments to sections 11.45(b) and 11.61, which contain modifications 
to information collection requirements that are currently approved by 
the Office of Management and Budget (OMB), will become effective on the 
date specified in a Commission notice published in the Federal Register 
announcing their approval (which date shall not be less than 30 days 
after publication of this Report and Order in the Federal Register).
    86. It is further ordered that the Commission's Consumer and 
Governmental Affairs Bureau, Reference Information Center, shall send a 
copy of this Report and Order, including the Final Regulatory 
Flexibility Analysis, to the Chief Counsel for Advocacy of the Small 
Business Administration.

List of Subjects in 47 CFR Part 11

    Radio, Television.

Federal Communications Commission.
Marlene H. Dortch,
Secretary.

Final Rules

    For the reasons discussed in the preamble, the Federal 
Communications Commission amends 47 CFR part 11 as follows:

PART 11--EMERGENCY ALERT SYSTEM (EAS)

0
1. The authority citation for part 11 continues to read as follows:

    Authority:  47 U.S.C. 151, 154(i) and (o), 303(r), 544(g) and 
606.


0
2. Amend Sec.  11.33 by revising paragraph (a)(10) to read as follows:


Sec.  11.33  EAS Decoder.

    (a) * * *
    (10) Message Validity. An EAS Decoder must provide error detection 
and validation of the header codes of each message to ascertain if the 
message is valid. Header code comparisons may be accomplished through 
the use of a bit-by-bit compare or any other error detection and 
validation protocol. A header code must only be considered

[[Page 39621]]

valid when two of the three headers match exactly; the Origination 
Date/Time field (JJJHHMM) is not more than 15 minutes in the future and 
the expiration time (Origination Date/Time plus Valid Time TTTT) is in 
the future (i.e., current time at the EAS equipment when the alert is 
received is between origination time minus 15 minutes and expiration 
time). Duplicate messages must not be relayed automatically.
* * * * *

0
3. Revise Sec.  11.45 to read as follows:


Sec.  11.45  Prohibition of false or deceptive EAS transmissions.

    (a) No person may transmit or cause to transmit the EAS codes or 
Attention Signal, or a recording or simulation thereof, in any 
circumstance other than in an actual National, State or Local Area 
emergency or authorized test of the EAS; or as specified in Sec. Sec.  
10.520(d), 11.46, and 11.61 of this chapter.
    (b) No later than twenty-four (24) hours of an EAS Participant's 
discovery (i.e., actual knowledge) that it has transmitted or otherwise 
sent a false alert to the public, the EAS Participant send an email to 
the Commission at the FCC Ops Center at [email protected], informing the 
Commission of the event and of any details that the EAS Participant may 
have concerning the event.

0
4. Revise Sec.  11.46 to read as follows:


Sec.  11.46  EAS public service announcements.

    EAS Participants may use the EAS Attention Signal and a simulation 
of the EAS codes as provided by FEMA in EAS Public Service 
Announcements (PSAs) (including commercially-sponsored announcements, 
infomercials, or programs) provided by federal, state, and local 
government entities, or non-governmental organizations, to raise public 
awareness about emergency alerting. This usage is only permitted if the 
PSA is presented in a non-misleading and technically harmless manner, 
including with the explicit statement that the Attention Signal and EAS 
code simulation are being used in the context of a PSA for the purpose 
of educating the viewing or listening public about emergency alerting.

0
5. Amend Sec.  11.56 by redesignating paragraph (c) as paragraph (d) 
and adding new paragraph (c) to read as follows:


Sec.  11.56  Obligation to process CAP-formatted EAS messages.

* * * * *
    (c) EAS Participants shall configure their systems to reject all 
CAP-formatted EAS messages that include an invalid digital signature.
* * * * *

0
6. Amend Sec.  11.61 by adding paragraph (a)(5) to read as follows:


Sec.  11.61  Tests of EAS procedures.

    (a) * * *
    (5) Live Code Tests. EAS Participants may participate in no more 
than two (2) ``Live Code'' EAS Tests per calendar year that are 
conducted to exercise the EAS and raise public awareness for it, 
provided that the entity conducting the test:
    (i) Notifies the public before the test that live event codes will 
be used, but that no emergency is, in fact, occurring;
    (ii) To the extent technically feasible, states in the test message 
that the event is only a test;
    (iii) Coordinates the test among EAS Participants and with state 
and local emergency authorities, the relevant SECC (or SECCs, if the 
test could affect multiple states), and first responder organizations, 
such as PSAPs, police, and fire agencies); and,
    (iv) Consistent with Sec.  11.51, provides in widely accessible 
formats the notification to the public required by this subsection that 
the test is only a test, and is not a warning about an actual 
emergency.
* * * * *
[FR Doc. 2018-17096 Filed 8-9-18; 8:45 am]
 BILLING CODE 6712-01-P



                                             39610              Federal Register / Vol. 83, No. 155 / Friday, August 10, 2018 / Rules and Regulations

                                             Populations’’ (59 FR 7629, February 16,                   Dated: July 25, 2018.                                                                                              Parts per
                                                                                                                                                                                       Commodity
                                             1994).                                                  Michael Goodis,                                                                                                       million
                                                Since tolerances and exemptions that                 Director, Registration Division, Office of
                                                                                                     Pesticide Programs.                                                Lettuce, head ..............................               4.0
                                             are established on the basis of a petition
                                             under FFDCA section 408(d), such as                       Therefore, 40 CFR chapter I is                                      *          *        *               *               *
                                             the tolerances in this final rule, do not               amended as follows:                                                Nut, tree, group 14–12 ...............                 0.08
                                             require the issuance of a proposed rule,                                                                                   Onion, bulb, subgroup 3–07A ....                       0.50
                                             the requirements of the Regulatory                      PART 180—[AMENDED]                                                 Onion, green, subgroup 3–07B ..                          10
                                             Flexibility Act (RFA) (5 U.S.C. 601 et                                                                                     Orchardgrass, forage ..................                  30
                                                                                                     ■ 1. The authority citation for part 180                           Orchardgrass, hay ......................                 60
                                             seq.), do not apply.
                                                                                                     continues to read as follows:
                                                This action directly regulates growers,                                                                                    *           *              *               *        *
                                                                                                         Authority: 21 U.S.C. 321(q), 346a and 371.
                                             food processors, food handlers, and food                                                                                   Pea and bean, succulent
                                             retailers, not States or tribes, nor does               ■ 2. In § 180.669, add alphabetically the                            shelled, subgroup 6B ..............                  0.90
                                             this action alter the relationships or                  following commodities: Alfalfa, forage;                            Peanut ........................................        0.05
                                             distribution of power and                               Alfalfa, hay; Alfalfa, seed; Almond,                               Peanut, hay ................................             30
                                                                                                     hulls; Beet, sugar, dried pulp; Bluegrass,                         Potato, wet peel ..........................            0.10
                                             responsibilities established by Congress
                                             in the preemption provisions of FFDCA                   forage; Bluegrass, hay; Bromegrass,
                                                                                                     forage; Bromegrass, hay; Cotton, gin                                 *          *            *               *            *
                                             section 408(n)(4). As such, the Agency                                                                                     Ryegrass, forage ........................                  30
                                                                                                     byproducts; Cottonseed subgroup 20C;
                                             has determined that this action will not                                                                                   Ryegrass, hay .............................                60
                                                                                                     Fescue, forage; Fescue, hay; Leaf petiole
                                             have a substantial direct effect on States
                                                                                                     vegetable subgroup 22B; Lettuce, head;                               *          *          *               *              *
                                             or tribal governments, on the
                                                                                                     Nut, tree, group 14–12; Onion, bulb,                               Sunflower subgroup 20B ............                        2.0
                                             relationship between the national
                                                                                                     subgroup 3–07A; Onion, green,                                      Switchgrass, forage ....................                   30
                                             government and the States or tribal
                                                                                                     subgroup 3–07B; Orchardgrass, forage;                              Switchgrass, hay ........................                  60
                                             governments, or on the distribution of
                                                                                                     Orchardgrass, hay; Pea and bean,
                                             power and responsibilities among the                                                                                          *         *         *              *                *
                                                                                                     succulent shelled, subgroup 6B; Peanut;
                                             various levels of government or between                                                                                    Vegetable, brassica, head and
                                                                                                     Peanut, hay; Potato, wet peel; Ryegrass,
                                             the Federal Government and Indian                                                                                            stem, group 5–16 ....................                 2.0
                                                                                                     forage; Ryegrass, hay; Sunflower
                                             tribes. Thus, the Agency has determined                                                                                    Vegetable, cucurbit, group 9 ......                    0.30
                                                                                                     subgroup 20B; Switchgrass, forage;
                                             that Executive Order 13132, entitled                    Switchgrass, hay; Vegetable, brassica,
                                             ‘‘Federalism’’ (64 FR 43255, August 10,                                                                                       *         *           *               *             *
                                                                                                     head and stem, group 5–16; Vegetable,                              Vegetable, fruiting, group 8–10 ..                     0.70
                                             1999) and Executive Order 13175,                        cucurbit, group 9; Vegetable, fruiting,                            Vegetable, leafy, group 4–16,
                                             entitled ‘‘Consultation and Coordination                group 8–10; Vegetable, leafy, group 4–                               except lettuce, head ................                    30
                                             with Indian Tribal Governments’’ (65 FR                 16, except lettuce, head; Vegetable,                               Vegetable, leaves of root and
                                             67249, November 9, 2000) do not apply                   leaves of root and tuber, group 2;                                   tuber, group 2 .........................                 30
                                             to this action. In addition, this action                Vegetable, legume, edible podded,                                  Vegetable, legume, edible pod-
                                             does not impose any enforceable duty or                 subgroup 6A; Vegetable, root, subgroup                               ded, subgroup 6A ...................                  2.0
                                             contain any unfunded mandate as                                                                                            Vegetable, root, subgroup 1A ....                      0.50
                                                                                                     1A; and Vegetable, tuberous and corm,                              Vegetable, tuberous and corm,
                                             described under Title II of the Unfunded                subgroup 1C to the table in paragraph
                                             Mandates Reform Act (UMRA) (2 U.S.C.                                                                                         subgroup 1C ...........................              0.03
                                                                                                     (a) to read as follows:
                                             1501 et seq.).                                                                                                                 *             *             *            *         *
                                                This action does not involve any                     § 180.669 Picoxystrobin; tolerances for
                                                                                                     residues.
                                             technical standards that would require                                                                                     *       *        *        *         *
                                             Agency consideration of voluntary                           (a) * * *                                                      [FR Doc. 2018–17192 Filed 8–9–18; 8:45 am]
                                             consensus standards pursuant to section                                                                                    BILLING CODE 6560–50–P
                                                                                                                                                         Parts per
                                             12(d) of the National Technology                                       Commodity                             million
                                             Transfer and Advancement Act
                                             (NTTAA) (15 U.S.C. 272 note).                           Alfalfa, forage .............................                4.0   FEDERAL COMMUNICATIONS
                                                                                                     Alfalfa, hay ..................................              5.0   COMMISSION
                                             VII. Congressional Review Act                           Alfalfa, seed ................................               9.0
                                                                                                     Almond, hulls ..............................                 7.0   47 CFR Part 11
                                               Pursuant to the Congressional Review
                                             Act (5 U.S.C. 801 et seq.), EPA will                       *         *            *               *              *         [PS Docket Nos. 15–94, 15–91; FCC 18–
                                             submit a report containing this rule and                Beet, sugar, dried pulp ...............                      1.5   94]
                                             other required information to the U.S.                  Bluegrass, forage .......................                     30
                                             Senate, the U.S. House of                               Bluegrass, hay ............................                   60   Emergency Alert System; Wireless
                                             Representatives, and the Comptroller                    Bromegrass, forage ....................                       30   Emergency Alerts
                                                                                                     Bromegrass, hay ........................                      60
                                             General of the United States prior to                                                                                            Federal Communications
                                                                                                                                                                        AGENCY:
                                             publication of the rule in the Federal                     *         *        *              *                   *      Commission.
                                             Register. This action is not a ‘‘major                  Cotton, gin byproducts ...............                       20 ACTION: Final rule.
                                             rule’’ as defined by 5 U.S.C. 804(2).                   Cottonseed subgroup 20C .........                            2.0
                                                                                                                                                                              In this document, the Federal
                                                                                                                                                                        SUMMARY:
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                                             List of Subjects in 40 CFR Part 180                        *        *              *               *             *
                                                                                                                                                                   Communications Commission (FCC or
                                                                                                     Fescue, forage ............................                30
                                               Environmental protection,                             Fescue, hay ................................               60 Commission) adopts changes to its rules
                                             Administrative practice and procedure,                                                                                governing the Emergency Alert System
                                             Agricultural commodities, Pesticides                       *            *              *               *         *    (EAS) to facilitate ‘‘Live Code Tests’’ of
                                             and pests, Reporting and recordkeeping                  Leaf petiole vegetable subgroup                               the EAS; permit use of the EAS
                                             requirements.                                             22B ..........................................           20 Attention Signal and EAS Header Code



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                                                                Federal Register / Vol. 83, No. 155 / Friday, August 10, 2018 / Rules and Regulations                                         39611

                                             tones in Public Service Announcements;                  authorities also use this common                      that EAS Participants may undertake
                                             implement certain alert authentication                  distribution architecture of the EAS to               voluntarily, provided such live code
                                             and validation procedures; and require                  distribute voluntary weather-related and              tests are conducted in accordance with
                                             reporting of false alerts.                              other emergency alerts. Further, testing              specific parameters. Specifically, EAS
                                             DATES: Effective September 10, 2018,                    of the system at the state and local level            Participants may participate in live code
                                             except for the amendments to 47 CFR                     increases the proficiency of local                    tests where the entity conducting the
                                             11.33 and 11.56, which are effective                    emergency personnel, provides insight                 test: (1) Notifies the public before the
                                             August 12, 2019, and the amendments                     into the system’s functionality and                   test that live event codes will be used,
                                             to 47 CFR 11.45(b) and 11.61, which                     effectiveness at the federal level, and               but that no emergency is, in fact,
                                             contain modifications to information                    enhances the public’s ability to respond              occurring; (2) to the extent technically
                                             collection requirements that were                       to EAS alerts when they occur. The                    feasible, states in the test message that
                                             previously approved by the Office of                    integrity of the EAS is maintained                    the event is only a test; (3) coordinates
                                             Management and Budget (OMB). Once                       through the Commission’s EAS rules,                   the test among EAS Participants and
                                             OMB has approved the modifications to                   which set forth the parameters and                    with state and local emergency
                                             these collections, the Commission will                  frequency with which EAS Participants                 authorities, the relevant State
                                             publish a document in the Federal                       must test the system, prohibit the                    Emergency Communication Committee
                                             Register announcing the effective date.                 unauthorized use of the EAS Attention                 (SECC) (or SECCs, if the test could affect
                                             FOR FURTHER INFORMATION CONTACT:
                                                                                                     Signal and codes, and require EAS                     multiple states), and first responder
                                             Gregory Cooke, Deputy Chief, Policy                     Participants to keep their EAS                        organizations, such as Public Safety
                                             and Licensing Division, Public Safety                   equipment in good working order.                      Answering Points (PSAPs), police, and
                                             and Homeland Security Bureau, at (202)                                                                        fire agencies; and (4) consistent with the
                                                                                                     II. Discussion
                                                                                                                                                           Commission’s rules, provides in widely
                                             418–7452, or by email at
                                                                                                     A. Building Effective Alerting Exercise               accessible formats the required
                                             Gregory.Cooke@fcc.gov. For additional
                                                                                                     Programs                                              notification to the public that the test is
                                             information concerning the information
                                                                                                                                                           not, in fact, a warning about an actual
                                             collection requirements contained in                    1. Live Code Testing
                                                                                                                                                           emergency. The Order requires that live
                                             this document, send an email to PRA@                       3. Section 11.31(e) of the                         code tests state in the alert message that
                                             fcc.gov or contact Nicole Ongele, Office                Commission’s rules sets forth the event               the event is only a test as a further
                                             of Managing Director, Performance                       header codes that are used for alerts in              safeguard against public confusion,
                                             Evaluation and Records Management,                      specific emergency situations (e.g., TOR              especially among those who are blind,
                                             202–418–2991, or by email to PRA@                       for tornado), as well as the specific test            deaf and hearing impaired.
                                             fcc.gov.                                                codes to be used for national periodic                   5. The Commission agrees with
                                             SUPPLEMENTARY INFORMATION: This is a                    tests (NPT), required monthly tests                   commenters that EAS Participants such
                                             summary of the Commission’s Report                      (RMT), and required weekly tests                      as cable operators and broadcasters
                                             and Order (Order) in PS Docket Nos.                     (RWT). Section 11.45 of the EAS rules                 must be given sufficient notice of live
                                             15–94 and 15–91, FCC 18–94, adopted                     states that ‘‘[n]o person may transmit or             code tests to benefit from them and to
                                             on July 12, 2018, and released on July                  cause to transmit the EAS codes or                    allow for planning and coordination to
                                             13, 2018. The full text of this document                Attention Signal, or a recording or                   assess and mitigate the impact on
                                             is available for inspection and copying                 simulation thereof, in any circumstance               downstream equipment and subscribers.
                                             during normal business hours in the                     other than in an actual National, State               Accordingly, the Commission expects
                                             FCC Reference Center (Room CY–A257),                    or Local Area emergency or authorized                 test alert originators to coordinate with
                                             445 12th Street SW, Washington, DC                      test of the EAS.’’ EAS Participants                   these stakeholders in good faith, and
                                             20554. The full text may also be                        regularly have sought waivers of these                encourages them to provide the notice
                                             downloaded at: www.fcc.gov.                             rules to use the event codes used for                 and coordination required by the rules
                                                                                                     actual alerts (i.e., ‘‘live’’ event header            adopted in the Order no later than two
                                             Synopsis                                                codes) and the EAS Attention Signal to                weeks prior to the test. As part of that
                                                1. In the Order, the Commission                      conduct local EAS public awareness                    coordination and outreach, the
                                             adopts changes to its Part 11 EAS rules                 and proficiency training exercises. In                Commission encourages test alert
                                             to improve the effectiveness and public                 the Notice of Proposed Rulemaking                     originators to file notice of their intent
                                             utility of the EAS by facilitating more                 (NPRM) in PS Docket Nos. 15–94 and                    to conduct a test in the EAS docket (PS
                                             effective public safety tests and                       15–91, 81 FR 15792 (March 24, 2016),                  Docket No. 15–94).
                                             exercises using the EAS, implementing                   the Commission proposed amending the                     6. Commenters generally support
                                             measures to help prevent distribution of                rules to allow EAS Participants to                    voluntary live code testing, and agree
                                             false alerts over the EAS, and requiring                conduct tests that use live EAS header                that such testing can yield important
                                             reporting of false alerts.                              codes and the EAS Attention Signal                    public safety benefits. The record also
                                                                                                     under specific circumstances without                  indicates that live code testing exercises
                                             I. Background                                           submitting a waiver request. The                      can be tailored to improve public safety
                                                2. The EAS is a national public                      Commission also proposed amending                     at the local or community level.
                                             warning system through which EAS                        section 11.45 to exempt state-designed                   7. To avoid customer exhaustion and
                                             Participants deliver alerts to the public               EAS live code exercises from the                      any dissipation of the value of alerting
                                             to warn them of impending                               prohibition against false or misleading               that could come from over-testing the
                                             emergencies. The primary purpose of                     use of the EAS Attention Signal.                      system to the public, the Order limits
                                             the EAS is to provide the President of                     4. The Order amends section 11.45 to               the number of live code tests that an
daltland on DSKBBV9HB2PROD with RULES




                                             the United States (President) with ‘‘the                exempt EAS live code exercises from                   alert originator may conduct under the
                                             capability to provide immediate                         the prohibition against false or                      new rules it adopts to two (2) within
                                             communications and information to the                   misleading use of the EAS Attention                   any calendar year. The Commission will
                                             general public at the National, State and               Signal. The Order also amends section                 continue to monitor the implementation
                                             Local Area levels during periods of                     11.61 to include ‘‘Live Code Tests’’ as a             of live code tests to determine whether
                                             national emergency.’’ State and local                   separate category of alerting exercise                additional measures are warranted.


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                                             39612              Federal Register / Vol. 83, No. 155 / Friday, August 10, 2018 / Rules and Regulations

                                             2. EAS Public Service Announcements                     described in the Order. In adopting                   proposal and generally acknowledged
                                             (PSAs)                                                  these PSA rules, the Commission notes                 the benefits of digitally signing CAP
                                                8. Section 11.46 of the Commission’s                 agreement with commenters that EAS                    alerts. Although the Order requires EAS
                                             rules provides that PSAs, while                         PSAs can be effective tools to raise                  Participants to configure their systems
                                             permissible, ‘‘may not be a part of alerts              public awareness of the EAS,                          in such a way as to reject alerts with
                                             or tests, and may not simulate or                       particularly those that may be new to                 invalid digital signatures, the
                                             attempt to copy alert tones or codes.’’                 this country or have limited English                  Commission does not mandate the use
                                             The Commission has granted requests                     proficiency, who do not recognize EAS                 of digital signatures at this time. With
                                             from non-governmental organizations                     tones and could benefit from learning                 respect to broadcast-based, legacy alerts,
                                             (NGOs) and FEMA for waivers of these                    about the EAS’s benefits.                             the Commission believes it would be
                                             rules to raise public awareness about the                                                                     premature to adopt rules pertaining to
                                                                                                     3. Effective Dates                                    specific authentication mechanisms for
                                             EAS through PSAs that use the EAS
                                                                                                        11. The Commission proposed that                   such alerts at this time. Based on the
                                             Attention Signal, and, in one instance,
                                                                                                     these rules would become effective 30                 lack of consensus on an approach
                                             a simulation of header code sounds. In
                                                                                                     days from the date of their publication               forward in the record, the Commission
                                             2016, the Commission amended its rules
                                                                                                     in the Federal Register. No commenters                believes it would be prudent to await
                                             to allow authorized entities to use the
                                                                                                     opposed this time frame. Accordingly,                 the recommendation from the
                                             Attention Signal in PSAs about WEA. In
                                                                                                     the rule amendments for sections                      Communications Security, Reliability
                                             the NPRM, the Commission proposed
                                                                                                     11.45(a) and 11.46, both of which relate              and Interoperability Council VI on this
                                             allowing EAS Participants to use EAS
                                                                                                     to PSAs, will become effective 30 days                issue rather than moving ahead with
                                             header codes and the Attention Signal
                                                                                                     after publication of the Order in the                 one of the originally proposed
                                             in coordination with federal, state, and
                                                                                                     Federal Register.                                     mechanisms.
                                             local government entities without a
                                             waiver, provided that the PSAs are                         12. The rule amendments for section                3. Alert Validation
                                             presented in a non-misleading manner                    11.61, which cover ‘‘Live Code Tests,’’
                                                                                                     will become effective on the date                        15. Section 11.33(a)(10) specifies
                                             that does not cause technical issues for                                                                      certain error detection and validation
                                             downstream equipment.                                   specified in a Commission notice
                                                                                                     published in the Federal Register                     requirements for decoders. Currently,
                                                9. The Order amends section 11.46 of                                                                       the Commission’s rules do not require
                                             the Commission’s rules to allow, under                  announcing their approval under the
                                                                                                     Paperwork Reduction Act by the Office                 validation of alerts based upon the time
                                             certain circumstances, EAS Participants                                                                       period or year parameter in the ‘‘time
                                             to use the Attention Signal in EAS PSAs                 of Management and Budget, which date
                                                                                                     will be at least 30 days after the date               stamp’’ portion of the header code, i.e.,
                                             (including commercially-sponsored                                                                             the portion that determines the correct
                                             announcements, infomercials, or                         that this Order and rules adopted herein
                                                                                                     are published in the Federal Register.                date and time for the alert. Further, the
                                             programs) provided by federal, state,                                                                         Commission’s rules do not require that
                                             and local government entities, and                      B. Ensuring EAS Readiness and                         valid alerts have an expiration time in
                                             NGOs, to raise public awareness about                   Reliability                                           the future. Thus, an alert’s time stamp
                                             emergency alerting. This usage is only                                                                        does not consistently serve as a filter
                                             permitted if the PSA is presented in a                  1. False Alert Reporting
                                                                                                                                                           through which officials can ensure an
                                             non-misleading and technically                             13. The Commission agrees with                     alert is confined to its relevant time
                                             harmless manner, including with the                     commenters that false alert reporting                 frame.
                                             explicit statement that the Attention                   would benefit ongoing EAS reliability,                   16. Alert time validation. The alert
                                             Signal is being used in the context of a                and that having timely information                    message validation requirements in the
                                             PSA for the purpose of educating the                    about false alerts could help identify                EAS rules require that EAS decoders
                                             viewing or listening public about                       and mitigate problems with the EAS.                   validate alert messages by comparing
                                             emergency alerting. The Order also                      Accordingly, the Commission revises its               the three EAS header tone bursts that
                                             makes conforming changes to section                     rules to require that no later than                   commence all EAS alerts to ensure that
                                             11.45.                                                  twenty-four (24) hours of an EAS                      at least two out of three match—the
                                                10. The Commission declines to allow                 Participant’s discovery that it has                   content of those header tones is not
                                             live EAS header codes to be used in                     transmitted or otherwise sent a false                 reviewed for incoming alert message
                                             EAS PSAs because, as suggested by                       alert to the public, the EAS Participant              validity. The Order amends section
                                             some commenters, EAS PSAs                               send an email to the FCC Ops Center (at               11.33(a)(10) so that alert message
                                             containing live EAS header codes could                  FCCOPS@fcc.gov), informing the                        validation confirms that the alert’s
                                             have unintended consequences,                           Commission of the event and of any                    expiration time is set to take place in the
                                             including triggering false alerts.                      details that the EAS Participant may                  future, and that its origination time
                                             However, the Commission will permit                     have concerning the event. If an EAS                  takes place no more than 15 minutes in
                                             the simulation of header code audio                     Participant has no actual knowledge                   the future.
                                             tones developed by FEMA in PSAs to                      that it has issued a false alert, then it                17. The Commission observes that
                                             deliver the familiar sounds of live EAS                 would not be required to take any                     commenters generally support proposals
                                             header codes that the public associates                 action.                                               that reduce the potential for repeat
                                             with the EAS in a manner that would                                                                           broadcasts of outdated alerts by
                                             not trigger an actual alert. Entities that              2. Alert Authentication                               validation based on specific origination
                                             want to simulate the EAS header codes                      14. The Order revises section 11.56(c)             and expiration times, and support a 15-
                                             in their PSAs must do so using FEMA’s                   to require that EAS Participants                      minute timeframe, and believe that such
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                                             simulation. The Commission observes                     configure their systems to reject all                 requirement will require minimal
                                             that FEMA’s simulation of the header                    CAP-formatted EAS messages that                       software updates. Based on the record,
                                             code audio tones is subject to the                      contain an invalid digital signature, thus            most EAS equipment already validates
                                             restrictions of section 11.45 and                       helping to prevent the transmission of a              the time of EAS messages, blocking
                                             therefore should not be used for                        false alert. All commenters addressing                alerts that have expired. Remaining
                                             purposes other than the EAS PSAs                        this issue supported the Commission’s                 equipment can achieve this capability


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                                                                Federal Register / Vol. 83, No. 155 / Friday, August 10, 2018 / Rules and Regulations                                         39613

                                             by installing the necessary software as                 Attention Signal without requesting a                 alerts will be $11,600 per year, based
                                             part of a regularly scheduled in-version                waiver. This change will make the                     upon an average of 290 EAS participants
                                             equipment software update.                              process of producing a PSA less costly,               each spending 15 minutes to file one
                                               18. Year Parameter. The Commission                    and promote greater proficiency in the                report.
                                             declines to require a year parameter in                 use of EAS, both by EAS alert initiators                27. Therefore, based on the foregoing
                                             the time stamp section of the EAS                       and EAS Participants.                                 analysis, the Commission finds it
                                             Protocol. The record indicates that                        23. These rule changes will also help              reasonable to conclude that the benefits
                                             adding a year parameter requirement is                  prevent incidents of misuse and abuse                 of the rules adopted in the Order will
                                             not technically feasible without                        of the EAS. The authentication and                    exceed the costs of their
                                             significant modification to the current                 validation rule changes will require the              implementation. The rule changes will
                                             EAS Protocol, as well as all associated                 use of EAS equipment’s existing                       support greater testing and awareness of
                                             equipment, which would be extremely                     capabilities to help prevent misuse and               the EAS and promote the security of the
                                             expensive and burdensome, and would                     abuse of the EAS, thus protecting its                 EAS. They will also likely result in
                                             cause significant disruption to the                     integrity and maintaining its credibility             fewer false alerts, and thus fewer
                                             NOAA Weather Radio infrastructure.                      with the public and alerting officials. To            unnecessary 911 calls. The benefits of
                                                                                                     provide an estimate of the value of the               these rule changes will continue to
                                             4. Compliance Timeline                                  benefits of the rules adopted in the                  accrue to the public each year, while the
                                                19. The Order adopts a one-year                      Order, the Commission turns to the                    imposed costs are low.
                                             compliance timeframe from publication                   overall value of the EAS. Scholars agree
                                             in the Federal Register. The record                     that public safety in the United States               III. Procedural Matters
                                             indicates that most EAS Participants                    has improved over the years because its               A. Accessible Formats
                                             already have EAS equipment capable of                   early warning systems for recurring
                                             complying with these requirements. The                  hazards, such as lightning, floods,                     28. To request materials in accessible
                                             Commission also observes that a one-                    storms and heat waves, are continually                formats for people with disabilities
                                             year time frame would allow equipment                   improving. By reducing the frequency of               (Braille, large print, electronic files,
                                             manufacturers to develop and make                       false alerts, the rule changes adopted in             audio format), send an email to fcc504@
                                             available software updates to implement                 the Order strengthen public confidence                fcc.gov or call the Consumer &
                                             these requirements in deployed                          in the EAS, thus avoiding erosion in its              Governmental Affairs Bureau at 202–
                                             equipment that do not already meet                      overall value.                                        418–0530 (voice), 202–418–0432 (tty).
                                             these requirements.                                     2. Costs                                              B. Regulatory Flexibility Analysis
                                                20. The rule amendments for section
                                             11.45(b), which address the filing of                      24. The rule changes to section 11.61                29. As required by the Regulatory
                                             false alert reports will become effective               for live code testing and to sections                 Flexibility Act of 1980, as amended
                                             on the date specified in a Commission                   11.45 and 11.46 for public service                    (RFA), an Initial Regulatory Flexibility
                                             notice published in the Federal Register                announcements do not impose any new                   Analysis (IRFA) was incorporated in the
                                             announcing their approval under the                     costs. Rather, they codify requirements               Notice of Proposed Rulemaking (NPRM)
                                             Paperwork Reduction Act by the Office                   that were previously imposed on                       in PS Docket Nos. 15–94 and 15–91, 81
                                             of Management and Budget, which date                    waivers granted by the Commission.                    FR 15792 (March 24, 2016). The
                                             will be at least 30 days after the date                 Removing the requirement to file a                    Commission sought written public
                                             that this Order and rules adopted herein                waiver removes the need for legal and                 comment on the proposals in the NPRM,
                                             are published in the Federal Register.                  other staff time associated with filing a             including comment on the IRFA. No
                                                                                                     waiver. The new rules therefore                       comments were filed addressing the
                                             C. Benefit-Cost Analysis                                eliminate any legal or administrative                 IRFA. This present Final Regulatory
                                               21. The rule changes adopted in the                   costs that were associated with filing                Flexibility Analysis (FRFA) conforms to
                                             Order reduce burdens by eliminating                     waiver requests.                                      the RFA.
                                             waiver filing time and costs. To the                       25. The Commission estimates that
                                                                                                                                                           1. Need for, and Objectives of, the
                                             extent the Commission adopts new                        compliance with the alert
                                                                                                                                                           Report and Order
                                             requirements, it does so in a minimally                 authentication and validation rule
                                             burdensome way that either imposes no                   changes will involve only minimal costs                  30. In today’s Report and Order
                                             additional costs or imposes only                        to EAS Participants. Current EAS rules                (Order), the Commission adopts rules
                                             minimal costs. Other than the alert                     require that EAS Participants must have               that fall into two categories: (1) Building
                                             validation and authentication                           EAS equipment that is capable of being                stronger alerting exercise programs and
                                             requirements, for which a one-year                      updated via software. According to the                greater awareness of the EAS; and (2)
                                             compliance timeframe is provided, only                  record, most EAS equipment deployed                   taking steps to ensure the readiness and
                                             the new false alert reporting rule will                 in the field is already configured to                 reliability of the EAS to protect it
                                             involve new costs to EAS Participants.                  support the validation and                            against accidental misuse and malicious
                                             As discussed below, the Commission                      authentication rule changes adopted in                intrusion.
                                             concludes that the benefits of these rule               the Order. The one-year compliance                       31. With respect to building effective
                                             changes exceed their costs.                             period adopted for these rule changes                 public safety exercises and supporting
                                                                                                     will provide sufficient time for any                  greater testing and awareness of the
                                             1. Benefits                                             necessary update to be deployed within                EAS, the Commission permits the use of
                                                22. The rule changes adopted in the                  a previously scheduled in-version                     ‘‘live code’’ EAS public safety exercises
                                             Order will reduce regulatory burden on                                                                        to empower communities to meet their
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                                                                                                     equipment software update. In
                                             EAS stakeholders. Waivers will no                       combination, these factors result in no               emergency preparedness needs and to
                                             longer be needed for live code testing.                 incremental cost to EAS Participants for              provide opportunities for system
                                             The rule changes also reduce the                        installing the update.                                verification and proficiency training.
                                             regulatory burden on EAS Participants                      26. With respect to the new false alert            The Commission also allows EAS
                                             by allowing them to produce PSAs                        reporting requirement, the Commission                 Participants to use the EAS Attention
                                             using EAS header codes and a simulated                  concludes that the cost of reporting false            Signal and simulation of the header


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                                             39614              Federal Register / Vol. 83, No. 155 / Friday, August 10, 2018 / Rules and Regulations

                                             codes in Public Service Announcements                   Jurisdictions. The Commission’s actions,              operated during that year. Of that
                                             (PSAs) provided by federal, state, and                  over time, may affect small entities that             number, 2,806 operated with annual
                                             local government entities, as well as                   are not easily categorized at present.                receipts of less than $25 million per
                                             non-governmental organizations (NGOs)                   The Commission therefore describes                    year, 17 with annual receipts between
                                             to raise public awareness about                         here, at the outset, three broad groups of            $25 million and $49,999,999 million
                                             emergency alerting.                                     small entities that could be directly                 and 26 with annual receipts of $50
                                               32. With respect to taking steps to                   affected herein. First, while there are               million or more. Therefore, based on the
                                             ensure the readiness and reliability of                 industry specific size standards for                  SBA’s size standard the majority of such
                                             the EAS, the Commission requires EAS                    small businesses that are used in the                 entities are small entities.
                                             Participants, upon discovery (i.e., actual              regulatory flexibility analysis, according               41. According to Commission staff
                                             knowledge) that they have transmitted                   to data from the SBA’s Office of                      review of the BIA/Kelsey, LLC’s Media
                                             or otherwise sent a false alert to the                  Advocacy, in general a small business is              Access Pro Radio Database as of January
                                             public, to provide minimal reports to                   an independent business having fewer                  2018, about 11,261 (or about 99.9
                                             the Commission. The Commission also                     than 500 employees. These types of                    percent) of 11,383 commercial radio
                                             requires EAS Participants to reject any                 small businesses represent 99.9% of all               stations had revenues of $38.5 million
                                             CAP-formatted EAS messages that                         businesses in the United States which                 or less and thus qualify as small entities
                                             contain an invalid digital signature, and               translates to 28.8 million businesses.                under the SBA definition. The
                                             require EAS Participants to reject all                     38. Next, the type of small entity                 Commission has estimated the number
                                             EAS alerts that they receive with header                described as a ‘‘small organization’’ is              of licensed commercial AM radio
                                             code date/time data inconsistent with                   generally ‘‘any not-for-profit enterprise             stations to be 4,639 stations and the
                                             the current date and time.                              which is independently owned and                      number of commercial FM radio
                                                                                                     operated and is not dominant in its                   stations to be 6,744, for a total number
                                             2. Summary of Significant Issues Raised                 field.’’ Nationwide, as of Aug. 2016,                 of 11,383. The Commission notes that
                                             by Public Comments in Response to the                   there were approximately 356,494 small                the Commission has also estimated the
                                             IRFA                                                    organizations based on registration and               number of licensed NCE radio stations
                                                33. There were no comments filed                     tax data filed by nonprofits with the                 to be 4,120. Nevertheless, the
                                             that specifically addressed the proposed                Internal Revenue Service (IRS).                       Commission does not compile and
                                             rules and policies presented in the                        39. Finally, the small entity described            otherwise does not have access to
                                             IRFA.                                                   as a ‘‘small governmental jurisdiction’’              information on the revenue of NCE
                                                                                                     is defined generally as ‘‘governments of              stations that would permit it to
                                             3. Response To Comments by the Chief                    cities, counties, towns, townships,                   determine how many such stations
                                             Counsel for Advocacy of the Small                       villages, school districts, or special                would qualify as small entities.
                                             Business Administration                                 districts, with a population of less than                42. The Commission also notes, that
                                                34. Pursuant to the Small Business                   fifty thousand.’’ U.S. Census Bureau                  in assessing whether a business entity
                                             Jobs Act of 2010, which amended the                     data from the 2012 Census of                          qualifies as small under the above
                                             RFA, the Commission is required to                      Governments indicates that there were                 definition, business control affiliations
                                             respond to any comments filed by the                    90,056 local governmental jurisdictions               must be included. The Commission’s
                                             Chief Counsel for Advocacy of the Small                 consisting of general purpose                         estimate therefore likely overstates the
                                             Business Administration (SBA), and to                   governments and special purpose                       number of small entities that might be
                                             provide a detailed statement of any                     governments in the United States. Of                  affected by its action, because the
                                             change made to the proposed rules as a                  this number there were 37,132 General                 revenue figure on which it is based does
                                             result of those comments.                               purpose governments (county,                          not include or aggregate revenues from
                                                35. The Chief Counsel did not file any               municipal and town or township) with                  affiliated companies. In addition, to be
                                             comments in response to the proposed                    populations of less than 50,000 and                   determined a ‘‘small business,’’ an
                                             rules in this proceeding.                               12,184 Special purpose governments                    entity may not be dominant in its field
                                                                                                     (independent school districts and                     of operation. The Commission further
                                             4. Description and Estimate of the                      special districts) with populations of                notes, that it is difficult at times to
                                             Number of Small Entities to Which                       less than 50,000. The 2012 U.S. Census                assess these criteria in the context of
                                             Rules Will Apply                                        Bureau data for most types of                         media entities, and the estimate of small
                                                36. The RFA directs agencies to                      governments in the local government                   businesses to which these rules may
                                             provide a description of and, where                     category shows that the majority of                   apply does not exclude any radio station
                                             feasible, an estimate of the number of                  these governments have populations of                 from the definition of a small business
                                             small entities that may be affected by                  less than 50,000. Based on this data the              on this basis, thus the Commission’s
                                             the rules adopted, herein. The RFA                      Commission estimates that at least                    estimate of small businesses may
                                             generally defines the term ‘‘small                      49,316 local government jurisdictions                 therefore be over-inclusive. Also, as
                                             entity’’ as having the same meaning as                  fall in the category of ‘‘small                       noted above, an additional element of
                                             the terms ‘‘small business,’’ ‘‘small                   governmental jurisdictions.’’                         the definition of ‘‘small business’’ is that
                                             organization,’’ and ‘‘small governmental                   40. Radio Stations. This Economic                  the entity must be independently owned
                                             jurisdiction.’’ In addition, the term                   Census category ‘‘comprises                           and operated. The Commission notes
                                             ‘‘small business’’ has the same meaning                 establishments primarily engaged in                   that it is difficult at times to assess these
                                             as the term ‘‘small business concern’’                  broadcasting aural programs by radio to               criteria in the context of media entities
                                             under the Small Business Act. A ‘‘small                 the public. Programming may originate                 and the estimates of small businesses to
                                                                                                     in their own studio, from an affiliated
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                                             business concern’’ is one which: (1) Is                                                                       which they apply may be over-inclusive
                                             independently owned and operated; (2)                   network, or from external sources.’’ The              to this extent.
                                             is not dominant in its field of operation;              SBA has established a small business                     43. Low-Power FM Stations. Low
                                             and (3) satisfies any additional criteria               size standard for this category as firms              Power FM Stations are classified in the
                                             established by the SBA.                                 having $38.5 million or less in annual                category of Radio Stations and are
                                                37. Small Businesses, Small                          receipts. Economic Census data for 2012               assigned the same NAICs Code as
                                             Organizations, and Small Governmental                   shows that 2,849 radio station firms                  licensees of radio stations. This U.S.


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                                                                Federal Register / Vol. 83, No. 155 / Friday, August 10, 2018 / Rules and Regulations                                         39615

                                             industry, Radio Stations, comprises                     revenue of NCE stations that would                    operate are included in this industry.’’
                                             establishments primarily engaged in                     permit it to determine how many such                  The SBA has developed a small
                                             broadcasting aural programs by radio to                 stations would qualify as small entities.             business size standard for Wired
                                             the public. Programming may originate                   There are also 2,367 low power                        Telecommunications Carriers, which
                                             in their own studio, from an affiliated                 television stations, including Class A                consists of all such companies having
                                             network, or from external sources. The                  stations (LPTV) and 3,750 TV translator               1,500 or fewer employees. U.S. Census
                                             SBA has established a small business                    stations. Given the nature of these                   Bureau data for 2012 shows that there
                                             size standard which consists of all radio               services, the Commission will presume                 were 3,117 firms that operated that year.
                                             stations whose annual receipts are $38.5                that all of these entities qualify as small           Of this total, 3,083 operated with fewer
                                             million dollars or less. U.S. Census data               entities under the above SBA small                    than 1,000 employees. Thus, under this
                                             for 2012 indicates that 2,849 radio                     business size standard.                               size standard, the majority of firms in
                                             station firms operated during that year.                   46. The Commission notes, however,                 this industry can be considered small.
                                             Of that number, 2,806 operated with                     that in assessing whether a business                    48. Cable and Other Subscription
                                             annual receipts of less than $25 million                concern qualifies as ‘‘small’’ under the              Programming. This industry comprises
                                             per year, 17 with annual receipts                       above definition, business (control)                  establishments primarily engaged in
                                             between $25 million and $49,999,999                     affiliations must be included. The                    operating studios and facilities for the
                                             million and 26 with annual receipts of                  Commission’s estimate, therefore likely               broadcasting of programs on a
                                             $50 million or more. Based on U.S.                      overstates the number of small entities               subscription or fee basis. The broadcast
                                             Census data, the Commission concludes                   that might be affected by the                         programming is typically narrowcast in
                                             that the majority of Low Power FM                       Commission’s action, because the                      nature (e.g., limited format, such as
                                             Stations are small.                                     revenue figure on which it is based does              news, sports, education, or youth-
                                                44. Television Broadcasting. This                    not include or aggregate revenues from                oriented). These establishments produce
                                             Economic Census category ‘‘comprises                    affiliated companies. In addition,                    programming in their own facilities or
                                             establishments primarily engaged in                     another element of the definition of                  acquire programming from external
                                             broadcasting images together with                       ‘‘small business’’ requires that an entity            sources. The programming material is
                                             sound.’’ These establishments operate                   not be dominant in its field of operation.            usually delivered to a third party, such
                                             television broadcast studios and                        The Commission is unable at this time                 as cable systems or direct-to-home
                                             facilities for the programming and                      to define or quantify the criteria that               satellite systems, for transmission to
                                             transmission of programs to the public.                 would establish whether a specific                    viewers. The SBA size standard for this
                                             These establishments also produce or                    television broadcast station is dominant              industry establishes as small, any
                                             transmit visual programming to                          in its field of operation. Accordingly,               company in this category which has
                                             affiliated broadcast television stations,               the estimate of small businesses to                   annual receipts of $38.5 million or less.
                                             which in turn broadcast the programs to                 which rules may apply does not exclude                According to 2012 U.S. Census Bureau
                                             the public on a predetermined schedule.                 any television station from the                       data, 367 firms operated for that entire
                                             Programming may originate in their own                  definition of a small business on this                year. Of that number, 319 operated with
                                             studio, from an affiliated network, or                  basis and is therefore possibly over-                 annual receipts of less than $25 million
                                             from external sources. The SBA has                      inclusive. Also, as noted above, an                   a year and 48 firms operated with
                                             created the following small business                    additional element of the definition of               annual receipts of $25 million or more.
                                             size standard for such businesses: Those                ‘‘small business’’ is that the entity must            Based on this data, the Commission
                                             having $38.5 million or less in annual                  be independently owned and operated.                  estimates that the majority of firms
                                             receipts. The 2012 Economic Census                      The Commission notes that it is difficult             operating in this industry are small.
                                             reports that 751 firms in this category                 at times to assess these criteria in the                49. Cable Companies and Systems
                                             operated in that year. Of that number,                  context of media entities and its                     (Rate Regulation). The Commission has
                                             656 had annual receipts of $25,000,000                  estimates of small businesses to which                developed its own small business size
                                             or less, 25 had annual receipts between                 they apply may be over-inclusive to this              standards for the purpose of cable rate
                                             $25,000,000 and $49,999,999 and 70                      extent.                                               regulation. Under the Commission’s
                                             had annual receipts of $50,000,000 or                      47. Wired Telecommunications                       rules, a ‘‘small cable company’’ is one
                                             more. Based on this data the                            Carriers. The U.S. Census Bureau                      serving 400,000 or fewer subscribers
                                             Commission therefore estimates that the                 defines this industry as ‘‘establishments             nationwide. Industry data indicate that
                                             majority of commercial television                       primarily engaged in operating and/or                 there are currently 4,600 active cable
                                             broadcasters are small entities under the               providing access to transmission                      systems in the United States. Of this
                                             applicable SBA size standard.                           facilities and infrastructure that they               total, all but nine cable operators
                                                45. The Commission has estimated                     own and/or lease for the transmission of              nationwide are small under the 400,000-
                                             the number of licensed commercial                       voice, data, text, sound, and video using             subscriber size standard. In addition,
                                             television stations to be 1,378. Of this                wired communications networks.                        under the Commission’s rate regulation
                                             total, 1,258 stations (or about 91                      Transmission facilities may be based on               rules, a ‘‘small system’’ is a cable system
                                             percent) had revenues of $38.5 million                  a single technology or a combination of               serving 15,000 or fewer subscribers.
                                             or less, according to Commission staff                  technologies. Establishments in this                  Current Commission records show 4,600
                                             review of the BIA Kelsey Inc. Media                     industry use the wired                                cable systems nationwide. Of this total,
                                             Access Pro Television Database (BIA) on                 telecommunications network facilities                 3,900 cable systems have fewer than
                                             November 16, 2017, and therefore these                  that they operate to provide a variety of             15,000 subscribers, and 700 systems
                                             licensees qualify as small entities under               services, such as wired telephony                     have 15,000 or more subscribers, based
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                                             the SBA definition. In addition, the                    services, including VoIP services, wired              on the same records. Thus, under this
                                             Commission has estimated the number                     (cable) audio and video programming                   standard as well, the Commission
                                             of licensed noncommercial educational                   distribution, and wired broadband                     estimates that most cable systems are
                                             (NCE) television stations to be 395.                    internet services. By exception,                      small entities.
                                             Notwithstanding, the Commission does                    establishments providing satellite                      50. Cable System Operators (Telecom
                                             not compile and otherwise does not                      television distribution services using                Act Standard). The Communications
                                             have access to information on the                       facilities and infrastructure that they               Act of 1934, as amended, also contains


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                                             39616              Federal Register / Vol. 83, No. 155 / Friday, August 10, 2018 / Rules and Regulations

                                             a size standard for small cable system                  engaged in providing satellite terminal               that, as of October 2014, there were
                                             operators, which is ‘‘a cable operator                  stations and associated facilities                    2,206 active EBS licenses. The
                                             that, directly or through an affiliate,                 connected with one or more terrestrial                Commission estimates that of these
                                             serves in the aggregate fewer than one                  systems and capable of transmitting                   2,206 licenses, the majority are held by
                                             percent of all subscribers in the United                telecommunications to, and receiving                  non-profit educational institutions and
                                             States and is not affiliated with any                   telecommunications from, satellite                    school districts, which are defined by
                                             entity or entities whose gross annual                   systems. Establishments providing                     statute as small businesses.
                                             revenues in the aggregate exceed                        internet services or voice over internet                 54. Direct Broadcast Satellite (DBS)
                                             $250,000,000.’’ There are approximately                 protocol (VoIP) services via client-                  Service. DBS Service is a nationally
                                             52,403,705 cable video subscribers in                   supplied telecommunications                           distributed subscription service that
                                             the United States today. Accordingly, an                connections are also included in this                 delivers video and audio programming
                                             operator serving fewer than 524,037                     industry. The SBA has developed a                     via satellite to a small parabolic ‘‘dish’’
                                             subscribers shall be deemed a small                     small business size standard for All                  antenna at the subscriber’s location.
                                             operator if its annual revenues, when                   Other Telecommunications, which                       DBS is included in the SBA’s economic
                                             combined with the total annual                          consists of all such firms with annual                census category ‘‘Wired
                                             revenues of all its affiliates, do not                  receipts of $32.5 million or less. For this           Telecommunications Carriers.’’ The
                                             exceed $250 million in the aggregate.                   category, U.S. Census Bureau data for                 Wired Telecommunications Carriers
                                             Based on available data, the                            2012 shows that there were 1,442 firms                industry comprises establishments
                                             Commission finds that all but nine                      that operated for the entire year. Of                 primarily engaged in operating and/or
                                             incumbent cable operators are small                     those firms, a total of 1,400 had annual              providing access to transmission
                                             entities under this size standard. The                  receipts less than $25 million and 42                 facilities and infrastructure that they
                                             Commission notes that it neither                        firms had annual receipts of $25 million              own and/or lease for the transmission of
                                             requests nor collects information on                    to $49,999,999. Thus, the Commission                  voice, data, text, sound, and video using
                                             whether cable system operators are                      estimates that the majority of ‘‘All Other            wired telecommunications networks.
                                             affiliated with entities whose gross                    Telecommunications’’ firms potentially                Transmission facilities may be based on
                                             annual revenues exceed $250 million.                    affected by the Commission’s action can               a single technology or combination of
                                             Although it seems certain that some of                  be considered small.                                  technologies. Establishments in this
                                             these cable system operators are                                                                              industry use the wired
                                                                                                        53. The Educational Broadcasting                   telecommunications network facilities
                                             affiliated with entities whose gross
                                                                                                     Services. Cable-based Educational                     that they operate to provide a variety of
                                             annual revenues exceed $250,000,000,
                                                                                                     Broadcasting Services have been                       services, such as wired telephone
                                             the Commission is unable at this time to
                                                                                                     included in the broad economic census                 services, including VoIP services, wired
                                             estimate with greater precision the
                                                                                                     category and Small Business                           (cable) audio, and video programming
                                             number of cable system operators that
                                                                                                     Administration (SBA) size standard for                distribution, and wired broadband
                                             would qualify as small cable operators
                                                                                                     Wired Telecommunications Carriers                     internet services. By exception,
                                             under the definition in the
                                                                                                     since 2007. Wired Telecommunications                  establishments providing satellite
                                             Communications Act.
                                                51. Satellite Telecommunications.                    Carriers, which was developed for small               television distribution services using
                                             This category comprises firms                           wireline businesses is defined as                     facilities and infrastructure that they
                                             ‘‘primarily engaged in providing                        follows: ‘‘This industry comprises                    operate are included in this industry.
                                             telecommunications services to other                    establishments primarily engaged in                   The SBA determines that a wireline
                                             establishments in the                                   operating and/or providing access to                  business is small if it has fewer than
                                             telecommunications and broadcasting                     transmission facilities and infrastructure            1,500 employees. U.S. Census Bureau
                                             industries by forwarding and receiving                  that they own and/or lease for the                    data for 2012 indicates that 3,117
                                             communications signals via a system of                  transmission of voice, data, text, sound,             wireline companies were operational
                                             satellites or reselling satellite                       and video using wired                                 during that year. Of that number, 3,083
                                             telecommunications.’’ Satellite                         telecommunications networks.                          operated with fewer than 1,000
                                             telecommunications service providers                    Transmission facilities may be based on               employees. Based on that data, the
                                             include satellite and earth station                     a single technology or a combination of               Commission concludes that the majority
                                             operators. The category has a small                     technologies. Establishments in this                  of wireline firms are small under the
                                             business size standard of $32.5 million                 industry use the wired                                applicable standard. However,
                                             or less in average annual receipts under                telecommunications network facilities                 currently, only two entities provide DBS
                                             SBA rules. For this category, U.S.                      that they operate to provide a variety of             service, which requires a great deal of
                                             Census Bureau data for 2012 shows that                  services, such as wired telephony                     capital for operation: DIRECTV (owned
                                             there were a total of 333 firms that                    services, including VoIP services; wired              by AT&T) and DISH Network. DIRECTV
                                             operated for the entire year. Of this                   (cable) audio and video programming                   and DISH Network each report annual
                                             total, 299 firms had annual receipts of                 distribution; and wired broadband                     revenues that are in excess of the
                                             less than $25 million. Consequently, the                internet services.’’ The SBA has                      threshold for a small business.
                                             Commission estimates that the majority                  developed a small business size                       Accordingly, the Commission must
                                             of satellite telecommunications                         standard for this category, which is all              conclude that internally developed FCC
                                             providers are small entities.                           such businesses having 1,500 or fewer                 data are persuasive, that, in general,
                                                52. All Other Telecommunications.                    employees. U.S. Census data for 2012                  DBS service is provided only by large
                                             The ‘‘All Other Telecommunications’’                    shows that there were 3,117 firms that                firms.
                                                                                                     operated that year. Of this total, 3,083
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                                             category is comprised of establishments                                                                          55. Wireless Telecommunications
                                             primarily engaged in providing                          operated with fewer than 1,000                        Carriers (Except Satellite). This industry
                                             specialized telecommunications                          employees. Thus, under this size                      comprises establishments engaged in
                                             services, such as satellite tracking,                   standard, the majority of firms in this               operating and maintaining switching
                                             communications telemetry, and radar                     industry can be considered small. In                  and transmission facilities to provide
                                             station operation. This industry also                   addition to Census Bureau data, the                   communications via the airwaves.
                                             includes establishments primarily                       Commission’s internal records indicate                Establishments in this industry have


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                                                                Federal Register / Vol. 83, No. 155 / Friday, August 10, 2018 / Rules and Regulations                                         39617

                                             spectrum licenses and provide services                  status won approximately 40 percent of                determining their eligibility for special
                                             using that spectrum, such as cellular                   the 1,479 licenses in the first auction for           provisions such as bidding credits and
                                             services, paging services, wireless                     the D-, E-, and F-Blocks. On April 15,                installment payments. A small business
                                             internet access, and wireless video                     1999, the Commission completed the                    in this service is an entity that, together
                                             services. The appropriate size standard                 reauction of 347 C-, D-, E-, and F-Block              with its affiliates and controlling
                                             under SBA rules is that such a business                 licenses in Auction No. 22. Of the 57                 principals, has average gross revenues
                                             is small if it has 1,500 or fewer                       winning bidders in that auction, 48                   not exceeding $40 million for the
                                             employees. For this industry, U.S.                      claimed small business status and won                 preceding three years. Additionally, a
                                             Census data for 2012 shows that there                   277 licenses.                                         very small business is an entity that,
                                             were 967 firms that operated for the                       58. On January 26, 2001, the                       together with its affiliates and
                                             entire year. Of this total, 955 firms had               Commission completed the auction of                   controlling principals, has average gross
                                             fewer than 1,000 employees. Thus,                       422 C- and F-Block Broadband PCS                      revenues that are not more than $15
                                             under this category and the associated                  licenses in Auction No. 35. Of the 35                 million for the preceding three years.
                                             size standard, the Commission estimates                 winning bidders in that auction, 29                   SBA approval of these definitions is not
                                             that the majority of wireless                           claimed small business status.                        required. An auction of 52 Major
                                             telecommunications carriers (except                     Subsequent events concerning Auction                  Economic Area (‘‘MEA’’) licenses
                                             satellite) are small entities.                          No. 35, including judicial and agency                 commenced on September 6, 2000, and
                                                56. The Commission’s own data—                       determinations, resulted in a total of 163            closed on September 21, 2000. Of the
                                             available in its Universal Licensing                    C- and F-Block licenses being available               104 licenses auctioned, 96 licenses were
                                             System—indicate that, as of October 25,                 for grant. On February 15, 2005, the                  sold to nine bidders. Five of these
                                             2016, there are 280 Cellular licensees                  Commission completed an auction of                    bidders were small businesses that won
                                             that will be affected by the                            242 C-, D-, E-, and F-Block licenses in               a total of 26 licenses. A second auction
                                             Commission’s actions today. The                         Auction No. 58. Of the 24 winning                     of 700 MHz Guard Band licenses
                                             Commission does not know how many                       bidders in that auction, 16 claimed                   commenced on February 13, 2001, and
                                             of these licensees are small, as the                    small business status and won 156                     closed on February 21, 2001. All eight
                                             Commission does not collect that                        licenses. On May 21, 2007, the                        of the licenses auctioned were sold to
                                             information for these types of entities.                Commission completed an auction of 33                 three bidders. One of these bidders was
                                             Similarly, according to internally                      licenses in the A-, C-, and F-Blocks in               a small business that won a total of two
                                             developed Commission data, 413                          Auction No. 71. Of the 12 winning                     licenses.
                                             carriers reported that they were engaged                bidders in that auction, five claimed
                                             in the provision of wireless telephony,                 small business status and won 18                         61. Lower 700 MHz Band Licenses.
                                             including cellular service, Personal                    licenses. On August 20, 2008, the                     The Commission previously adopted
                                             Communications Service (PCS), and                       Commission completed the auction of                   criteria for defining three groups of
                                             Specialized Mobile Radio (SMR)                          20 C-, D-, E-, and F-Block Broadband                  small businesses for purposes of
                                             services. Of this total, an estimated 261               PCS licenses in Auction No. 78. Of the                determining their eligibility for special
                                             have 1,500 or fewer employees and 152                   eight winning bidders for Broadband                   provisions such as bidding credits. The
                                             have more than 1,500 employees. Thus,                   PCS licenses in that auction, six claimed             Commission defined a ‘‘small business’’
                                             using available data, the Commission                    small business status and won 14                      as an entity that, together with its
                                             estimates that the majority of wireless                 licenses.                                             affiliates and controlling principals, has
                                             firms can be considered small.                             59. Narrowband Personal                            average gross revenues not exceeding
                                                57. Broadband Personal                               Communications Services. Two                          $40 million for the preceding three
                                             Communications Service. The                             auctions of narrowband personal                       years. A ‘‘very small business’’ is
                                             broadband personal communications                       communications services (PCS) licenses                defined as an entity that, together with
                                             service (PCS) spectrum is divided into                  have been conducted. To ensure                        its affiliates and controlling principals,
                                             six frequency blocks designated A                       meaningful participation of small                     has average gross revenues that are not
                                             through F, and the Commission has held                  business entities in future auctions, the             more than $15 million for the preceding
                                             auctions for each block. The                            Commission has adopted a two-tiered                   three years. Additionally, the lower 700
                                             Commission initially defined a ‘‘small                  small business size standard in the                   MHz Service had a third category of
                                             business’’ for C- and F-Block licenses as               Narrowband PCS Second Report and                      small business status for Metropolitan/
                                             an entity that has average gross revenues               Order. Through these auctions, the                    Rural Service Area (MSA/RSA)
                                             of $40 million or less in the three                     Commission has awarded a total of 41                  licenses—‘‘entrepreneur’’—which is
                                             previous calendar years. For F-Block                    licenses, 11 of which were obtained by                defined as an entity that, together with
                                             licenses, an additional small business                  small businesses. A ‘‘small business’’ is             its affiliates and controlling principals,
                                             size standard for ‘‘very small business’’               an entity that, together with affiliates              has average gross revenues that are not
                                             was added and is defined as an entity                   and controlling interests, has average                more than $3 million for the preceding
                                             that, together with its affiliates, has                 gross revenues for the three preceding                three years. The SBA approved these
                                             average gross revenues of not more than                 years of not more than $40 million. A                 small size standards. An auction of 740
                                             $15 million for the preceding three                     ‘‘very small business’’ is an entity that,            licenses (one license in each of the 734
                                             calendar years. These standards                         together with affiliates and controlling              MSAs/RSAs and one license in each of
                                             defining ‘‘small entity’’, in the context               interests, has average gross revenues for             the six Economic Area Groupings
                                             of broadband PCS auctions, have been                    the three preceding years of not more                 (EAGs)) commenced on August 27,
                                             approved by the SBA. No small                           than $15 million. The SBA has                         2002, and closed on September 18,
                                                                                                                                                           2002. Of the 740 licenses available for
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                                             businesses within the SBA-approved                      approved these small business size
                                             small business size standards bid                       standards.                                            auction, 484 licenses were won by 102
                                             successfully for licenses in Blocks A                      60. 700 MHz Guard Band Licensees.                  winning bidders. Seventy-two of the
                                             and B. There were 90 winning bidders                    In 2000, in the 700 MHz Guard Band                    winning bidders claimed small
                                             that claimed small business status in the               Order, the Commission adopted size                    business, very small business or
                                             first two C-Block auctions. A total of 93               standards for ‘‘small businesses’’ and                entrepreneur status and won a total of
                                             bidders that claimed small business                     ‘‘very small businesses’’ for purposes of             329 licenses. A second auction


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                                             39618              Federal Register / Vol. 83, No. 155 / Friday, August 10, 2018 / Rules and Regulations

                                             commenced on May 28, 2003, closed on                    Commission does not know for certain                  three years (small business) received a
                                             June 13, 2003, and included 256                         which entities are likely to apply for                15 percent discount on its winning bid;
                                             licenses: 5 EAG licenses and 476                        these frequencies, the Commission notes               (ii) a bidder with attributed average
                                             Cellular Market Area licenses.                          that the AWS–1 bands are comparable                   annual gross revenues that exceed $3
                                             Seventeen winning bidders claimed                       to those used for cellular service and                million and do not exceed $15 million
                                             small or very small business status and                 personal communications service. The                  for the preceding three years (very small
                                             won 60 licenses, and nine winning                       Commission has not yet adopted size                   business) received a 25 percent discount
                                             bidders claimed entrepreneur status and                 standards for the AWS–2 or AWS–3                      on its winning bid; and (iii) a bidder
                                             won 154 licenses. On July 26, 2005, the                 bands, but proposes to treat both AWS–                with attributed average annual gross
                                             Commission completed an auction of                      2 and AWS–3 similarly to broadband                    revenues that do not exceed $3 million
                                             five licenses in the Lower 700 MHz                      PCS service and AWS–1 service due to                  for the preceding three years
                                             band (Auction No. 60). There were three                 the comparable capital requirements                   (entrepreneur) received a 35 percent
                                             winning bidders for five licenses. All                  and other factors, such as issues                     discount on its winning bid. Auction
                                             three winning bidders claimed small                     involved in relocating incumbents and                 No. 86 concluded in 2009 with the sale
                                             business status.                                        developing markets, technologies, and                 of 61 licenses. Of the ten winning
                                                62. In 2007, the Commission                          services.                                             bidders, two bidders that claimed small
                                             reexamined its rules governing the 700                     65. Broadband Radio Service and                    business status won four licenses; one
                                             MHz band in the 700 MHz Second                          Educational Broadband Service.                        bidder that claimed very small business
                                             Report and Order. An auction of 700                     Broadband Radio Service systems,                      status won three licenses; and two
                                             MHz licenses commenced January 24,                      previously referred to as Multipoint                  bidders that claimed entrepreneur status
                                             2008, and closed on March 18, 2008,                     Distribution Service (MDS) and                        won six licenses.
                                             which included: 176 Economic Area                       Multichannel Multipoint Distribution                     68. EBS—Educational Broadband
                                             licenses in the A-Block, 734 Cellular                   Service (MMDS) systems, and ‘‘wireless                Service has been included within the
                                             Market Area licenses in the B-Block,                    cable,’’ transmit video programming to                broad economic census category and the
                                             and 176 EA licenses in the E-Block.                     subscribers and provide two-way high-                 SBA size standard for Wired
                                             Twenty winning bidders, claiming small                  speed data operations using the                       Telecommunications Carriers since
                                             business status (those with attributable                microwave frequencies of the                          2007. Wired Telecommunications
                                             average annual gross revenues that                      Broadband Radio Service (BRS) and                     Carriers are comprised of establishments
                                             exceed $15 million and do not exceed                    Educational Broadband Service (EBS)                   primarily engaged in operating and/or
                                             $40 million for the preceding three                     (previously referred to as the                        providing access to transmission
                                             years) won 49 licenses. Thirty-three                    Instructional Television Fixed Service                facilities and infrastructure that they
                                             winning bidders claiming very small                     (ITFS)).                                              own and/or lease for the transmission of
                                             business status (those with attributable                   66. BRS—In connection with the 1996                voice, data, text, sound, and video using
                                             average annual gross revenues that do                   BRS auction, the Commission                           wired telecommunications networks.
                                             not exceed $15 million for the preceding                established a small business size                     Transmission facilities may be based on
                                             three years) won 325 licenses.                          standard as an entity that had annual                 a single technology or a combination of
                                                63. Upper 700 MHz Band Licenses. In                  average gross revenues of no more than                technologies. The SBA’s small business
                                             the 700 MHz Second Report and Order,                    $40 million in the previous three                     size standard for this category is all such
                                             the Commission revised its rules                        calendar years. The BRS auctions                      firms having 1,500 or fewer employees.
                                             regarding Upper 700 MHz licenses. On                    resulted in 67 successful bidders                     U.S. Census data for 2012 shows that
                                             January 24, 2008, the Commission                        obtaining licensing opportunities for                 there were 3,117 firms that operated that
                                             commenced Auction No. 73, in which                      493 Basic Trading Areas (BTAs). Of the                year. Of this total, 3,083 operated with
                                             several licenses in the Upper 700 MHz                   67 auction winners, 61 met the                        fewer than 1,000 employees. Thus,
                                             band were available for licensing: 12                   definition of a small business. BRS also              under this size standard, the majority of
                                             Regional Economic Area Grouping                         includes licensees of stations authorized             firms in this industry can be considered
                                             licenses in the C-Block, and one                        prior to the auction. At this time, the               small. In addition to Census Bureau
                                             nationwide license in the D-Block. The                  Commission estimates that of the 61                   data, the Commission’s Universal
                                             auction concluded on March 18, 2008,                    small business BRS auction winners, 48                Licensing System indicates that as of
                                             with three winning bidders claiming                     remain small business licensees. In                   October 2014, there are 2,206 active EBS
                                             very small business status (those with                  addition to the 48 small businesses that              licenses. The Commission estimates that
                                             attributable average annual gross                       hold BTA authorizations, there are                    of these 2,206 licenses, the majority are
                                             revenues that do not exceed $15 million                 approximately 392 incumbent BRS                       held by non-profit educational
                                             for the preceding three years) and                      licensees that are considered small                   institutions and school districts, which
                                             winning five licenses.                                  entities. After adding the number of                  are by statute defined as small
                                                64. Advanced Wireless Services. AWS                  small business auction licensees to the               businesses.
                                             Services (1710–1755 MHz and 2110–                       number of incumbent licensees not                        69. Wireless Communications Service.
                                             2155 MHz bands (AWS–1); 1915–1920                       already counted, the Commission finds                 This service can be used for fixed,
                                             MHz, 1995–2000 MHz, 2020–2025 MHz                       that there are currently approximately                mobile, radiolocation, and digital audio
                                             and 2175–2180 MHz bands (AWS–2);                        440 BRS licensees that are defined as                 broadcasting satellite uses. The
                                             2155–2175 MHz band (AWS–3)). For the                    small businesses under either the SBA                 Commission defined ‘‘small business’’
                                             AWS–1 bands, the Commission has                         or the Commission’s rules.                            for the wireless communications
                                             defined a ‘‘small business’’ as an entity                  67. In 2009, the Commission                        services (WCS) auction as an entity with
                                             with average annual gross revenues for                  conducted Auction No. 86, the sale of
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                                                                                                                                                           average gross revenues of $40 million
                                             the preceding three years not exceeding                 78 licenses in the BRS areas. The                     for each of the three preceding years,
                                             $40 million, and a ‘‘very small                         Commission offered three levels of                    and a ‘‘very small business’’ as an entity
                                             business’’ as an entity with average                    bidding credits: (i) A bidder with                    with average gross revenues of $15
                                             annual gross revenues for the preceding                 attributed average annual gross revenues              million for each of the three preceding
                                             three years not exceeding $15 million.                  that exceed $15 million and do not                    years. The SBA has approved these
                                             For AWS–2 and AWS–3, although the                       exceed $40 million for the preceding                  small business size standards. In the


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                                                                Federal Register / Vol. 83, No. 155 / Friday, August 10, 2018 / Rules and Regulations                                         39619

                                             Commission’s auction for geographic                     million or less in annual receipts. The               entities, and therefore the Commission’s
                                             area licenses in the WCS service there                  2012 Economic Census reports that 751                 estimates of small businesses to which
                                             were seven winning bidders that                         firms in this category operated in that               they apply may be over-inclusive to this
                                             qualified as ‘‘very small business’’                    year. Of that number, 656 had annual                  extent.
                                             entities, and one that qualified as a                   receipts of $25,000,000 or less, 25 had
                                             ‘‘small business’’ entity.                              annual receipts between $25,000,000                   5. Description of Projected Reporting,
                                                70. Radio and Television                             and $49,999,999 and 70 had annual                     Recordkeeping, and Other Compliance
                                             Broadcasting and Wireless                               receipts of $50,000,000 or more. Based                Requirements for Small Entities
                                             Communications Equipment                                on this data the Commission concludes                    75. The Order allows EAS
                                             Manufacturing. This industry comprises                  that the majority of NCEs and Public                  Participants to take part in live code
                                             establishments primarily engaged in                     Broadcast Stations are small entities
                                                                                                                                                           EAS public safety exercises, provided
                                             manufacturing radio and television                      under the applicable SBA size standard.
                                             broadcast and wireless communications                      73. According to Commission staff                  that the entity conducting the test
                                             equipment. Examples of products made                    review of the BIA Kelsey Inc. Media                   provides notification during the test to
                                             by these establishments are:                            Access Pro Television Database (BIA) as               the extent technically feasible that there
                                             Transmitting and receiving antennas,                    of November 16, 2017, approximately                   is no actual emergency and provides
                                             cable television equipment, GPS                         1,258 of the 1,378 licensed commercial                notice to the public and coordinates
                                             equipment, pagers, cellular phones,                     television stations (or about 91 percent)             with EAS Participants, state and local
                                             mobile communications equipment, and                    had revenues of $38.5 million or less,                emergency authorities, the SECC, and
                                             radio and television studio and                         and therefore these licensees qualify as              other entities before the test to inform
                                             broadcasting equipment. The SBA has                     small entities under the SBA definition.              the public and other affected entities
                                             established a small business size                       The Commission also estimates that                    that live event codes will be used and
                                             standard for this industry of 1,250                     there are 395 licensed noncommercial                  that no emergency is occurring. In
                                             employees or less. U.S. Census data for                 educational NCE television stations.                  addition, the Order allows EAS
                                             2012 shows that 841 establishments                      Notwithstanding, the Commission does                  Participants to use the EAS Attention
                                             operated in this industry in that year. Of              not compile and otherwise does not                    Signal and a harmless simulation of
                                             that number, 819 establishments                         have access to information on the                     EAS header codes in PSAs provided by
                                             operated with less than 500 employees.                  revenue of NCE stations that would                    federal, state, and local government
                                             Based on this data, the Commission                      permit it to determine how many such                  entities, as well as NGOs. These
                                             concludes that a majority of                            stations would qualify as small entities.             measures will obviate recurring costs
                                             manufacturers in this industry are                      In addition to licensed commercial                    associated with the filing of live code
                                             small.                                                  television stations and NCEs, there are               waiver requests (e.g., legal,
                                                71. Software Publishers. This industry               also an estimated 2,367 low power                     administrative, printing, and mailing
                                             comprises establishments primarily                      television stations (LPTV), including                 costs) and will not create any cost
                                             engaged in computer software                            Class A stations and 3,750 TV translator              burdens for EAS Participants. The Order
                                             publishing or publishing and                            stations. Given the nature of these                   also requires that no later than twenty-
                                             reproduction. Establishments in this                    services, the Commission will presume                 four (24) hours of an EAS Participant’s
                                             industry carry out operations necessary                 that all of these entities qualify as small           discovery (i.e., actual knowledge) that it
                                             for producing and distributing computer                 entities under the above SBA small                    has transmitted or otherwise sent a false
                                             software, such as designing, providing                  business size standard.                               alert to the public that the it send an
                                             documentation, assisting in installation,                  74. The Commission notes, however,                 email to the FCC Ops Center (at
                                             and providing support services to                       that in assessing whether a business                  FCCOPS@fcc.gov) informing the
                                             software purchasers. These                              concern qualifies as small under the                  Commission of the event and of any
                                             establishments may design, develop,                     above definition, business (control)                  details that the EAS Participant may
                                             and publish, or publish only. The SBA                   affiliations must be included. The                    have concerning the event. This
                                             has established a size standard for this                Commission’s estimate, therefore, likely              measure will help ensure that all
                                             industry of annual receipts of $38.5                    overstates the number of small entities               alerting stakeholder have sufficient
                                             million per year. U.S. Census data for                  that might be affected by the                         situational awareness of a false alert to
                                             2012 indicates that 5,079 firms operated                Commission’s action, because the                      quickly respond to and remediate the
                                             in that year. Of that number, 4,697 firms               revenue figure on which it is based does              situation.
                                             had annual receipts of $25 million or                   not include or aggregate revenues from
                                             less. Based on that data, the                           affiliated companies. Moreover, the                      76. The Order requires EAS
                                             Commission concludes that a majority                    definition of ‘‘small business’’ also                 Participants to reject all digitally-signed
                                             of firms in this industry are small.                    requires that an entity not be dominant               CAP-formatted EAS alerts that are
                                                72. NCE and Public Broadcast                         in its field of operation and that the                invalidly signed. It further requires EAS
                                             Stations. Non-commercial educational                    entity be independently owned and                     Participants to reject all EAS alerts that
                                             and public broadcast television stations                operated. The estimate of small                       are received with header code date/time
                                             fall within the U.S. Census Bureau’s                    businesses to which rules may apply                   data inconsistent with the current date
                                             definition for Television Broadcasting.                 does not exclude any television station               and time. Most EAS equipment
                                             This industry comprises establishments                  from the definition of a small business               deployed in the field already supports
                                             primarily engaged in broadcasting                       on these bases and is therefore over-                 these authentication and validation
                                             images together with sound and                          inclusive to that extent. Further, the                rules, but the Commission anticipates
                                             operating television broadcasting                                                                             that a small minority of EAS
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                                                                                                     Commission is unable at this time to
                                             studios and facilities for the                          define or quantify the criteria that                  Participants may need to update
                                             programming and transmission of                         would establish whether a specific                    software to comply with these rules.
                                             programs to the public. The SBA has                     television station is dominant in its field           Such an update should result in
                                             created a small business size standard                  of operation. The Commission further                  minimal costs to EAS Participants, as it
                                             for Television Broadcasting entities,                   notes that it is difficult at times to assess         can be performed during a scheduled in-
                                             which is such firms having $38.5                        these criteria in the context of media                version equipment software update.


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                                             39620              Federal Register / Vol. 83, No. 155 / Friday, August 10, 2018 / Rules and Regulations

                                             6. Steps Taken To Minimize the                          incurred in the normal course of                      as by sections 602(a),(b),(c), (f), 603, 604
                                             Significant Economic Impact on Small                    business.                                             and 606 of the WARN Act, 47 U.S.C.
                                             Entities, and Significant Alternatives                     80. Finally, the Commission adopts                 1202(a), (b), (c), (f), 1203, 1204 and
                                             Considered                                              implementation timeframes for each of                 1206, and the Twenty-First Century
                                                                                                     the Commission’s rules that are                       Communications and Video
                                                77. The RFA requires an agency to                    intended to allow EAS Participants to                 Accessibility Act of 2010, Public Law
                                             describe any significant alternatives that              come into compliance with the                         111–260 and Public Law 111–265, that
                                             it has considered in reaching its                       Commission’s rules in a manner that                   this Report and Order is adopted.
                                             approach, which may include the                         balances the need for improving EAS                     85. It is further ordered that the rule
                                             following four alternatives (among                      organization and effectiveness as soon                amendments adopted herein will
                                             others): ‘‘(1) the establishment of                     as possible with any potential burdens                become effective September 10, 2018,
                                             differing compliance or reporting                       that may be imposed by adoption of the                except that the amendments to sections
                                             requirements or timetables that take into               Commission’s proposals.                               11.33 and 11.56 will become effective
                                             account the resources available to small                   81. The Commission concludes that                  August 12, 2019, and the amendments
                                             entities; (2) the clarification,                        the adopted mandates provide small                    to sections 11.45(b) and 11.61, which
                                             consolidation, or simplification of                     entities as well as other EAS                         contain modifications to information
                                             compliance or reporting requirements                    Participants with a sufficient measure of             collection requirements that are
                                             under the rule for small entities; (3) the              flexibility to account for technical and              currently approved by the Office of
                                             use of performance, rather than design,                 cost-related concerns. The Commission                 Management and Budget (OMB), will
                                             standards; and (4) and exemption from                   has determined that implementing these                become effective on the date specified in
                                             coverage of the rule, or any part thereof,              improvements to the EAS is technically                a Commission notice published in the
                                             for small entities.’’                                   feasible. In the event that small entities            Federal Register announcing their
                                                78. The Commission does not expect                   face unique circumstances that restrict               approval (which date shall not be less
                                             its actions in the Order to have a                      their ability to comply with the                      than 30 days after publication of this
                                             significant economic impact on small                    Commission’s rules, the Commission                    Report and Order in the Federal
                                             entities. The rule changes to section                   can address them through the waiver                   Register).
                                             11.61 with respect to live code tests do                process.                                                86. It is further ordered that the
                                             not impose any new requirements or                      C. Paperwork Reduction Act Analysis                   Commission’s Consumer and
                                             new costs for small entities or other EAS                                                                     Governmental Affairs Bureau, Reference
                                             Participants. The steps taken by the                      82. This document contains modified                 Information Center, shall send a copy of
                                             Commission eliminating the waiver                       information collection requirements                   this Report and Order, including the
                                             filing requirement will benefit small                   subject to the Paperwork Reduction Act                Final Regulatory Flexibility Analysis, to
                                             entities by reducing the need for legal                 of 1995 (PRA), Public Law 104–13. It                  the Chief Counsel for Advocacy of the
                                             and other staff time associated with                    will be submitted to the Office of                    Small Business Administration.
                                             filing a waiver, which will translate into              Management and Budget (OMB) for
                                                                                                     review under section 3507(d) of the                   List of Subjects in 47 CFR Part 11
                                             cost reductions and have a positive
                                             economic impact. Thus, as an                            PRA. OMB, the general public, and                         Radio, Television.
                                             alternative to the existing process, the                other Federal agencies will be invited to
                                                                                                                                                           Federal Communications Commission.
                                             record supports the Commission’s                        comment on the new or modified
                                                                                                     information collection requirements                   Marlene H. Dortch,
                                             conclusion that removing the need for                                                                         Secretary.
                                             entities to request a waiver of the                     contained in this proceeding. In
                                             Commission’s rules to conduct live code                 addition, the Commission notes that                   Final Rules
                                             tests will reduce costs and remove                      pursuant to the Small Business
                                                                                                     Paperwork Relief Act of 2002, Public                    For the reasons discussed in the
                                             regulatory burdens for small entities as                                                                      preamble, the Federal Communications
                                             well as other entities subject to these                 Law 107–198, see 44 U.S.C. 3506(c)(4),
                                                                                                     the Commission previously sought                      Commission amends 47 CFR part 11 as
                                             rules.                                                                                                        follows:
                                                                                                     specific comment on how the
                                                79. The false alert reporting rules the              Commission might further reduce the
                                             Commission adopts today similarly                                                                             PART 11—EMERGENCY ALERT
                                                                                                     information collection burden for small               SYSTEM (EAS)
                                             impose minimal burdens on small                         business concerns with fewer than 25
                                             entities. The reporting requirement is                  employees.
                                             triggered only upon discovery of the                                                                          ■ 1. The authority citation for part 11
                                             false alert, allows twenty-four hours for               D. Congressional Review Act                           continues to read as follows:
                                             the submission of the report and                          83. The Commission will send a copy                   Authority: 47 U.S.C. 151, 154(i) and (o),
                                             imposes no obligation to and investigate                of this Order in a report to be sent to               303(r), 544(g) and 606.
                                             the false report. Further, the                          Congress and the Government                           ■ 2. Amend § 11.33 by revising
                                             Commission recognizes that smaller                      Accountability Office pursuant to the                 paragraph (a)(10) to read as follows:
                                             entities often face particular challenges               Congressional Review Act, see U.S.C.
                                             in achieving authentication and                         801(a)(1)(A).                                         § 11.33    EAS Decoder.
                                             validation of EAS messages due to                                                                                (a) * * *
                                             limited human, financial, or technical                  IV. Ordering Clauses                                     (10) Message Validity. An EAS
                                             resources. Due, in part, to the                           84. Accordingly, it is ordered,                     Decoder must provide error detection
                                             potentially significant burdens that the                pursuant to sections 1, 2, 4(i), 4(o), 301,           and validation of the header codes of
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                                             originally-proposed requirements would                  303(r), 303(v), 307, 309, 335, 403,                   each message to ascertain if the message
                                             pose, the Commission declines, at this                  624(g), 706, and 713 of the                           is valid. Header code comparisons may
                                             time, to adopt certain of the proposals                 Communications Act of 1934, as                        be accomplished through the use of a
                                             and defer consideration of others. Those                amended, 47 U.S.C. 151, 152, 154(i),                  bit-by-bit compare or any other error
                                             the Commission adopts are unlikely to                   154(o), 301, 303(r), 303(v), 307, 309,                detection and validation protocol. A
                                             pose burdens that are not already                       335, 403, 544(g), 606, and 613, as well               header code must only be considered


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                                                                Federal Register / Vol. 83, No. 155 / Friday, August 10, 2018 / Rules and Regulations                                              39621

                                             valid when two of the three headers                     ■   4. Revise § 11.46 to read as follows:             ■ 6. Amend § 11.61 by adding paragraph
                                             match exactly; the Origination Date/                                                                          (a)(5) to read as follows:
                                                                                                     § 11.46 EAS public service
                                             Time field (JJJHHMM) is not more than
                                                                                                     announcements.                                        § 11.61    Tests of EAS procedures.
                                             15 minutes in the future and the
                                             expiration time (Origination Date/Time                     EAS Participants may use the EAS                      (a) * * *
                                             plus Valid Time TTTT) is in the future                  Attention Signal and a simulation of the
                                                                                                     EAS codes as provided by FEMA in EAS                     (5) Live Code Tests. EAS Participants
                                             (i.e., current time at the EAS equipment                                                                      may participate in no more than two (2)
                                             when the alert is received is between                   Public Service Announcements (PSAs)
                                                                                                     (including commercially-sponsored                     ‘‘Live Code’’ EAS Tests per calendar
                                             origination time minus 15 minutes and                                                                         year that are conducted to exercise the
                                                                                                     announcements, infomercials, or
                                             expiration time). Duplicate messages                                                                          EAS and raise public awareness for it,
                                                                                                     programs) provided by federal, state,
                                             must not be relayed automatically.                                                                            provided that the entity conducting the
                                                                                                     and local government entities, or non-
                                             *       *    *    *      *                              governmental organizations, to raise                  test:
                                             ■ 3. Revise § 11.45 to read as follows:                 public awareness about emergency                         (i) Notifies the public before the test
                                                                                                     alerting. This usage is only permitted if             that live event codes will be used, but
                                             § 11.45 Prohibition of false or deceptive                                                                     that no emergency is, in fact, occurring;
                                                                                                     the PSA is presented in a non-
                                             EAS transmissions.
                                                                                                     misleading and technically harmless                      (ii) To the extent technically feasible,
                                                (a) No person may transmit or cause                  manner, including with the explicit                   states in the test message that the event
                                             to transmit the EAS codes or Attention                  statement that the Attention Signal and               is only a test;
                                             Signal, or a recording or simulation                    EAS code simulation are being used in
                                             thereof, in any circumstance other than                                                                          (iii) Coordinates the test among EAS
                                                                                                     the context of a PSA for the purpose of               Participants and with state and local
                                             in an actual National, State or Local                   educating the viewing or listening
                                             Area emergency or authorized test of the                                                                      emergency authorities, the relevant
                                                                                                     public about emergency alerting.                      SECC (or SECCs, if the test could affect
                                             EAS; or as specified in §§ 10.520(d),                   ■ 5. Amend § 11.56 by redesignating
                                             11.46, and 11.61 of this chapter.                                                                             multiple states), and first responder
                                                                                                     paragraph (c) as paragraph (d) and                    organizations, such as PSAPs, police,
                                                (b) No later than twenty-four (24)                   adding new paragraph (c) to read as
                                             hours of an EAS Participant’s discovery                                                                       and fire agencies); and,
                                                                                                     follows:
                                             (i.e., actual knowledge) that it has                                                                             (iv) Consistent with § 11.51, provides
                                             transmitted or otherwise sent a false                   § 11.56 Obligation to process CAP-                    in widely accessible formats the
                                             alert to the public, the EAS Participant                formatted EAS messages.                               notification to the public required by
                                             send an email to the Commission at the                  *     *     *     *     *                             this subsection that the test is only a
                                             FCC Ops Center at FCCOPS@fcc.gov,                         (c) EAS Participants shall configure                test, and is not a warning about an
                                             informing the Commission of the event                   their systems to reject all CAP-formatted             actual emergency.
                                             and of any details that the EAS                         EAS messages that include an invalid                  *       *    *     *     *
                                             Participant may have concerning the                     digital signature.                                    [FR Doc. 2018–17096 Filed 8–9–18; 8:45 am]
                                             event.                                                  *     *     *     *     *                             BILLING CODE 6712–01–P
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Document Created: 2018-08-10 01:57:22
Document Modified: 2018-08-10 01:57:22
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 September 10, 2018, except for the amendments to 47 CFR 11.33 and 11.56, which are effective August 12, 2019, and the amendments to 47 CFR 11.45(b) and 11.61, which contain modifications to information collection requirements that were previously approved by the Office of Management and Budget (OMB). Once OMB has approved the modifications to these collections, the Commission will publish a document in the Federal Register announcing the effective date.
ContactGregory Cooke, Deputy Chief, Policy and Licensing Division, Public Safety and Homeland Security Bureau, at (202) 418-7452, or by email at [email protected] For additional information concerning the information collection requirements contained in this document, send an email to [email protected] or contact Nicole Ongele, Office of Managing Director, Performance Evaluation and Records Management, 202-418-2991, or by email to [email protected]
FR Citation83 FR 39610 
CFR AssociatedRadio and Television

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