[Federal Register Volume 82, Number 29 (Tuesday, February 14, 2017)]
[Proposed Rules]
[Pages 10559-10561]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-02926]


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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Part 73

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


Media Bureau Seeks Comment on Requiring the Filing of Transition 
Progress Reports by Stations That Are Not Eligible for Reimbursement 
From the TV Broadcast Relocation Fund

AGENCY: Federal Communications Commission.

ACTION: Proposed rule; request for comment.

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SUMMARY: In this document, the Federal Communications Commission seeks 
comment on a proposed Transition Progress Report (FCC Form 2100--
Schedule 387 (Transition Progress Report)) and proposed filing 
requirements for periodic progress reports by full power and Class A 
television stations that are not eligible to receive payment of 
relocation expenses from the TV Broadcast Relocation Fund in connection 
with their being assigned to a new channel through the Incentive 
Auction. The Commission tentatively concludes that this mechanism is 
needed to help the Commission, broadcasters, those involved in 
construction of broadcast facilities, other interested parties, and the 
public to monitor the construction of the stations that are not 
eligible for reimbursement.

DATES: Comments due on or before March 1, 2017; and reply comments are 
due on or before March 13, 2017.

ADDRESSES: You may submit comments, identified by GN Docket No. 12-268 
and MB Docket No. 16-306, by any of the following methods:
     Federal eRulemaking Portal: http://www.regulations.gov. 
Follow the instructions for submitting comments.
     Federal Communications Commission's Web site: https://www.fcc.gov/. Electronic Filers: Comments may be filed electronically 
using the Internet by accessing the ECFS: https://www.fcc.gov/ecfs/.
     Paper Filers: Filings can be sent by hand or messenger 
delivery, by commercial overnight courier, or by first-class or 
overnight U.S. Postal Service mail. All filings must be addressed to 
the Commission's Secretary, Office of the Secretary, Federal 
Communications Commission. All hand-delivered or messenger-delivered 
paper filings for the Commission's Secretary must be delivered to FCC 
Headquarters at 445 12th St. SW., Room TW-A325, Washington, DC 20554. 
The filing hours are 8:00 a.m. to 7 p.m. All hand deliveries must be 
held together with rubber bands or fasteners. Any envelopes and boxes 
must be disposed of before entering the building. Commercial overnight 
mail (other than U.S. Postal Service Express Mail and Priority Mail) 
must be sent to 9300 East Hampton Drive, Capitol Heights, MD 20743. 
U.S. Postal Service first-class, Express, and Priority mail must be 
addressed to 445 12th Street SW., Washington, DC 20554.
    People with Disabilities: Contact the FCC to request reasonable 
accommodations (accessible format documents, sign language 
interpreters, CART, etc.) by email: [email protected] or phone: 202-418-
0530 or TTY: 202-418-0432.

FOR FURTHER INFORMATION CONTACT: Joyce Bernstein, 
[email protected], (202) 418-1647.

SUPPLEMENTARY INFORMATION: In the Incentive Auction R&O, the Commission 
adopted rules and procedures for conducting the broadcast television 
incentive auction. See Expanding the Economic and Innovation 
Opportunities of Spectrum Through Incentive Auctions, GN Docket No. 12-
268, Report and Order, 79 FR 48442, August 15, 2014. The incentive 
auction is composed of a reverse auction in which

[[Page 10560]]

broadcasters offer to voluntarily relinquish some or all of their 
spectrum usage rights, and a forward auction of new, flexible-use 
licenses suitable for providing mobile broadband services. The reverse 
auction incorporates a repacking process to reorganize the broadcast 
television bands so that the television stations that remain on the air 
after the transition will occupy a smaller portion of the ultra-high 
frequency (UHF) band, thereby clearing contiguous spectrum that will be 
repurposed as the 600 MHz Band for flexible wireless use. After bidding 
concludes, the Media and Wireless Telecommunications Bureaus will 
release the Closing and Reassignment Public Notice which, among other 
things, will announce the results of the repacking process and identify 
the channel reassignments of television channels. The Closing and 
Reassignment Public Notice will also establish the beginning of the 39-
month post-auction transition period (transition period). By the end of 
the transition period, all stations reassigned to new channels must 
complete construction of their post-auction channel facilities, 
commence operation on their post-auction channel, cease operation on 
their pre-auction channel, and file a license application.
    Most stations that incur costs as a result of being reassigned to 
new channels will be eligible for reimbursement from the Reimbursement 
Fund and the Commission determined in the Incentive Auction R&O, that 
reimbursable stations will be required, on a regular basis, to provide 
progress reports to the Commission showing how the disbursed funds have 
been spent and what portion of their construction is complete. In this 
document the Bureau announces that each full power and Class A 
television station that is eligible for reimbursement of its relocation 
costs from the TV Broadcast Relocation Fund established by the Middle 
Class Tax Relief and Job Creation Act of 2012 must periodically file an 
FCC Form 2100--Schedule 387 (Transition Progress Report) that is 
attached as Appendix A to the Public Notice. The appendix is available 
at https://apps.fcc.gov/edocs_public/attachmatch/DA-17-34A1.pdf. 
Reimbursable stations must file Transition Progress Reports using the 
Commission's electronic filing system starting with first full calendar 
quarter after completion of the Incentive Auction and on a quarterly 
basis thereafter. In addition to these quarterly reports, reimbursable 
stations must file the reports: (1) 10 weeks before the end of their 
assigned construction deadline; (2) 10 days after they complete all 
work related to construction of their post-auction facilities; and (3) 
five days after they cease broadcasting on their pre-auction channel. 
Once a station has filed Transition Progress Reports certifying that it 
has completed all work related to construction of its post-auction 
facilities and has ceased operating on its pre-auction channel, it will 
no longer be required to file reports.
    Other stations that will be relocating to new channels are not 
eligible for reimbursement, including stations with a winning reverse 
auction bid to move to the low or high very-high frequency (VHF) band, 
stations requesting a waiver of the Commission's service rules in lieu 
of reimbursement, and a small number of Class A stations that may be 
displaced as a result of repacking. This document tentatively concludes 
that a similar mechanism is needed to help the Commission, 
broadcasters, those involved in construction of broadcast facilities, 
other interested parties, and the public to monitor the construction of 
the stations that are not eligible for reimbursement, and seeks comment 
on the Transition Progress Report as it relates to non-reimbursable 
stations, including whether the same questions asked of reimbursable 
stations should be asked of non-reimbursable stations, or whether 
different filing intervals or different filing requirements would be 
advisable.
    Paperwork Reduction Act of 1995 Analysis: This document contains 
new or modified information collection requirements. The Commission, as 
part of its continuing effort to reduce paperwork burdens, the general 
public and the Office of Management and Budget (OMB) are invited to 
comment on the information collection requirements contained in this 
document as required by the Paperwork Reduction Act of 1995, Public Law 
104-13, see 44 U.S.C. 3507.
    Initial Regulatory Flexibility Act Analysis: As required by the 
Regulatory Flexibility Act of 1980, as amended (``RFA'') the Commission 
has prepared this Initial Regulatory Flexibility Analysis (``IRFA'') 
concerning the possible significant economic impact on small entities 
of the policies and rules proposed in the this PN (Progress Report Form 
PN). Written public comments are requested on this IRFA. Comments must 
be identified as responses to the IRFA and must be filed by the 
deadlines for comments provided on the first page of the Progress 
Report Form PN. The Commission will send a copy of the Progress Report 
Form PN, including this IRFA, to the Chief Counsel for Advocacy of the 
Small Business Administration (``SBA''). In addition, the Progress 
Report Form PN and IRFA (or summaries thereof) will be published in the 
Federal Register.
    The Regulatory Flexibility Act of 1980, as amended (``RFA''), 
requires that a regulatory flexibility analysis be prepared for notice 
and comment rule making proceedings, unless the agency certifies that 
``the rule will not, if promulgated, have a significant economic impact 
on a substantial number of small entities.'' The RFA generally defines 
the term ``small entity'' as having the same meaning as the terms 
``small business,'' ``small organization,'' and ``small governmental 
jurisdiction.'' In addition, the term ``small business'' has the same 
meaning as the term ``small business concern'' under the Small Business 
Act. A ``small business concern'' is one which: (1) Is independently 
owned and operated; (2) is not dominant in its field of operation; and 
(3) satisfies any additional criteria established by the Small Business 
Administration (SBA).

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

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

[[Page 10561]]

information in the progress reports will be used by the Commission, 
stations, and other interested parties to monitor the status of 
reassigned stations' construction during the 39-month transition 
period.

B. Legal Basis

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

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

    The RFA directs agencies to provide a description of, and where 
feasible, an estimate of the number of small entities that may be 
affected by the proposed rules, if adopted. The RFA generally defines 
the term ``small entity'' as having the same meaning as the terms 
``small business,'' ``small organization,'' and ``small governmental 
jurisdiction.'' In addition, the term ``small business'' has the same 
meaning as the term ``small business concern'' under the Small Business 
Act. A small business concern is one which: (1) Is independently owned 
and operated; (2) is not dominant in its field of operation; and (3) 
satisfies any additional criteria established by the SBA. Below, we 
provide a description of such small entities, as well as an estimate of 
the number of such small entities, where feasible.
    Television Broadcasting. This economic census category ``comprises 
establishments primarily engaged in broadcasting images together with 
sound.'' The SBA has created the following small business size standard 
for such businesses: Those having $38.5 million or less in annual 
receipts. The 2007 U.S. Census indicates that 808 firms in this 
category operated in that year. Of that number, 709 had annual receipts 
of $25,000,000 or less, and 99 had annual receipts of more than 
$25,000,000. Because the Census has no additional classifications that 
could serve as a basis for determining the number of stations whose 
receipts exceeded $38.5 million in that year, we conclude that the 
majority of television broadcast stations were small under the 
applicable SBA size standard.
    Apart from the U.S. Census, the Commission has estimated the number 
of licensed commercial television stations to be 1,386 stations. Of 
this total, 1,221 stations (or about 88 percent) had revenues of $38.5 
million or less, according to Commission staff review of the BIA Kelsey 
Inc. Media Access Pro Television Database (BIA) on July 2, 2014. In 
addition, the Commission has estimated the number of licensed 
noncommercial educational (NCE) television stations to be 395. NCE 
stations are non-profit, and therefore considered to be small entities. 
Therefore, we estimate that the majority of television broadcast 
stations are small entities. We note, however, that in assessing 
whether a business concern qualifies as small under the above 
definition, business (control) affiliations must be included. Our 
estimate, therefore, likely overstates the number of small entities 
that might be affected by our action because the revenue figure on 
which it is based does not include or aggregate revenues from 
affiliated companies. In addition, an element of the definition of 
``small business'' is that the entity not be dominant in its field of 
operation. We are unable at this time to define or quantify the 
criteria that would establish whether a specific television station is 
dominant in its field of operation. Accordingly, the estimate of small 
businesses to which rules may apply does not exclude any television 
station from the definition of a small business on this basis and is 
therefore possibly over-inclusive to that extent.
    Class A TV Stations. The same SBA definition that applies to 
television broadcast stations would apply to licensees of Class A 
television stations. As noted above, the SBA has created the following 
small business size standard for this category: Those having $38.5 
million or less in annual receipts. The Commission has estimated the 
number of licensed Class A television stations to be 418. Given the 
nature of these services, we will presume that these licensees qualify 
as small entities under the SBA definition.

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

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

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

    The RFA requires an agency to describe any significant alternatives 
that it has considered in reaching its proposed approach, which may 
include the following four alternatives (among others): (1) The 
establishment of differing compliance or reporting requirements or 
timetables that take into account the resources available to small 
entities; (2) the clarification, consolidation, or simplification of 
compliance or reporting requirements under the rule for small entities; 
(3) the use of performance, rather than design, standard; and (4) an 
exemption from coverage of the rule, or any part thereof, for small 
entities.
    In general, alternatives to proposed rules or policies are 
discussed only when those rules pose a significant adverse economic 
impact on small entities. We believe the burdens of the proposed 
reporting requirement are minimal and, in any event, are outweighed by 
the potential benefits of allowing for monitoring of the post-auction 
transition. In particular, the intent is to allow the Commission, 
broadcasters, and other interested parties to more closely monitor that 
status of construction during the transition, and focus resources on 
ensuring successful completion of the transition by all reassigned 
stations and continuity of over-the-air television service. Although 
the proposal to require reassigned stations that are not eligible for 
reimbursement to file regular progress reports during the transition 
may impose additional burdens on these stations, we believe the 
benefits of the proposal (such as further facilitating the successful 
post-incentive auction transition) outweigh any burdens associated with 
compliance.

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

    None.

Federal Communications Commission.
Thomas Horan,
Chief of Staff, Media Bureau.
[FR Doc. 2017-02926 Filed 2-13-17; 8:45 am]
BILLING CODE 6712-01-P