[Federal Register Volume 61, Number 52 (Friday, March 15, 1996)] [Rules and Regulations] [Pages 10689-10691] From the Federal Register Online via the Government Publishing Office [www.gpo.gov] [FR Doc No: 96-6207] ----------------------------------------------------------------------- FEDERAL COMMUNICATIONS COMMISSION 47 CFR PART 73 [FCC 96-90] Implementation of Sections 202(a) and 202(b)(1) of the Telecommunications Act of 1996 (Broadcast Radio Ownership) AGENCY: Federal Communications Commission. ACTION: Final rule. ----------------------------------------------------------------------- SUMMARY: This Order amends the Commission's Rules to eliminate current national multiple radio ownership restrictions and to relax local radio ownership restrictions (the ``radio contour overlap'' rule). This action is necessary to conform the current rules to section 202(a) and 202(b)(1) of the Telecommunications Act of 1996. EFFECTIVE DATE: March 15, 1996. FOR FURTHER INFORMATION CONTACT: Alan Aronowitz, Mass Media Bureau, Policy and Rules Division, (202) 418-2130. SUPPLEMENTARY INFORMATION: This is a summary of the Commission's Order, FCC 96-92, adopted March 7, 1996 and released March 8, 1996. The full text of this Commission decision is available for inspection and copying during normal business hours in the FCC Dockets Branch (Room 239), 1919 M Street, N.W., Washington, D.C. The complete text of this decision may also be purchased from the Commission's copy contractor, International Transcription Services, (202) 857-3800, 2100 M Street, N.W., Suite 140, Washington, DC 20037. Synopsis of Order By this Order, the Commission amends 47 CFR 73.3555 of its rules to conform to provisions of the Telecommunications Act of 1996 (``Telecom Act''), Public Law 104-104, 110 Stat. 56 (1996), signed into law by President Clinton on February 8, 1996. Sections 202(a) and 202(b)(1) of the Telecom Act direct the Commission to revise Sec. 73.3555 of its Rules (47 CFR 73.3555) regarding the national multiple radio ownership rule and the local radio ownership (``radio contour overlap'') rule. National Radio Station Ownership 2. Section 73.3555(e)(1)(i) of the Commission's Rules generally limits commercial radio ownership on a nationwide basis to no more than 20 AM stations and no more than 20 FM stations. Section 73.3555(e)(1)(i) further provides that an entity may have an attributable but noncontrolling interest in an additional 3 AM and 3 FM stations that are small business controlled or minority-controlled. Section 202(a) of the Telecom Act directs the Commission to ``modify Section 73.3555 of its regulations * * * by eliminating any provisions limiting the number of AM or FM broadcast stations which may be owned or controlled by one entity nationally.'' Accordingly, Sec. 73.3555(e)(1)(i) will be deleted and the remainder of the rule will be modified to reflect the changes directed by this section of the Telecom Act. Local Radio Station Ownership 3. The local radio ownership (``radio contour overlap'') rule, 47 CFR 73.3555(a)(1), defines the limits of local commercial radio ownership by a single entity. Section 73.3555(a)(1) permits ownership of up to three commercial radio stations, no more than two of which may be in the same service, in radio markets with 14 or fewer stations, provided that the owned stations, if other than a single AM and FM station combination, represent less than 50 percent of the stations in the market; in markets with 15 or more commercial radio stations, ownership of up to two AM and two FM commercial radio stations is generally permitted if the combined audience share of the commonly owned stations does not exceed 25 percent in the market. Section 202(b)(1) of the Telecom Act requires the Commission to ``revise section 73.3555(a) of its regulations * * * to provide that-- (A) In a radio market with 45 or more commercial radio stations, a party may own, operate, or control up to 8 commercial radio [[Page 10690]] stations, not more than 5 of which are in the same service (AM or FM); (B) in a radio market with between 30 and 44 (inclusive) commercial radio stations, a party may own, operate, or control up to 7 commercial radio stations, not more than 4 of which are in the same service (AM or FM); (C) in a radio market with between 15 and 29 (inclusive) commercial radio stations, a party may own, operate, or control up to 6 commercial radio stations, not more than 4 of which are in the same service (AM or FM); and (D) in a radio market with 14 or fewer commercial radio stations, a party may own, operate, or control up to 5 commercial radio stations, not more than 3 of which are in the same service (AM or FM), except that a party may not own, operate, or control more than 50 percent of the stations in such market.'' Accordingly, Sec. 73.3555(a)(1) and 73.3555(a)(3)(iii) of the Commission's Rules will be revised to reflect the changes directed by section 202(b)(1) of the Telecom Act, as set forth below. Section 73.3555(a)(3)(iii), which defines a radio station's ``audience share'' for multiple radio ownership under the current rules, will be deleted. Other Matters 4. This Order is limited to revising our rules as directed by sections 202(a) and 202(b)(1) of the Telecom Act. Section 202(b)(2) of the Telecom Act provides that notwithstanding any limitation authorized by this subsection, the Commission may permit a person or entity to own, operate, or control, or have a cognizable interest in, radio broadcast stations if the Commission determines that such ownership, operation, control, or interest will result in an increase in the number of radio broadcast stations in operation. The implementation of this particular provision will be addressed in a subsequent Notice of Proposed Rule Making. Of course, entities are not precluded from asking the Commission to apply this statutory exception in a particular case before any rule changes. 5. The following aspects of our radio ownership rules, as set forth in previous Commission decisions, are unaffected by the Telecom Act and will remain in effect: (1) We will continue to define the relevant radio market as the area encompassed by the principal community contours (i.e., predicted or measured 5 mV/m for AM stations and predicted 3.16 mV/m for FM stations) of the mutually overlapping stations proposing to have common ownership. (2) The number of stations in the market will continue to be determined based on the principal community contours of all commercial stations whose principal community contours overlap or intersect the principal community contours of the commonly-owned and mutually overlapping stations. (3) The stations that will be included within the market will continue to be operating commercial full-power stations, including daytimers and foreign stations. We will continue to exclude non-commercial stations, translators and stations that are not operational. However, the principal community contours of any non-operational commercial stations that are part of a transaction or that are commonly-owned by a party to the transaction will continue to be used to define the radio market and to count the number of stations in the radio market. We also note that time brokerage agreements between two stations in the same market that involve more than 15 percent of the brokered station's programming per week will continue to be treated as if the brokered station is owned by the brokering station for purposes of the radio local ownership rules. Administrative Matters We are revising these rules without providing prior public notice and comment because the rules being modified are mandated by the applicable provisions of the Telecom Act. We find that notice and comment procedures are unnecessary, and that this action therefore falls within the ``good cause'' exception of the Administrative Procedure Act. See 5 U.S.C. 553(b)(B) (notice requirements inapplicable ``when the agency for good cause finds . . . that notice and public procedure thereon are impracticable, unnecessary, or contrary to the public interest''). The rule changes adopted in this Order do not involve discretionary action on the part of the Commission. Rather, they simply implement provisions of the Telecom Act that direct the Commission to revise its rules according to specific terms set forth in the legislation. Ordering Clause 7. Accordingly, it is ordered that pursuant to sections 202(a) and 202(b)(1) of the Telecommunications Act of 1996, and to sections 4(i) and 303(r) of the Communications Act of 1934, as amended, 47 U.S.C. 154(i), 303(r), part 73 of the Commission's Rules, 47 CFR part 73, is amended as set forth below. We note that Sec. 73.3555(e) is also being amended in the Order implementing certain of the Telecom Act's broadcast television ownership provisions that is being released simultaneously with this Order.1 For clarity, the amendments to Sec. 73.3555(e) are being set forth only in that proceeding. The rules will become effective upon publication of this Order in the Federal Register. \1\ Order, FCC 96-91 (released March 8, 1996). --------------------------------------------------------------------------- List of Subjects in 47 CFR Part 73 Radio broadcasting. Federal Communications Commission. William F. Caton, Acting Secretary. Rule Changes Part 73 of title 47 of the Code of Federal Regulations is amended as follows: PART 73--RADIO BROADCAST SERVICES 1. The authority citation for part 73 continues to read as follows: Authority: 47 U.S.C. 154, 303, 334. 2. Section 73.3555 is amended by revising paragraph (a) to read as follows: Sec. 73.3555 Multiple ownership. (a)(1) Radio contour overlap rule. No license for an AM or FM broadcasting station shall be granted to any party (including all parties under common control) if the grant of such license will result in overlap of the principal community contour of that station and the principal community contour of any other broadcasting station directly or indirectly owned, operated, or controlled by the same party, except that such license may be granted in connection with a transfer or assignment from an existing party with such interests, or in the following circumstances: (i) In a radio market with 45 or more commercial radio stations, a party may own, operate, or control up to 8 commercial radio stations, not more than 5 of which are in the same service (AM or FM); (ii) In a radio market with between 30 and 44 (inclusive) commercial radio stations, a party may own, operate, or control up to 7 commercial radio stations, not more than 4 of which are in the same service (AM or FM); (iii) In a radio market with between 15 and 29 (inclusive) commercial radio stations, a party may own, operate, or control up to 6 commercial radio stations, not more than 4 of which are in the same service (AM or FM); and (iv) In a radio market with 14 or fewer commercial radio stations, a party may own, operate, or control up to 5 commercial radio stations, not more than 3 of which are in the same service (AM or FM), except that a party may not own, operate, or control more than 50 percent of the stations in such market. [[Page 10691]] (2) Overlap between two stations in different services is permissible if neither of those two stations overlaps a third station in the same service. (3) (i) Where the principal community contours of two radio stations overlap and a party (including all parties under common control) with an attributable ownership interest in one such station brokers more than 15 percent of the broadcast time per week of the other such station, that party shall be treated as if it has an interest in the brokered station subject to the limitations set forth in paragraph (a)(1) of this section. This limitation shall apply regardless of the source of the brokered programming supplied by the party to the brokered station. (ii) Every time brokerage agreement of the type described in paragraph (a)(3)(i) of this section shall be undertaken only pursuant to a signed written agreement that shall contain a certification by the licensee or permittee of the brokered station verifying that it maintains ultimate control over the station's facilities, including specifically control over station finances, personnel and programming, and by the brokering station that the agreement complies with the provisions of paragraph (a) of this section. (4) For purposes of this paragraph (a): (i) The ``principal community contour'' for AM stations is the predicted or measured 5 mV/m groundwave contour computed in accordance with Sec. 73.183 or Sec. 73.186 and for FM stations is the predicted 3.16 mV/m contour computed in accordance with Sec. 73.313. (ii) The number of stations in a radio market is the number of commercial stations whose principal community contours overlap, in whole or in part, with the principal community contours of the stations in question (i.e., the station for which an authorization is sought and any station in the same service that would be commonly owned whose principal community contour overlaps the principal community contour of that station). In addition, if the area of overlap between the stations in question is overlapped by the principal community contour of a commonly owned station or stations in a different service (AM or FM), the number of stations in the market includes stations whose principal community contours overlap the principal community contours of such commonly owned station or stations in a different service. (iii) ``Time brokerage'' is the sale by a licensee of discrete blocks of time to a ``broker'' that supplies the programming to fill that time and sells the commercial spot announcements in it. * * * * * [FR Doc. 96-6207 Filed 3-14-96; 8:45 am] BILLING CODE 6712-01-U