[Federal Register Volume 59, Number 38 (Friday, February 25, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-4292]
[[Page Unknown]]
[Federal Register: February 25, 1994]
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FEDERAL COMMUNICATIONS COMMISSION
47 CFR Parts 1, 21, 22, 90, 94, and 95
[PP Docket No. 93-253; FCC 94-32]
Implementation of Section 309(j) of the Communications Act--
Competitive Bidding
AGENCY: Federal Communications Commission.
ACTION: Final rule.
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SUMMARY: The Commission has adopted a First Report and Order (Order)
that proposes to implement recent statutory change to the
Communications Act of 1934, as amended (Communications Act). The Order
is necessary in order to comply with the Congressional directive
contained in the Omnibus Budget Reconciliation Act of 1993 (Budget Act)
to consider regulations to deter unjust enrichment by lottery winners.
The Order adopts a rule requiring disclosure of transfer prices by an
applicant for voluntary transfer of control or assignment where the
subject license was acquired by the transferor through a Commission
lottery.
EFFECTIVE DATE: May 26, 1994.
FOR FURTHER INFORMATION CONTACT:
Marc Martin or Kent Nakamura, Office of Plans and Policy, Federal
Communications Commission, at (202) 653-5940.
SUPPLEMENTARY INFORMATION: This is a summary of the Commission's Order,
FCC 94-32, adopted February 3, 1994; and released February 4, 1994. The
full text of this Order is available for inspection and copying during
normal business hours in the FCC Reference Center, room 230, 1919 M
Street, NW., Washington, DC. The complete text may be purchased from
the Commission's copy contractor, International Transcription Service,
1919 M Street, room 236, Washington, DC 20554, telephone (202) 857-
3800.
Summary of Order
1. The First Report and Order (Order) in PP Docket 93-253
implements a provision of the Budget Act that requires the Commission
to prescribe, as necessary, regulations to deter unjust enrichment in
the lottery context within 180 days of the Budget Act's enactment,
i.e., February 6, 1994. The Commission has adopted a transfer
disclosure rule that applies to applicants for voluntary transfer of
control or assignment where the transferor or assignor acquired the
subject license through a Commission lottery.
2. This Order responds to Congress's directive. The Commission
concludes that, in addition to the requirements that already apply to
licenses acquired pursuant to lotteries, certain transfer disclosure
rules are necessary to prevent unjust enrichment with respect to
licenses that the Commission issues by lottery.
3. By this action, the Commission adopts a rule requiring
disclosure of the consideration that would be received by prospective
transferor of licenses they have acquired through Commission lotteries.
These requirements will enable the Commission to monitor the operation
and effect of lotteries closely over the next several years as it gains
experience with the competitive bidding process and the new regulatory
environment for mobile service providers, thus enabling the Commission
to determine whether additional safeguards are necessary.
4. As required by section 603 of the Regulatory Flexibility Act,
the Commission prepared an Initial Regulatory Flexibility Analysis
(IRFA) of the expected impact of the proposals contained in the Notice
of Proposed Rule Making, PP Docket No. 93-253, 58 FR 53489 (October 15,
1993), on small entities. By this Order, the Commission responds to a
Congressional directive contained in the Budget Act to consider
measures to deter unjust enrichment in the lottery context. The
Commission received no comments in response to the IRFA concerning
unjust enrichment in the lottery context. As noted in the text of the
Order, we considered and rejected more burdensome requirements designed
to deter unjust enrichment, such as additional transfer restrictions
for licensees that acquire their license by lottery. Rather, we adopted
the less onerous transfer disclosure requirement that is expressly
recommended in the Budget Act. In the case of some spectrum-based
services, such as Low Power Television, entities that file transfer of
control applications with the Commission are currently required to
submit information similar to what the Commission explicitly requires
by this Order: Copies of documents that reveal the transfer price for a
license. Further, in other services, applicants for voluntary transfer
of control or assignment are currently required to submit information
in support of their request. Inasmuch as any contracts, purchase
agreements, or similar legal documents detailing the consideration
received by the transferor will presumably already have been prepared
by the parties to the transaction for their own purposes, attaching a
copy of such documents to the application(s) submitted to the
Commission should not prove onerous. Accordingly, the Commission does
not believe this limited disclosure requirement adds a significant
economic burden on small entities.
5. The proposal contained herein has been analyzed with respect to
the Paperwork Reduction Act of 1980, 44 U.S.C. 3501-3520, and found to
contain, in new or modified form, information collection and/or record
retention requirements, that would not substantially increase burden
hours imposed on the public. Further, the Commission has examined the
relevant data and determined that the universe of affected parties to
be fewer than ten annually. Therefore, the Paperwork Reduction Act does
not apply to this action.
List of Subjects in 47 CFR Parts 1, 21, 22, 90, 94, and 95
Radio.
Federal Communications Commission.
William F. Caton,
Acting Secretary.
Final Rules
Parts 1, 21, 22, 90, 94 and 95 of chapter I of title 47 of the Code
of Federal Regulations are amended as follows:
PART 1--PRACTICE AND PROCEDURE
1. The authority citation for part 1 continues to read as follows:
Authority: Secs. 4, 303, 48 Stat. 1066, 1082, as amended; 47
U.S.C. 154, 303: Implement 5 U.S.C. 552 and 21 U.S.C. 853(a), unless
otherwise noted.
2. Section 1.924 is amended by adding a new paragraph (d) to read
as follows:
Sec. 1.924 Assignment or transfer of control, voluntary and
involuntary.
* * * * *
(d) An applicant for voluntary transfer of control or assignment
under this section where the subject license was acquired by the
transferor or assignor through a system of random selection shall,
together with its application for transfer of control or assignment,
file with the Commission the associated contracts for sale, option
agreements, management agreements, or other documents disclosing the
total consideration that the applicant would receive in return for the
transfer or assignment of its license. This information should include
not only a monetary purchase price, but also any future, contingent,
in-kind, or other consideration (e.g., management or consulting
contracts either with or without an option to purchase; below-market
financing).
PART 21--DOMESTIC PUBLIC FIXED RADIO SERVICES
3. The authority citation for part 21 continues to read as follows:
Authority: Secs. 1, 2, 4, 201-205, 208, 215, 218, 303, 307, 313,
314, 403, 404, 410, 610; 48 Stat. as amended, 1064, 1066, 1070-1073,
1076, 1077, 1080, 1082, 1083, 1087, 1094, 1098, 1102; 47 U.S.C. 151,
154, 201-205, 208, 215, 218, 303, 307, 313, 314, 403, 404, 602; 47
U.S.C. 552.
4. Section 21.38 is amended by adding a new paragraph (g) to read
as follows:
Sec. 21.38 Assignment or transfer of station authorization.
* * * * *
(g) An applicant for voluntary transfer of control or assignment
under this section where the subject license was acquired by the
transferor or assignor through a system of random selection shall,
together with its application for transfer of control or assignment,
file with the Commission the associated contracts for sale, option
agreements, management agreements, or other documents disclosing the
total consideration that the applicant would receive in return for the
transfer or assignment of its license. This information should include
not only a monetary purchase price, but also any future, contingent,
in-kind, or other consideration (e.g., management or consulting
contracts either with or without an option to purchase; below-market
financing).
PART 22--PUBLIC MOBILE SERVICE
5. The authority citation for part 22 continues to read as follows:
Authority: 47 U.S.C. 154, 303, unless otherwise noted.
6. Section 22.39 is amended by adding a new paragraph (d) to read
as follows:
Sec. 22.39 Transfer of control or assignment of station authorization.
* * * * *
(d) An applicant for voluntary transfer of control or assignment
under this section where the subject license was acquired by the
transferor or assignor through a system of random selection shall,
together with its application for transfer of control or assignment,
file with the Commission the associated contracts for sale, option
agreements, management agreements, or other documents disclosing the
total consideration that the applicant would receive in return for the
transfer or assignment of its license. This information should include
not only a monetary purchase price, but also any future, contingent,
in-kind, or other consideration (e.g., management or consulting
contracts either with or without an option to purchase; below-market
financing).
PART 90--PRIVATE LAND MOBILE RADIO SERVICES
7. The authority citation for part 90 continues to read as follows:
Authority: Sections 4, 303, and 332, 48, Stat. 1066, 1082, as
amended; 47 U.S.C. 154, 303 and 332, unless otherwise noted.
8. Section 90.153 is amended by adding two new sentences at the end
of the existing sentence to read as follows:
Sec. 90.153 Transfer or assignment of station authorization.
* * * An applicant for voluntary transfer of control or assignment
under this section where the subject license was acquired by the
transferor or assignor through a system of random selection shall,
together with its application for transfer of control or assignment,
file with the Commission the associated contracts for sale, option
agreements, management agreements, or other documents disclosing the
total consideration that the applicant would receive in return for the
transfer or assignment of its license. This information should include
not only a monetary purchase price, but also any future, contingent,
in-kind, or other consideration (e.g., management or consulting
contracts either with or without an option to purchase; below-market
financing).
PART 94--PRIVATE OPERATIONAL FIXED MICROWAVE SERVICE
9. The authority citation for part 94 continues to read as follows:
Authority: Sections 4, 303, 48 Stat. 1066, 1082, as amended; 47
U.S.C. 154, 303, unless otherwise noted.
10. Section 94.47 is amended by adding a new paragraph (c) to read
as follows:
Sec. 94.47 Transfer and assignment of station authorization.
* * * * *
(c) An applicant for voluntary transfer of control or assignment
under this section where the subject license was acquired by the
transferor or assignor through a system of random selection shall,
together with its application for transfer of control or assignment,
file with the Commission the associated contracts for sale, option
agreements, management agreements, or other documents disclosing the
total consideration that the applicant would receive in return for the
transfer or assignment of its license. This information should include
not only a monetary purchase price, but also any future, contingent,
in-kind, or other consideration (e.g., management or consulting
contracts either with or without an option to purchase; below-market
financing).
PART 95--PERSONAL RADIO SERVICES
11. The authority citation for part 95 continues to read as
follows:
Authority: Sections 4, 303, 48 Stat. 1066, 1082, as amended; 47
U.S.C. 154, 303, unless otherwise noted.
12. Section 95.821 is amended by adding two new sentences at the
end of the paragraph to read as follows:
Sec. 95.821 Application for transfer of control.
* * * An applicant for voluntary transfer of control or assignment
under this section where the subject license was acquired by the
transferor or assignor through a system of random selection shall,
together with its application for transfer of control or assignment,
file with the Commission the associated contracts for sale, option
agreements, management agreements, or other documents disclosing the
total consideration that the applicant would receive in return for the
transfer or assignment of its license. This information should include
not only a monetary purchase price, but also any future, contingent,
in-kind, or other consideration (e.g., management or consulting
contracts either with or without an option to purchase; below-market
financing).
[FR Doc. 94-4292 Filed 2-24-94; 8:45 am]
BILLING CODE 6712-01-M