[Federal Register Volume 60, Number 246 (Friday, December 22, 1995)]
[Rules and Regulations]
[Pages 66491-66495]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-31089]
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DEPARTMENT OF COMMERCE
National Telecommunications and Information Administration
15 CFR Part 2301
[Docket Number 950613151-5304-02]
RIN 0660-XX02
Public Telecommunications Facilities Program (PTFP), National
Endowment for Children's Educational Television (NECET),
Telecommunications and Information Infrastructure Assistance Program
(TIIAP)
AGENCY: National Telecommunications and Information Administration,
Commerce.
ACTION: Final Policy Statement and Conforming Rule Amendments.
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SUMMARY: The National Telecommunications and Information Administration
(NTIA), U.S. Department of Commerce, is publishing a Final Policy
Statement modifying the interpretation of its policy on the use of
NTIA-funded equipment and materials in connection with sectarian
activities and making conforming rule amendments.
Effective Date: December 22, 1995.
FOR FURTHER INFORMATION CONTACT: Jana Gagner, (202) 482-1816.
SUPPLEMENTARY INFORMATION:
I. Introduction
On June 20, 1995, the National Telecommunications and Information
Administration, U.S. Department of Commerce (NTIA), published a notice
in the Federal Register proposing to modify NTIA's interpretation of
its policy regarding the use of Federal grant funds awarded by NTIA in
connection with sectarian activities.1 Eight parties filed
comments in response to the Notice.2 Based on these comments and
current jurisprudence, NTIA is hereby modifying its prior
interpretation of its rules, which prohibited the use of NTIA-funded
equipment, facilities, and materials in connection with any sectarian
activities, no matter how incidental.
\1\ 60 FR 32,142 (1995).
\2\ The following eight parties filed comments in response to
the Notice: Representative Richard Burr, the Corporation for Public
Broadcasting, Fordham University, National Public Radio, North
Carolina Public Radio Association, Lisa Owens, Southern Public
Radio, and Wake Forest University.
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Under its new interpretation, NTIA will retain its present
requirement that grant funds not be used for purposes the ``essential
thrust of which are sectarian,'' 3 but will modify its
interpretation of this requirement as follows. No more than an
attenuated or incidental benefit may inure to a sectarian interest if a
grantee uses NTIA-funded facilities in connection with a sectarian
activity. In addition, the use must fall within the broad scope of a
grant program's statutory purposes. A grantee cannot, however, use NTIA
grant funds primarily to support sectarian interests.
\3\ 15 CFR 2301.22(d). ``Sectarian'' is defined at 15 CFR 2301.1
as ``that which has the purpose or function of advancing or
propagating a religious belief.'' The PTFP regulation at 15 CFR
Sec. 2301.22(d) provides, ``During the period in which the grantee
possesses or uses the Federally funded facilities (whether or not
this period extends beyond the Federal interest period), the grantee
may not use or allow the use of the Federally funded equipment for
purposes the essential thrust of which are sectarian.'' NTIA
considers these phrases to mean the same thing.
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For the reasons discussed below, NTIA believes that this approach
is consistent with current jurisprudence.4 We also discuss below
in greater detail the issues raised in the June Notice regarding NTIA's
policy on sectarian activities,5 NTIA's interpretation of its
prior policy, comments received by NTIA in response to the Notice, and
the application of NTIA's new policy to each of its grant programs. Our
discussion is informed by relevant First Amendment jurisprudence,
including the recent Supreme Court holding in Rosenberger v. Rector and
Visitors of the University of Virginia, 115 S.Ct. 2510 (1995).
\4\ See Rosenberger v. Rector and Visitors of the University of
Virginia, 115 S.Ct. 2510 (1995); Zobrest v. Catalina Foothills Sch.
Dist. (Zobrest), 113 S.Ct. 2462 (1993); Witters v. Washington Dep't
of Services for the Blind, 474 U.S. 481, 487 (1986); Mueller v.
Allen, 463 U.S. 388 (1983).
\5\ Notice, supra note 1.
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II. Background
NTIA's Prior Policy. In 1979, the Public Telecommunications
Facilities Program (PTFP) of the NTIA adopted a rule prohibiting
funding for any equipment, facilities, and other materials that would
be used for any purposes the essential thrust of which is
sectarian.6 NTIA's interpretation of this rule has prohibited use
of NTIA-funded facilities and materials in connection with any
sectarian activity.7 In implementing this ``bright-line'' policy
interpretation, NTIA relied upon Lemon v. Kurtzman.8
\6\ See 44 FR 30898 (1979) for explanation of NTIA's previous
policy. PTFP's regulation regarding sectarian programming appears at
15 CFR 2301.22(d).
\7\ This interpretation stems from policy statement, infra fn.
11 and was applied in the Fordham case.
\8\ 403 U.S. 602 (1971). The constitutional test set forth in
Lemon--and the consistency between NTIA's new policy interpretation
and that test--are described in section III.A. of this policy
statement, infra.
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NTIA's policy interpretation did, however, permit the
``presentation in an educational or cultural context of music or art
with a religious theme [or] of programs about religion. It [also did]
not preclude distribution of instructional programming of a secular
nature to church-related educational institutions.'' 9 In
addition, sectarian-affiliated organizations could generally apply for
grant funds,10 subject, of course, to the prohibition on the use
of NTIA-funded equipment, facilities, and materials for purposes the
essential thrust of which is sectarian. NTIA's two newer grant
programs, the National Endowment for Children's Educational Television
(NECET) and the Telecommunications and Information Infrastructure
Assistance Program (TIIAP), also adopted the same policy and
interpretation.11
\9\ Public Telecommunications Facilities Program; Report and
Order, 44 FR 30898, 30902 (1979) (Report and Order).
\10\ Id. at 30,900-30,901. Previously, organizations organized
for primarily religious purposes were ineligible to apply for a PTFP
planning grant, although their affiliates were eligible to apply.
See 15 CFR 2301.4(b)(2). We are revising this rule to be consistent
with the new policy adopted herein, such that applicant eligibility
will be the same for both construction and planning grants. See the
conforming amendments to Sec. 2301.4 (a) and (b).
\11\ 60 FR 15636 (1995); 60 FR 8156 (1995).
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In enforcing this policy over the years, NTIA required grant
applicants to certify that they would comply with its policy by signing
an assurance to that effect.12 By relying upon this assurance,
NTIA avoided evaluating programming schedules for sectarian content as
a routine practice. Such evaluation occurred only if information
contained in the application itself suggested that the applicant would
violate NTIA's policy, a complaint was filed with NTIA, or NTIA
otherwise became aware of information that suggested that its policy
was being or would be violated. By not routinely evaluating program
content and information transmitted using NTIA-funded equipment and
materials, NTIA avoided excessive Government entanglement with
religion,
[[Page 66492]]
as proscribed by the Supreme Court in Lemon v. Kurtzman.13
\12\ The applicant ``will not use or allow the use of the
facilities for essentially sectarian purposes for as long as the
Applicant possesses or uses the facilities . . . .'' Public
Telecommunications Facilities Program, Grant Application,
Assurances, no. 30, at 9.
\13\ For a discussion of this point, see Section III.A. of this
policy statement.
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The Challenge by Fordham University. In 1993, Fordham University
sued the Department of Commerce, alleging that NTIA's policy on
sectarian broadcasting violated its right to free exercise of religion
and its freedom of speech rights under the First Amendment of the
Constitution. In Fordham University v. Brown, the court upheld NTIA's
bright-line approach with respect to the PTFP as consistent with the
First Amendment.14 In dicta, however, the court noted that it did
not consider whether there were other acceptable interpretations of the
Establishment Clause.15
\14\ 856 F. Supp. 684 (D.D.C. 1994), appeal docketed, No. 94-
5229 (D.C. Cir. Aug. 22, 1994).
\15\ Id. at 697-698.
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Since the Fordham decision, NTIA has become aware that some public
broadcast stations include in their schedules programs that might
constitute impermissible sectarian programming, which could make them
ineligible for PTFP grants. This was highlighted, in fact, following
the Fordham decision, when NTIA received several requests to modify its
policy.
Issuance of the Notice. As a result, NTIA sought comment on whether
it should modify its policy regarding sectarian programming and
information. Specifically the Notice sought comment on: (1) Whether the
current prohibition on using NTIA grant funds in connection with any
sectarian activities should be continued, or whether there are
alternative approaches that would also be consistent with the First
Amendment; (2) the underlying policy rationale for a given approach;
(3) how such policy would, as practical and constitutional matters, be
implemented and enforced; (4) whether the same policy could and should
be applied to all three NTIA grant programs (PTFP, TIIAP, and NECET)
and, if not, what policy should pertain to each grant program; and (5)
whether the current definition of ``sectarian'' would continue to be
supportable if NTIA's current policy were modified.
The Rosenberger Decision. Subsequent to the issuance of NTIA's
Notice, the Supreme Court decided Rosenberger v. Rector and Visitors of
the University of Virginia,16 which further supports NTIA's
announced policy interpretation change. The Supreme Court held in
Rosenberger that a state university had erred in relying on the First
Amendment's Establishment Clause to deny grant funding to a student
group publisher of a Christian magazine, when that student group
otherwise satisfied neutral funding criteria applied by the university
in making financial grants to other student organizations. As discussed
in more detail below, this decision serves as a basis, in part, for the
new policy approach adopted by NTIA.
\16\ 115 S.Ct. 2510 (1995).
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Comments Filed in Response to the Notice. All but one of the eight
commenters supported a change in NTIA's policy interpretation. The one
commenter favoring retention of NTIA's long-term policy objected to a
religious organization receiving any benefit, however incidental, from
NTIA's grant programs.17 A majority of the supporting commenters,
however, relied upon the recent Supreme Court case, Rosenberger, in
arguing that a policy change was warranted. Most agreed that
Rosenberger requires that the Federal government behave in a neutral
manner toward religion. Two commenters recommended that NTIA adopt a
specified or maximum percentage for the amount of permissible sectarian
programming.18 Other commenters recommended allowing a
``reasonable minimal amount of sectarian programming.'' 19 Two
other commenters expressed some concern that the proposed change in
policy could result in excessive government entanglement with
religion.20
\17\ Comments of Lisa Owens.
\18\ Comments of National Public Radio at 2,5; Comments of Wake
Forest at 2-3.
\19\ Comments of North Carolina Public Radio Association at 1;
Comments of Honorable Richard Burr at 1; Comments of Southern Public
Radio at 1.
\20\ Comments of Corporation for Public Broadcasting at 3;
Comments of National Public Radio at 3.
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As noted above, we solicited comments on whether the definition of
``sectarian'' needed to be altered in light of a possible policy
change. Most commenters agreed that no change in the definition of
``sectarian'' was required to allow NTIA to modify its policy
interpretation. One commenter contended, however, that the definition
of ``public telecommunications services'' had to be redefined because
it provides that public telecommunications services ``[do] not include
essentially sectarian programming.'' 21 This commenter also
maintained that NTIA's prior policy should be changed because it
burdened individuals' free exercise of religion in violation of the
Religious Freedom Restoration Act.22
\21\ Comments of Fordham University at 16-17.
\22\ Comments of Fordham University at 9.
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III. Application of the Modified Policy To NTIA'S Grant Programs
As indicated, NTIA's new policy will retain the requirement that
grant funds not be used for purposes the essential thrust of which is
sectarian. The interpretation of that requirement will be modified,
however, such that as long as the grant funds are used to fulfill the
statutory purposes of the grant programs, attenuated or incidental
benefits to sectarian interests will be permissible.
A. Constitutional Basis for Modified Policy
We believe the alternative approach we are now adopting passes
constitutional muster under First Amendment case law. Having analyzed
our new approach in light of Lemon v. Kurtzman,23 we conclude that
our new policy is consistent with Lemon and other Supreme Court
jurisprudence. Lemon established a three-prong test to determine
whether government action would have the ``primary effect'' of
establishing religion in violation of the Establishment Clause. Under
Lemon, the constitutionality of a statute, regulation, or funding
policy depends on whether: (1) it has a secular legislative purpose;
(2) its principal or primary effect is one that neither advances nor
inhibits religion; and (3) it avoids ``an excessive government
entanglement with religion.'' 24 If any one of these three
questions is answered in the negative, government action is deemed
unconstitutional.
\23\ 403 U.S. 602 (1971).
\24\ Id. at 612-613.
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Each of NTIA's grant programs has a secular purpose, which remains
unchanged under the new policy, and thus NTIA's change in policy
interpretation passes the first prong of the Lemon test. PTFP promotes
public broadcasting, NECET supports development of children's
programming, and TIIAP promotes new telecommunications technologies.
Each grant award will be reviewed to ensure it meets the appropriate
statutory purpose.
NTIA's new policy interpretation also satisfies the second prong of
the Lemon test as NTIA grant funds still may not be used primarily to
advance or inhibit religion. As recently underscored by the Rosenberger
court, programs that neutrally extend benefits to recipients pass
Establishment Clause muster, if religious interests are only
incidentally served:
[[Page 66493]]
[T]he [constitutional] guarantee of neutrality [toward religion]
is respected, not offended, when the government, following neutral
criteria and evenhanded policies, extends benefits to recipients
whose ideologies and viewpoints, including religious ones, are broad
and diverse. . . . More than once have we rejected the position that
the Establishment Clause even justifies, much less requires, a
refusal to extend free speech rights to religious speakers who
participate in broad-reaching government programs neutral in design.
115 S.Ct. at 2521-22 (emphasis added).
NTIA's new policy interpretation will ensure both that the program
funds are neutrally provided and that any benefit to religion will be
attenuated or incidental. NTIA will behave neutrally toward all grant
applicants. All grant applicants (including sectarian organizations)
will be eligible for funding (assuming they meet NTIA's other
eligibility requirements), provided they comply with the policy that
NTIA grant funds will not be used for purposes the essential thrust of
which is sectarian.25 If, as we discuss further below, questions
arise regarding compliance, however, NTIA will determine whether the
recipients' use of grant funds has the primary, and thus impermissible,
effect of advancing or inhibiting religion. Where some benefit appears
to inure to a sectarian interest, further analysis of the potential
benefit will be undertaken to determine whether it is merely
incidential or attenuated and thus permissible.
\25\ The PTFP regulation at 15 C.F.R. Sec. 2301.22(d) provides:
``During the period in which the grantee possesses or uses the
Federally funded facilities (whether or not this period extends
beyond the Federal interest period), the grantee may not use or
allow the use of the Federally funded equipment for purposes the
essential thrust of which are sectarian.'' The assurance contained
in the PTFP application kit provides that the applicant certify that
he/she ``will not use or allow the use of the facilities for
essentially sectarian purposes for as long as the Applicant
possesses or uses the facilities, whether or not this period extends
beyond the ten-year Federal interest period following completion of
this project.'' NTIA considers these phrases to mean the same thing.
See also n. 3, supra.
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With regard to the third prong of the Lemon test--avoiding
excessive entanglement of goverment with religion--NTIA's
administrative procedures will remain esssentially the same as before.
NTIA will avoid analyzing individual programs unless a compliance
problem comes to NTIA's attention. Thus, under the new policy,
excessive government entanglement with religion will continue to be
avoided as under our prior policy.
B. Application of New Interpretation to Particular NTIA Programs
Specific application of this new interpretation to each of the
three NTIA grant programs is discussed below.
1. The Public Telecommunications Facilities Program (PTFP).
Under the PTFP rules, a sectarian organization is eligible to apply
as long as it meets the general PTFP eligibility requirements.26
The purpose of PTFP is to make public telecommunications services
available to U.S. citizens. PTFP funds the construction and planning of
public telecommunications services,27 subject to the eligibility
requirements for applicants.28
\26\ To be eligible for a construction or planning grant, an
applicant must be one of the following: a public broadcast station;
a noncommercial telecommunications entity; a system of public
telecommunications entities; a nonprofit foundation, corporation,
institution, or association organized primarily for educational or
cultural purposes; or a state or local government (or any agency
thereof), or a political or special purpose subdivision of a state.
See 15 CFR Sec. 2301.4(a), (b).
\27\ 47 U.S.C. 390-393; 15 CFR Part 2301 et seq.
\28\ For definitions of eligible organizations and projects, see
15 CFR 2301.4.
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To determine whether a grant would have the primary effect of
establishing religion, NTIA will apply the Lemon test. To determine
eligibility and the overall purpose of the planning and construction of
public telecommunications facilities, NTIA will examine the applicant's
proposal and its organizational purposes, as required by the statutory
criteria. This approach ensures that grant awards will neither advance
nor inhibit religion.
To avoid Government entanglement in religion and programming
decisions, NTIA will continue its policy of reviewing the project
narrative and supporting documents, while also relying on the
applicants' assurances that they comply with NTIA's policy on sectarian
activities. General monitoring of grantees' activities will continue
under the normal administrative process pertaining to Federal
assistance programs.
Accordingly, as under our prior policy, submission of broadcast
schedules and program listings will not generally be required. We will
not review the content of all programs or activities for sectarian
content unless NTIA receives a complaint or otherwise becomes aware
that an applicant or grantee may be using NTIA-funded equipment or
materials in connection with a project the essential thrust of which is
sectarian. For example, under the prior approach, a single sectarian
program in a broadcast schedule would have rendered the project
ineligible for funding. Under our new approach, a single program with
sectarian aspects will not necessarily render the project
ineligible.29 In such instances, NTIA will examine the overall
purpose of the project to determine if it is consistent with the PTFP's
statutory purposes. Further inquiry may be made as necessary to ensure
that any benefit to a sectarian interest is merely attenuated or
incidental as permitted under current jurisprudence.
\29\ While this example uses one program, we wish to emphasize
that we are not setting any percentage or hourly maximum on the
amount of sectarian programming that would be considered allowable.
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To implement this new approach, we do not need to revise the
language in the PTFP regulation, assurance or definition of
``sectarian'' as it pertains to our policy on sectarian
activities.30 We shall, however, revise the definition of ``public
telecommunications services'' to delete the last sentence which
provides, ``It does not include essentially sectarian programming.''
31
\30\ See 15 CFR 2301.1; 15 CFR 2301.5(d)(2)(xvi); 15 CFR
2301.22(d). The PTFP regulation at 15 CFR 2301.22(d) provides:
``During the period in which the grantee possesses or uses the
Federally funded facilities (whether or not this period extends
beyond the Federal interest period), the grantee may not use or
allow the use of the Federally funded equipment for purposes the
essential thrust of which are sectarian.'' The assurance contained
in the PTFP application kit provides that the applicant certify that
he/she ``will not use or allow the use of the facilities for
essentially sectarian purposes for as long as the Applicant
possesses or uses the facilities, whether or not this period extends
beyond the ten-year Federal interest period following completion of
this project.'' NTIA considers these phrases to mean the same thing.
\31\ 15 CFR 2301.1.
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2. National Endowment for Children's Educational Television (NECET)
Pursuant to NECET's enabling legislation,32 in order to be
eligible to apply for a grant, an applicant must be one of the
following: an individual, corporation (for-profit or not-for-profit),
partnership, association, joint stock company, trust, or state or local
governmental entity.33 A sectarian organization is eligible to
apply, as long as it meets these eligibility requirements. NECET funds
are available ``to enhance the education of children through the
creation and production of television programming specifically directed
toward the development of fundamental intellectual skills.'' 34
Presently, in making a NECET grant, NTIA must, as a part of its
evaluation and review process, review program proposals and
[[Page 66494]]
content to determine whether it would meet these requirements.
\32\ 47 U.S.C. 394.
\33\ 47 U.S.C. 394(i)(2).
\34\ 47 U.S.C. 394 (a).
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Accordingly, review under our new policy interpretation will be
essentially the same as before. The policy will be applied to each
individual program for which a grant is sought, and the grantee must
comply with the policy that NTIA grant funds will not be used for
purposes the essential thrust of which is sectarian.35 If the
essential purpose of a program is to advance or inhibit religion, its
funding would not be permissible. We do not believe the likelihood of
entanglement is any greater than it was under our prior policy.
\35\ Each award will contain a special award condition which
requires that: ``The grantee will neither use nor allow the NTIA-
funded equipment, facilities or programming to be used for purposes
the essential thrust of which is sectarian.'' There are often
special award conditions attached to each award which provide
conditions on the Federal funds in addition to those required by OMB
Circulars. As noted above in n. 30, supra, NTIA considers this
language to mean the same thing as not allowing the NTIA-funded
equipment, facilities or programming to be used for essentially
sectarian purposes.
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Under our prior policy interpretation, if, for example, part of a
program encompassed a Catholic mass, the entire project would have been
considered ineligible for funding. In contrast, under the new approach,
we will make a determination on eligibility based on the test that any
benefit to a sectarian interest resulting from the receipt of NTIA
funds must be attenuated or incidental.
3. Telecommunications and Information Infrastructure Assistance Program
(TIIAP)
To be eligible for a TIIAP grant, an applicant must be one of the
following: a state or local government, an accredited college or
university, or a non-profit entity. Individuals and for-profit
organizations are not eligible to apply. A sectarian organization is
eligible to apply, as long as the organization meets these
requirements. TIIAP funds are provided for the ``planning and
construction of telecommunications networks for the provision of
educational, cultural, health care, public information, public safety
or other social services.'' 36
\36\ Pub. L. No. 103-317, 1994 U.S.C.C.A.N. (108 Stat.) 1724,
1747; 47 U.S.C. Sec. 390-393.
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In contrast to PTFP, however, where the broadcaster maintains
editorial control, a TIIAP grantee may sometimes, but not always,
exercise editorial control over the content of its communications
network. For example, a network may involve a bulletin board where the
operator does not have control of messages sent among individuals. In
some cases, therefore, it could be difficult for a TIIAP applicant to
certify that facilities will not be used for essentially sectarian
purposes. Accordingly, TIIAP awards will be subject to the policy which
requires that the NTIA-funded facilities will not be used for
essentially sectarian purposes to the extent that the applicant
controls the content of network communications.37
\37\ The special award condition for the TIIAP awards will read
as follows: ``During the Federal interest period, to the extent that
the grantee maintains control over network transmissions, the
grantee will neither use nor allow the NTIA-funded network to be
used for purposes the essential thrust of which is sectarian.'' As
noted in fn. 35, supra, NTIA considers this language to mean the
same thing as not allowing the NTIA-funded network to be used for
essentially sectarian purposes.
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To avoid excessive entanglement in religion, we will not review the
content of information transmitted over TIIAP-funded networks unless
NTIA receives a complaint or otherwise becomes aware that an applicant
or grantee is using NTIA funded equipment or materials in connection
with sectarian activities. In such instances, rather than examining
only the questioned activity, NTIA will examine the overall purpose of
the project to determine whether NTIA funding provides an attenuated or
incidental benefit to the sectarian interest and thus whether it is
permissible.
For example, TIIAP might provide funding to a local organization to
establish a public computer bulletin board. As part of this bulletin
board, a church-affiliated youth group might post information regarding
meetings and meeting times, which includes a meeting time for a worship
service. Under NTIA's prior policy, this project might have been
ineligible for funding because the information regarding the sectarian
meetings and meeting times would have appeared on the network. Applying
NTIA's new policy interpretation, we would examine the overall purpose
of the project to determine whether it fell within the TIIAP's
statutorily authorized purposes and whether any benefit to religion was
merely incidental or attenuated. If the answer to both questions was
yes, such a grant would be permissible under the new policy
interpretation.
IV. Conclusion
NTIA's modified policy interpretation appropriately harmonizes the
First Amendment's Free Exercise and Establishment Clauses, consistent
with current jurisprudence. The new interpretation of our policy
concerning use of NTIA grant funds in connection with sectarian
activities will provide grant applicants greater flexibility, while
continuing to avoid unwarranted government entanglement with religion.
Rulemaking Requirements
1. It has been determined that this rule is not significant for
purposes of Executive Order 12866.
2. Because this rule relates to public property, loans, grants,
benefits, or contracts, it is exempt from the notice and comment and
delayed effective date requirements of the Administrative Procedure Act
(APA).
3. Because a notice of proposed rulemaking is not required by the
APA or any other law, a Regulatory Flexibility Analysis is not required
and was not prepared.
4. This rule contains information collection requirements subject
to the provisions of the Paperwork Reduction Act. This collection has
clearance from the Office of Management and Budget under OMB Approval
No. 0660-0003.
5. This policy does not contain policies with federalism
implications sufficient to warrant preparation of a federalism
assessment under E.O. 12612.
List of Subjects in 15 CFR Part 2301
Administrative procedure, Grant programs--communications, Reporting
and recordkeeping requirements, Telecommunications.
(Catalog of Federal Domestic Assistance No. 11.550)
Dated: December 15, 1995.
Larry Irving,
Assistant Secretary of Communications and Information.
For the reasons set out in the preamble, 15 CFR part 2301 is
amended as follows:
PART 2301--PUBLIC TELECOMMUNICATIONS FACILITIES PROGRAM
1. The authority for part 2301 continues to read as follows:
Authority: Public Telecommunications Financing Act of 1978, Pub.
L. 95-567, 92 Stat. 2405, codified at 47 U.S.C. 390-394, 397-399b;
the Public Broadcasting Amendments Act of 1981, Pub. L. 97-35, 95
Stat. 725; the Consolidated Omnibus Budget Reconciliation Act of
1985, Pub. L. 99-272, section 5001, 100 Stat. 117; and the Public
Telecommunications Act of 1988, Pub. L. 100-626, 102 Stat. 3207.
2. Section 2301.1 is amended by revising the definition of public
telecommunications services to read as follows:
Sec. 2301.1 Definitions.
* * * * *
[[Page 66495]]
Public telecommunications services means noncommercial educational
and cultural radio and television programs, and related noncommercial
instructional or informational material that may be transmitted by
means of electronic communications.
* * * * *
3. Section 2301.4(a) is revised to read as follows:
Sec. 2301.4 Eligible organizations and scope of projects.
(a) Eligible applicants (Construction and Planning Grants). In
order to apply for and receive a PTFP Construction or Planning Grant,
an applicant must be:
(1) A public or noncommercial educational broadcast station;
(2) A noncommercial telecommunications entity;
(3) A system of public telecommunications entities;
(4) A nonprofit foundation, corporation, institution, or
association organized primarily for educational or cultural purposes;
or
(5) A state or local government (or agency thereof), or a political
or special purpose subdivision of a state.
* * * * *
4. Section 2301.4 is further amended by removing paragraph (b),
redesignating paragraph (c) as (b), and revising the newly designated
paragraph (b) to read as follows:
* * * * *
(b) Scope of projects. An applicant that is eligible under
paragraph (a) of this section may file an application with the agency
for a planning or construction grant to achieve the following:
(1) The provision of new public telecommunications facilities to
extend service to areas currently not receiving public
telecommunications services;
(2) The expansion of the service areas of existing public
telecommunications entities;
(3) The establishment of new public telecommunications entities
serving areas currently receiving public telecommunications services;
or
(4) The improvement of the capabilities of existing licensed public
broadcast stations to provide public telecommunications services.
* * * * *
5. Paragraphs (d) through (f) of Sec. 2301.4 are redesignated
paragraphs (c) through (e) respectively.
[FR Doc. 95-31089 Filed 12-21-95; 8:45 am]
BILLING CODE 3510-60-P