[Federal Register Volume 71, Number 165 (Friday, August 25, 2006)]
[Proposed Rules]
[Pages 50380-50382]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E6-14157]


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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Parts 73 and 76

[FCC 06-33]


Second Further Notice of Proposed Rule Making, In the Matter of 
Children's Television Obligations of Digital Television Broadcasters

AGENCY: Federal Communications Commission.

ACTION: Proposed rule; correction.

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SUMMARY: On March 27, 2006 (71 FR 15145), the Commission published 
proposed rules in the Second Further Notice which sought public comment 
on a joint proposal filed by several broadcast and programming entities 
and children's television advocates proposing revisions to previously 
adopted requirements of television licensees and cable operators with 
respect to children's television programming. The Commission 
inadvertently omitted the Initial Regulatory Flexibility Analysis, 
which was part of the item adopted by the Commission, in the Federal 
Register publication. This document corrects the Federal Register as it 
appeared.

DATES: Comments on the Initial Regulatory Flexibility Analysis only are 
due September 1, 2006. Reply comments are due September 8, 2006.

ADDRESSES: You may submit comments, identified by MM Docket No. 00-167, 
by any of the following methods:
    [ballot] Federal eRulemaking Portal: http://www.regulations.gov. 
Follow the instructions for submitting comments.
    [ballot] Federal Communications Commission's Web site: http://www.fcc.gov/cgb/ecfs/. Follow the instructions for submitting comments.
    [ballot] E-mail: [email protected]. Include the following words in the 
body of the message, ``get form.'' A sample form and directions will be 
sent in response.
    [ballot] Mail: 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 should be addressed to 445 12th 
Street, SW., Washington, DC 20554.
    [ballot] People with Disabilities: Contact the FCC to request 
reasonable accommodations (accessible format documents, sign language 
interpreters, CART, etc.) by e-mail: [email protected] or phone: 202-418-
0530 or TTY: 202-418-0432.
    For detailed instructions for submitting comments and additional 
information on the rulemaking process, see the SUPPLEMENTARY 
INFORMATION section of this document.

FOR FURTHER INFORMATION CONTACT: Kim Matthews, Policy Division, Media 
Bureau, Federal Communications Commission, (202) 418-2154.

SUPPLEMENTARY INFORMATION: Following is the Initial Regulatory 
Flexibility Act analysis to be associated with the document proposing 
to amend parts 73 and 76 of the Commission's rules that was published 
in the Federal Register on March 27, 2006 (71 FR 15145).
    Initial Regulatory Flexibility Analysis. As required by the 
Regulatory Flexibility Act of 1980, as amended (the ``RFA''), the 
Commission has prepared this Initial Regulatory Flexibility Analysis 
(``IRFA'') of the possible significant economic impact of the policies 
and rules proposed in the Second Further Notice of Proposed Rule Making 
(``Notice'') on a substantial number of small entities. Written public 
comments are requested on this IRFA

[[Page 50381]]

only. Comments must be identified as responses to the IRFA and must be 
filed by the deadlines for comments indicated on the first page of this 
document. The Commission has sent a copy of the Notice, including this 
IRFA, to the Chief Counsel for Advocacy of the Small Business 
Administration (``SBA''). In addition, the Notice has been published in 
the Federal Register.
    Need for, and Objectives of, the Proposed Rules. Our goal in 
commencing this proceeding is to determine whether, and to what extent, 
the Commission should adopt proposed recommendations for modification 
of rules previously adopted by the Commission in the above-captioned 
proceeding. On September 9, 2004, the Commission adopted a Report and 
Order and Further Notice of Proposed Rule Making, 70 FR 25 (January 3, 
2005) (``Order'') in this proceeding. The rules in the Order pertain to 
the obligation of television licensees to provide educational 
programming for children and the requirement that television licensees 
protect children from excessive and inappropriate commercial messages. 
Among other things, the Order adopted rules regarding the use of Web 
site addresses during children's programming, revised the definition of 
commercial matter, placed a limit on the number of preemptions of core 
children's programming, and created children's programming requirements 
for those multicasting free video programming streams. In this 
proceeding, we will evaluate proposed modifications to these rules as 
presented in a Joint Proposal filed by representatives of broadcast and 
cable industries and public interest groups interested in children's 
television. First, the Joint Proposal suggests modifications pertaining 
to the display of Web sites during core children's programming. Second, 
the Joint Proposal recommends further revisions to the definition of 
commercial matter. Third, the Joint Proposal suggests that the 
Commission lift its numerical limits on children's programming 
preemptions. Finally, the Joint Proposal recommends clarifications to 
the children's programming requirements for those multicasting free 
video programming streams.
    Legal Basis. The authority for the action proposed in this 
rulemaking is contained in Sections 4(i) & (j), 303, 307, 309 and 336 
of the Communications Act of 1934 as amended, 47 U.S.C. 154(i) & (j), 
303, 307, 309 and 336.
    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 Small Business Administration (``SBA'').
    Television Broadcasting. The proposed rules and policies apply to 
television broadcast licensees, and potential licensees of television 
service. The SBA defines a television broadcast station as a small 
business if such station has no more than $12 million in annual 
receipts. Business concerns included in this industry are those 
``primarily engaged in broadcasting images together with sound.'' 
According to Commission staff review of the BIA Publications, Inc. 
Master Access Television Analyzer Database (BIA) on October 18, 2005, 
about 873 of the 1,307 commercial television stations (or about 67 
percent) have revenues of $12 million or less and thus qualify as small 
entities under the SBA definition. 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 do not exclude any television 
station from the definition of a small business on this basis and are 
therefore over-inclusive to that extent. Also as noted, an additional 
element of the definition of ``small business'' is that the entity must 
be independently owned and operated. We note that it is difficult at 
times to assess these criteria in the context of media entities and our 
estimates of small businesses to which they apply may be over-inclusive 
to this extent.
    Cable and Other Program Distribution. The SBA has developed a small 
business size standard for cable and other program distribution 
services, which includes all such companies generating $12.5 million or 
less in revenue annually. This category includes, among others, cable 
systems operators, closed circuit television services, direct broadcast 
satellite services, multipoint distribution systems, satellite master 
antenna systems, subscription television services and open video 
systems. According to Census Bureau data for 1997, there were 1,311 
firms in this category, total, that had operated for the entire year. 
Of this total, 1,180 firms had annual receipts of under $10 million and 
an additional 52 firms had receipts of $10 million or more but less 
than $25 million. Consequently, the Commission estimates that the 
majority of providers in this service category are small businesses 
that may be affected by the rules and policies adopted herein.
    Cable System Operators (Rate Regulation Standard). The Commission 
has developed its own small business size standard for cable system 
operators, for purposes of rate regulation. Under the Commission's 
rules, a ``small cable company'' is one serving fewer than 400,000 
subscribers nationwide. The most recent estimates indicate that there 
were 1,439 cable operators who qualified as small cable system 
operators at the end of 1995. Since then, some of those companies may 
have grown to serve over 400,000 subscribers, and others may have been 
involved in transactions that caused them to be combined with other 
cable operators. Consequently, the Commission estimates that there are 
now fewer than 1,439 small entity cable system operators that may be 
affected by the rules and policies adopted herein.
    Cable System Operators (Telecom Act Standard). The Communications 
Act of 1934, as amended, also contains 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 1 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.'' The Commission has determined that there are 67,700,000 
subscribers in the United States. Therefore, an operator serving fewer 
than 677,000 subscribers shall be deemed a small operator, if its 
annual revenues, when combined with the total annual revenues of all 
its affiliates, do

[[Page 50382]]

not exceed $250 million in the aggregate. Based on available data, the 
Commission estimates that the number of cable operators serving 677,000 
subscribers or fewer, totals 1,450. The Commission neither requests nor 
collects information on whether cable system operators are affiliated 
with entities whose gross annual revenues exceed $250 million, and 
therefore is unable, at this time, to estimate more accurately the 
number of cable system operators that would qualify as small cable 
operators under the size standard contained in the Communications Act 
of 1934.
    Description of Projected Reporting, Recordkeeping and Other 
Compliance Requirements. While the Joint Proposal proposes certain 
changes to the reporting requirements, we do not expect these changes 
to impose significant additional reporting or recordkeeping 
requirements. We expect the requirements to be the same for large and 
small entities. We seek comment on whether others perceive a need for 
less extensive recordkeeping or compliance requirements for small 
entities.
    Steps Taken to Minimize Significant Economic Impact on Small 
Entities and Significant Alternatives Considered. The RFA requires an 
agency to describe any significant, specifically small business, 
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 and reporting requirements under the rule for such small 
entities; (3) the use of performance rather than design standards; and 
(4) an exemption from coverage of the rule, or any part thereof, for 
such small entities.'' The proposals in the Notice, as discussed in 
Section A, would apply equally to large and small entities and may 
diminish the economic impact of the regulations on all entities. For 
example, the change proposing that the Commission lift its numerical 
limits on children's programming preemptions would, if adopted, provide 
programmers greater flexibility in the scheduling of children's 
programming. In addition, the proposed modifications pertaining to the 
display of websites during core children's programming would, if 
adopted, provide greater flexibility in the regulations pertaining to 
commercial matter. We welcome comment on modifications of the proposals 
if such modifications might assist small entities and especially if 
such are based on evidence of potential differential impact of the 
regulations. Specifically, we welcome comment as to whether or not 
small entities would like the Commission to adopt the provisions of the 
Joint Proposal, adopt different modifications to the rules, or enforce 
the existing rules.
    Federal Rules that May Duplicate, Overlap, or Conflict With the 
Commission's Proposals. None.
    Comment Information. Pursuant to Sec. Sec.  1.415 and 1.419 of the 
Commission's rules, 47 CFR 1.415, 1.419, interested parties may file 
comments and reply comments on or before the dates indicated on the 
first page of this document. Comments may be filed using: (1) The 
Commission's Electronic Comment Filing System (ECFS), (2) the Federal 
Government's eRulemaking Portal, or (3) by filing paper copies. 
Electronic Filers: Comments may be filed electronically using the 
Internet by accessing the ECFS: http://www.fcc.gov/cgb/ecfs/ or the 
Federal eRulemaking Portal: http://www.regulations.gov. Filers should 
follow the instructions provided on the Web site for submitting 
comments. Paper Filers: Parties who choose to file by paper must file 
an original and four copies of each filing. If more than one docket or 
rulemaking number appears in the caption of this proceeding, filers 
must submit two additional copies for each additional docket or 
rulemaking number. Filings can be sent by hand or messenger delivery, 
by commercial overnight courier, or by first-class or overnight U.S. 
Postal Service mail (although we continue to experience delays in 
receiving U.S. Postal Service mail). All filings must be addressed to 
the Commission's Secretary, Office of the Secretary, Federal 
Communications Commission. The Commission's contractor will receive 
hand-delivered or messenger-delivered paper filings for the 
Commission's Secretary at 236 Massachusetts Avenue, NE., Suite 110, 
Washington, DC 20002. The filing hours at this location are 8 a.m. to 7 
p.m. All hand deliveries must be held together with rubber bands or 
fasteners. Any envelopes 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 should be addressed to 445 12th Street, SW., 
Washington, DC 20554. People with Disabilities: To request materials in 
accessible formats for people with disabilities (braille, large print, 
electronic files, audio format), send an e-mail to [email protected] or 
call the Consumer & Governmental Affairs Bureau at 202-418-0530 
(voice), 202-418-0432 (tty).

Federal Communications Commission.
Marlene H. Dortch,
Secretary.
[FR Doc. E6-14157 Filed 8-24-06; 8:45 am]
BILLING CODE 6712-01-P