[Federal Register Volume 82, Number 21 (Thursday, February 2, 2017)]
[Rules and Regulations]
[Pages 9009-9011]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-02218]


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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Part 73

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


Transition Progress Report Form and Filing Requirements for 
Stations Eligible for Reimbursement From the TV Broadcast Relocation 
Fund

AGENCY: Federal Communications Commission.

ACTION: Final rule.

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SUMMARY: In this document, the Federal Communications Commission 
(Commission) describes the information that must be provided in 
periodic progress reports (FCC Form 2100--Schedule 387 (Transition 
Progress Report)) by full power and Class A television stations that 
are 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 previously 
determined that reimbursable stations must file reports showing how the 
disbursed funds have been spent and what portion of the stations' 
construction in complete. These Transition Progress Reports will help 
the Commission, broadcasters, those involved in construction of 
broadcast facilities, other interested parties, and the public to 
assess how disbursed funds have been spent and to monitor the 
construction of stations.

DATES: Effective February 2, 2017.

ADDRESSES: Federal Communications Commission, 445 12th Street SW., 
Washington, DC 20554.

FOR FURTHER INFORMATION CONTACT: Joyce Bernstein, 
[email protected], (202) 418-1647, or Kevin Harding, 
[email protected], (202) 418-7077.

SUPPLEMENTARY INFORMATION: This is a summary of the Commission's 
document, DA 17-34, MB Docket No. 16-306, GN Docket No. 12-268, 
released January 10, 2017. The complete text of this document is 
available for inspection and copying during normal business hours in 
the FCC Reference Information Center, Portals II, 445 12th Street SW., 
Room CY-A257, Washington, DC 20554. The complete text of this document 
is also available for download at http://transition.fcc.gov/Daily_Releases/Daily_Business/2017/db0110/DA-17-34A1.pdf.

Synopsis

    The Media Bureau (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.docx. 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.
    In the Incentive Auction R&O, the Federal Communications Commission 
(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 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

[[Page 9010]]

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. In the Incentive Auction R&O, the Commission determined 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, and 
directed the Media Bureau to develop a form for such progress reports 
and set filing deadlines. The Media Bureau's Public Notice describes 
the information that must be provided in the Transition Progress 
Reports, and when and how the progress reports must be filed. The 
Transition Progress Report requires reimbursable stations to certify 
that certain steps towards construction of their post-auction 
facilities either have been completed or are not required. Some 
questions/items are meant to gather information regarding stations' 
completion of tasks necessary to meet major expenditure and 
construction milestones, such as taking delivery of specific pieces of 
equipment or completing all necessary permitting and tower work. Other 
questions require broadcasters to identify potential problems which 
they believe may make it difficult for them to meet their construction 
deadlines. These Transition Progress Reports will help the Commission, 
broadcasters, those involved in the construction of broadcast 
facilities, and other interested parties to assess how disbursed funds 
have been spent and to monitor the construction of stations.
    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, will invite 
the general public and the Office of Management and Budget (OMB) to 
comment on the information collection requirements contained in this 
document in a separate Federal Register Notice, as required by the 
Paperwork Reduction Act of 1995, Public Law 104-13, see 44 U.S.C. 3507.
    The Commission will send a copy of the document, DA 17-34, in a 
report to be sent to Congress and the Government Accountability Office 
pursuant to the Congressional Review Act, see 5 U.S.C. 801(a)(1)(A).
    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 Public Notice (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 
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

[[Page 9011]]

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, Media Bureau.
[FR Doc. 2017-02218 Filed 2-1-17; 8:45 am]
 BILLING CODE 6712-01-P