[Federal Register Volume 82, Number 86 (Friday, May 5, 2017)]
[Rules and Regulations]
[Pages 21127-21136]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-09002]


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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Part 73

[MB Docket No. 12-106; FCC 17-41]


Noncommercial Educational Station Fundraising for Third-Party 
Non-Profit Organizations

AGENCY: Federal Communications Commission.

ACTION: Final rule.

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SUMMARY: In this document, the Commission revises its rules to allow 
noncommercial educational (NCE) broadcast stations to conduct limited 
on-air fundraising activities that interrupt regular programming for 
the benefit of third-party non-profit organizations. Permitting NCE 
stations to conduct third-party fundraising on a limited basis will 
serve the public interest by enabling NCE stations to support charities 
and other non-profit organizations in their fundraising efforts for 
worthy causes without undermining the noncommercial nature of NCE 
stations or their primary function of serving their communities of 
license through educational programming.

DATES: Effective July 5, 2017, except for the amendments to Sec. Sec.  
73.503(e)(1), 73.621(f)(1), and 73.3527(e)(14), which contain new or 
modified information collection requirements that require approval by 
the Office of Management and Budget (OMB) under the Paperwork Reduction 
Act (PRA) and will become effective after the Commission publishes

[[Page 21128]]

a document in the Federal Register announcing such approval and the 
relevant effective date.

FOR FURTHER INFORMATION CONTACT: For additional information, contact 
Kathy Berthot, [email protected], Media Bureau, Policy Division, at 
(202) 418-7454. For additional information concerning the PRA 
information collection requirements contained in this document, contact 
Cathy Williams, Federal Communications Commission, at (202) 418-2918, 
or via email [email protected].

SUPPLEMENTARY INFORMATION: This is a summary of the Commission's Report 
and Order, FCC 17-41, adopted and released on April 20, 2017. The full 
text is available for public inspection and copying during regular 
business hours in the FCC Reference Center, Federal Communications 
Commission, 445 12th Street SW., CY-A257, Washington, DC 20554. This 
document will also be available via ECFS (http://www.fcc.gov/cgb/ecfs/
). Documents will be available electronically in ASCII, Word 97, and/or 
Adobe Acrobat. Alternative formats are available for people with 
disabilities (Braille, large print, electronic files, audio format), by 
sending an email to [email protected] or calling the Commission's Consumer 
and Governmental Affairs Bureau at (202) 418-0530 (voice), (202) 418-
0432 (TTY).
    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 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. In addition, pursuant to the Small Business 
Paperwork Relief Act of 2002, Public Law 107-198, see 44 U.S.C. 
3506(c)(4), we previously sought specific comment on how we might 
further reduce the information collection burden for small business 
concerns with fewer than 25 employees.
    Congressional Review Act: The Commission will send a copy of this 
Report and Order to Congress and the Government Accountability Office 
pursuant to the Congressional Review Act, 5 U.S.C. 801(a)(1)(A).

Synopsis

I. Introduction

    1. In this Report and Order, we revise our rules to allow NCE 
broadcast stations to conduct limited on-air fundraising activities 
that interrupt regular programming for the benefit of third-party non-
profit organizations (hereafter, ``third-party fundraising''). Relaxing 
our longstanding third-party fundraising restrictions will serve the 
public interest by enabling NCE stations to support charities and other 
non-profit organizations in their fundraising efforts for worthy 
causes. Third-party fundraising programs may also help to raise public 
awareness about important topics, such as poverty, health care, and 
humanitarian issues. We conclude that permitting NCE stations to 
conduct third-party fundraising on a limited basis will not undermine 
the noncommercial nature of NCE stations or their primary function of 
serving their communities of license through educational programming.

II. Background

    2. Under Section 399B of the Communications Act, 47 U.S.C. 399B, 
NCE stations are prohibited from broadcasting ``advertisements,'' 
defined as any message or other programming material which is broadcast 
or otherwise transmitted in exchange for any remuneration, and which is 
intended--
    (1) to promote any service, facility, or product offered by any 
person who is engaged in such offering for profit;
    (2) to express the views of any person with respect to any matter 
of public importance or interest; or
    (3) to support or oppose any candidate for political office.
    Further, pursuant to Sec. Sec.  73.503(d) and 73.621(e) of the 
Commission's rules, an NCE station may not conduct fundraising 
activities that substantially alter or suspend regular programming and 
are designed to benefit any entity other than the station itself. 
``Regular programming'' includes programming that ``the public 
broadcaster ordinarily carries, but does not encompass those 
fundraising activities that suspend or alter their normal programming 
fare.'' The third-party fundraising restrictions reflect the concern 
that ``educational stations are licensed to provide a noncommercial 
broadcast service, not to serve as a fund-raising operation for other 
entities by broadcasting material that is `akin to regular 
advertising.' ''
    3. The Commission has granted waivers of Sec. Sec.  73.503(d) and 
73.621(e) in extraordinary circumstances. For example, in 1992, the 
former Mass Media Bureau granted a waiver of Sec. Sec.  73.503(d) and 
73.621(e) to the licensee of an NCE radio station and an NCE television 
station in West Palm Beach, Florida, following Hurricane Andrew. The 
stations proposed to broadcast a two-hour simulcast along with four 
area commercial television stations to raise funds and donations and 
provide information for the hurricane relief effort. The staff granted 
the waiver in recognition of the catastrophic events that had occurred, 
the stations' unique ability to serve the area affected by the 
disaster, and the limited length of the program. The Commission also 
has granted waivers to permit fundraising for other singular 
catastrophic events, such as Hurricanes Katrina and Sandy, the 
September 11, 2001 terrorist attacks, the January 2005 tsunami in 
Southeast Asia, and the January 2010 earthquake in Haiti. More 
recently, the Commission established informal procedures through which 
NCE licensees could request Commission approval to conduct fundraising 
to aid the Moore, Oklahoma area tornado relief efforts, noting that it 
has granted waivers of Sec.  73.503(d) for ``fundraising appeals to 
support relief efforts following disasters of particular uniqueness or 
magnitude'' and that such waivers ``have been issued for a specific 
fundraising program or programs, or for sustained station appeals for 
periods which generally do not exceed several days.'' In contrast, 
Commission staff has denied waiver requests where the proposed 
fundraising occurred annually to address ongoing needs and was not 
limited to a specific one-time problem.
    4. In June 2011, a working group including Commission staff, 
scholars, and consultants released the INC Report, a comprehensive 
report on the state of the media landscape. The INC Report discussed 
both the need to empower citizens to ensure that broadcasters serve 
their communities in exchange for the use of public spectrum and the 
need to remove unnecessary burdens on broadcasters who aim to serve 
their communities. Citing comments from the National Religious 
Broadcasters (NRB), the INC Report recommended that the Commission 
consider affording noncommercial broadcasters more flexibility by 
allowing NCE stations that are not grantees of the Corporation for 
Public Broadcasting (CPB) to spend up to one percent of their annual 
airtime doing fundraising for charities and other third-party non-
profit organizations. In order to be eligible for CPB funding, an NCE 
station would have to devote the substantial majority of its daily 
total programming hours broadcast on all of its channels to CPB-
qualified programming, which is defined as ``general audience 
programming that serves demonstrated community needs of an educational, 
informational and

[[Page 21129]]

cultural nature.'' The INC Report noted that ``[i]n some cases having 
local charities on the air can be a useful way of informing residents 
about problems in their communities'' and ``can help [NCE] stations 
achieve their public service or religious missions.''
    5. On April 25, 2012, in response to the recommendations in the INC 
Report, the Commission adopted a Notice of Proposed Rulemaking seeking 
comment on whether to allow NCE stations to conduct third-party 
fundraising. The Commission received 23 comments and seven replies. NRB 
and all of the religious broadcasters that filed comments favor 
allowing NCE stations to conduct third-party fundraising. Commenters 
representing secular NCE broadcasters, including National Public Radio 
(NPR), Public Broadcasting Service and Association for Public 
Television Stations (PBS/APTS), and university and college NCE 
stations, oppose relaxation of the third-party fundraising 
restrictions.

III. Discussion

A. Relaxation of Third-Party Fundraising Restrictions

    6. We relax the third-party fundraising restrictions to allow NCE 
stations to conduct limited on-air fundraising activities that 
interrupt regular programming for the benefit of third-party non-profit 
organizations. Such relief will provide NCE stations greater 
flexibility to undertake fundraising for third-party non-profit 
organizations. Under the current rules, program-length fundraising for 
third-party non-profit organizations is prohibited (even if regularly 
scheduled) because such programming is considered to suspend ``regular 
programming.'' Under the rules we adopt today, NCE stations will be 
able to conduct fundraising activities that alter or suspend regular 
programming--including program-length fundraising activities--at their 
discretion, as long as the fundraising programs do not exceed the one-
percent cap discussed below. We conclude that providing NCE stations 
the flexibility to engage in limited fundraising for charities and 
other third-party non-profit organizations will benefit the public 
interest. Third-party fundraising programs may enhance the educational 
nature of NCE stations by educating the public about the social needs 
and charitable causes supported by non-profit organizations. For 
example, a fundraising program for a breast cancer charity could help 
to educate the station's audience about early detection and support 
services, and a fundraising program for a child poverty relief 
organization could serve to educate the stations' listeners about the 
needs of children around the world who suffer in extreme poverty. Non-
profit organizations may be better able to address their charitable 
missions with the financial support received from the NCE stations' 
audiences. Some of this financial support may directly benefit NCE 
stations' local communities. Third-party fundraising may also help to 
lessen the financial burden on governmental entities that address 
social needs through appropriations from public funds.
    7. We further conclude that allowing NCE stations to conduct 
limited third-party fundraising will not undermine the noncommercial 
broadcasting service, as suggested by some commenters. The longstanding 
third-party fundraising restrictions reflect concerns that any 
promotional or fundraising activities by NCE stations must not 
adversely affect the educational programming mission or noncommercial 
character of these stations. Nevertheless, we conclude that a blanket 
prohibition on third-party fundraising that interrupts regular 
programming is no longer necessary to preserve NCE stations' 
noncommercial nature and ensure that NCE stations remain focused on 
their primary function of providing educational programming to their 
communities of license. The Commission's experience in granting waivers 
to allow NCE stations to conduct fundraising for disaster relief 
efforts has demonstrated that NCE stations can conduct limited third-
party fundraising without compromising their noncommercial nature and 
the valuable program service they provide to the public. The public has 
responded enthusiastically to these disaster relief fundraising 
activities, and there is no evidence in the record before us that these 
fundraising activities have altered the public's perception of 
noncommercial broadcasting. Accordingly, we find that it is appropriate 
to allow NCE stations to conduct third-party fundraising on a limited 
basis.
    8. We disagree with assertions that the success of the existing 
waiver process demonstrates that changes to the rules are unnecessary. 
As discussed above, we have determined that the public interest will be 
served by relaxing our third-party fundraising restrictions to allow 
NCE stations to conduct limited third-party fundraising activities 
unrelated to relief efforts for singular catastrophic events. The 
waiver process is intended to provide relief in extraordinary 
circumstances, and is not suitable for the more routine third-party 
fundraising activities that we address in this proceeding. We likewise 
reject proposals that we expand the existing waiver process to allow 
NCE stations to seek waivers to conduct third-party fundraising 
activities that are not connected to specific disasters. We think that 
it would impose an unnecessary burden on both NCE licensees and 
Commission staff to require NCE licensees to seek waivers each time 
they want to conduct such routine third-party fundraising.
    9. We are also not persuaded by arguments that relaxing the third-
party fundraising restrictions will adversely affect the noncommercial 
broadcasting service by reducing the amount of airtime dedicated to 
educational, instructional, and cultural programming; lessening the 
appeal of NCE stations to their audiences; or jeopardizing fundraising 
for NCE stations' own operations. First and foremost, we emphasize that 
the choice to conduct third-party fundraising will be entirely 
voluntary on the part of NCE stations. NCE stations that do not wish to 
engage in third-party fundraising are not required to do so. Thus, NCE 
stations concerned that airing third-party fundraising programs will 
jeopardize fundraising for their own operations can simply choose not 
to engage in such third-party fundraising. Additionally, we have 
determined that third-party fundraising programs may enhance the 
educational nature of NCE stations in some situations by raising public 
awareness about social needs and charitable causes supported by non-
profit organizations. Further, as we explain below, we are limiting the 
amount of time that NCE stations can spend on third-party fundraising 
that interrupts regular programming to one percent of their total 
annual airtime. We believe that the one-percent annual limit strikes 
the proper balance between providing NCE stations some flexibility to 
support their fundraising missions and ensuring that their third-party 
fundraising activities do not take away from their primary function of 
providing noncommercial, educational programming to their local 
communities.
    10. We disagree with assertions that third-party fundraising will 
change the public's perception of noncommercial broadcasting by causing 
the public to view the ``business'' of NCE stations as charitable 
fundraising, which could harm all NCE stations, even those that do not 
change their on-air practices. NCE stations that choose to engage in 
third-party fundraising will continue to spend the vast majority of 
their time--

[[Page 21130]]

at least 99%, if not more--providing noncommercial, educational 
programming to their audiences. We do not believe that allowing NCE 
stations to allot up to one percent of their total annual airtime to 
third-party fundraising will significantly alter the public's 
perception of noncommercial broadcasting. Nor do we believe that third-
party fundraising will weaken the public's confidence in the editorial 
independence of NCE stations or increase the potential for third-party 
organizations to influence programming decisions. As NRB points out, 
NCE stations are already permitted to air sponsorship and underwriting 
announcements from both non-profit groups and commercial businesses. 
Commenters have offered no evidence that such promotional announcements 
have eroded the public's confidence in the editorial independence of 
NCE stations.
    11. Some commenters assert that relaxation of the third-party 
fundraising restrictions will subject NCE stations to undue pressure 
from affiliated or influential parties--such as universities, colleges, 
and other institutions that hold the stations' licenses, politically 
powerful persons, and foundations that provide underwriting 
contributions to stations--that may seek to use the station to raise 
funds for their own discrete interests, or cause NCE stations to be 
inundated with fundraising requests from local non-profits. To the 
extent that these commenters raise concerns that a university, college, 
or other institutional licensee may apply pressure to its licensed 
station to engage in third-party fundraising, we note that NCE stations 
can take steps to preempt unwanted fundraising requests from licensees 
and other non-profit organizations by, for example, announcing publicly 
their reasons for not airing routine third-party fundraising drives.
    12. Exemption From Third-Party Fundraising Rule for CPB-Funded NCE 
Stations. Although we conclude that the public interest will be served 
by providing NCE stations the flexibility to conduct third-party 
fundraising, we recognize that some NCE stations claim that this new 
fundraising latitude may pose challenges for those stations that have 
no interest in participating in third-party fundraising. The record 
reflects that most NCE stations that oppose third-party fundraising are 
CPB-funded stations. Indeed, all but one CPB-funded station that filed 
comments opposed relaxation of the rule. Accordingly, because CPB-
funded stations generally do not want this added flexibility, we are 
exempting all CPB-funded NCE stations from the new rule authorizing NCE 
stations to conduct on-air fundraising for third-party non-profit 
organizations that interrupts regular programming.

B. Limitations on Eligible Beneficiaries of Third-Party Fundraising

    13. We limit the class of entities for which NCE stations may 
conduct third-party fundraising to entities that are recognized as tax 
exempt, non-profit organizations under Section 501(c)(3) of the 
Internal Revenue Code, 26 U.S.C. 501(c)(3). Section 501(c)(3) exempts 
from federal income taxes corporations, foundations, or other 
organizations that are organized and operated exclusively for 
religious, charitable, scientific, educational, or certain other 
purposes, where no part of the net earnings of the organization inures 
to the benefit of any private shareholder or individual. NRB and other 
commenters overwhelmingly support limiting eligibility for third-party 
fundraising to Section 501(c)(3) organizations. We agree with 
commenters that this limitation will provide NCE stations certainty 
that third-party organizations that benefit from on-air fundraising are 
bona fide non-profits.
    14. Two commenters suggest that NCE stations should be allowed to 
undertake fundraising for any organization that has qualified as a bona 
fide non-profit organization in any State or pursuant to any section of 
the Internal Revenue Code relating to non-profit organizations. These 
commenters assert that not all bona fide non-profit organizations 
choose to apply to be certified as tax exempt under the Internal 
Revenue Code and that there are many bona fide non-profit, tax exempt 
organizations, such as veterans organizations and civic leagues, that 
are not qualified under Section 501(c)(3), but are covered under other 
sections of the Internal Revenue Code. We acknowledge that there are 
many bona fide non-profit organizations that are not qualified as tax 
exempt, non-profit organizations under Section 501(c)(3). Nevertheless, 
we conclude that it is appropriate to limit eligibility for third-party 
fundraising under our rules to Section 501(c)(3) organizations. We 
think it would be unworkable to have the laws of 50 different States 
governing the types of non-profit organizations that may be the 
beneficiaries of third-party fundraising.
    15. Moreover, unlike non-profit organizations certified under other 
sections of the Internal Revenue Code, Section 501(c)(3) organizations 
are strictly prohibited from supporting or opposing candidates for 
political office and are subject to limits on lobbying. Thus, limiting 
eligible beneficiaries to Section 501(c)(3) organizations dovetails 
well with Section 399B's prohibition on paid political advertising on 
NCE stations. This prohibition reflects Congress's concern that paid 
political advertising could alter the unique noncommercial, educational 
nature of public broadcasting. We are similarly concerned that allowing 
NCE stations to raise funds for non-profit organizations that support 
or oppose political candidates or spend a substantial part of their 
time engaged in lobbying activities could alter the noncommercial, 
educational nature of NCE stations. We are also concerned that an NCE 
station's audience may perceive the station's efforts to raise funds 
for such an organization as a tacit endorsement of that organization's 
views, which could alter the public's perception of noncommercial 
broadcasting. Therefore, we conclude that it is appropriate to limit 
the eligible beneficiaries of third-party fundraising to Section 
501(c)(3) organizations.
    16. We will not limit eligible beneficiaries of third-party 
fundraising to local non-profit organizations. The Commission sought 
comment in the NPRM on whether it would further localism to limit NCE 
stations to soliciting donations for local non-profit organizations. 
After reviewing the comments, however, we are not convinced that 
localism would benefit significantly from such a limitation. Several 
commenters point out that there are many national non-profit 
organizations (some of which have local chapters and some of which do 
not) that provide critical support to local communities. Educational 
Media Foundation (EMF) notes, in this regard, that a disaster that 
directly impacts the audience of an NCE station may be best addressed 
by a national organization that does not have a local chapter in the 
community of license. Further, we agree with commenters that it may be 
difficult to distinguish between ``local'' and ``non-local'' 
organizations where, for example, a non-profit organization has local, 
national, and international components. Additionally, commenters 
observe that limiting eligible beneficiaries to local non-profit 
organizations may ignore the preferences of NCE station audiences. 
Northwestern College states that it conducted a survey of its listener 
advisory panels in five of its markets to solicit feedback on how the 
panel members feel about providing financial aid to less fortunate 
individuals facing difficult circumstances both at home

[[Page 21131]]

and abroad. Over 65% of the 1,200 respondents indicated that they want 
to be informed about the needs of poor people regardless of where they 
live, over 44% indicated that they are willing to respond financially 
to help worthy causes both in the United States and internationally, 
and 26% indicated that awareness of problems in other countries makes 
them more likely to help those in their own communities. Accordingly, 
we will afford NCE stations the discretion to raise funds for both 
local and non-local non-profit organizations. While we are not limiting 
the beneficiaries of third-party fundraising to local non-profit 
groups, we note that many NCE stations already have relationships with 
non-profit groups in their local communities and we expect that NCE 
stations may be highly motivated to support local non-profits.
    17. We also decline to limit eligible beneficiaries of an NCE 
station's third-party fundraising to non-profit organizations that are 
unaffiliated with the station. The NPRM asked for comment on whether to 
limit fundraising on behalf of third parties to unaffiliated third 
parties, given that third-party fundraising on behalf of affiliated 
entities may restrict an NCE station's ability to conduct fundraising 
for local non-profit organizations. As discussed above, we have 
determined that it will not significantly further localism to limit NCE 
stations to fundraising for local non-profit organizations. Thus, we 
think it is unnecessary to limit third-party fundraising to 
unaffiliated entities to ensure that NCE stations are able to fundraise 
for local non-profit groups.

C. Annual Limit on Third-Party Fundraising

    18. We will allow NCE broadcasters to spend up to one percent of 
their total annual airtime conducting third-party fundraising. NRB 
asserts that a one-percent annual limit provides adequate flexibility 
to NCE stations, explaining that NCE licensees ``will be reluctant to 
frustrate their audiences with excessive or demanding appeals for 
third-party non-profits, particularly when their own stations rely on 
donations from their [audiences] in order to operate.'' We agree with 
NRB and other commenters that a one-percent annual limit will strike an 
appropriate balance between allowing NCE stations the flexibility to 
support the fundraising efforts of third-party non-profit organizations 
and ensuring that third-party fundraising does not undermine the 
noncommercial nature of the participating stations and divert them from 
their primary function of providing educational programming to their 
communities of license. A one-percent annual limit--which equates to 
approximately 88 hours annually or 1.7 hours weekly for stations on the 
air 24 hours a day--will afford NCE stations flexibility to conduct 
third-party fundraising, while also ensuring that NCE stations do not 
frustrate their audiences with excessive fundraising appeals or divert 
stations from primary mission of providing educational programming to 
their communities. We reject proposals that we adopt a ten-percent 
annual limit on third-party fundraising, or leave it entirely up to NCE 
stations to decide how much of their airtime to devote to third-party 
fundraising. We share NPR's concern that a ten-percent annual limit 
would represent a significant portion of a station's annual program 
schedule and could further erode the distinction between NCE stations 
and their commercial counterparts.
    19. We recognize that an NCE station's total annual airtime may 
vary slightly from year to year and that it may be difficult for some 
stations to determine in advance precisely how many hours they will 
operate in a given year. Therefore, as suggested by NRB, we will allow 
NCE stations that engage in third-party fundraising to use the prior 
year's total airtime for purposes of determining how many hours 
constitute one percent of their total annual airtime. For example, an 
NCE station that wishes to devote one percent of its airtime in 2017 to 
third-party fundraising may use its total annual airtime for 2016 in 
calculating the one percent cap. Furthermore, with respect to NCE 
stations that multicast programming on two or more separate channels, 
we will apply the one-percent annual limit separately to each 
individual programming stream. Thus, an NCE station with three 
programming streams may spend up to one percent of the total annual 
airtime of each stream airing third-party fundraising programming on 
that stream. We will not, however, allow NCE stations with multiple 
programming streams to aggregate their total hours of programming from 
all of their streams and allocate their fundraising activity between 
and among streams or on a single program stream at their discretion, as 
proposed by one commenter. As discussed above, we believe that the one-
percent annual limit is important to ensuring that third-party 
fundraising activities do not undermine the noncommercial character of 
NCE stations, and including more fundraising on a particular stream 
would undermine that goal.
    20. We will retain our long-standing waiver process to permit NCE 
stations to conduct time-limited on-air fundraising for specific 
disasters and other singular catastrophic events, such as hurricanes 
and tornadoes, as suggested by commenters. Since such events occur only 
rarely, it will not burden Commission staff to retain the existing 
waiver process for such events for all NCE stations, both exempt and 
non-exempt. This will enable CPB-funded stations that are exempt from 
the new rule to conduct third-party fundraising for disaster relief 
efforts by seeking a waiver as they have done in the past. Non-exempt 
stations may use the same long-standing process if they wish to conduct 
third-party fundraising beyond their one-percent annual limit, but the 
standard will remain the same. This approach will ensure that if a 
disaster occurs after a non-exempt station reaches its one-percent 
annual limit, the station would still be able to seek a waiver to raise 
funds on-air to support these efforts.
    21. We decline to adopt any general limits on the duration of a 
specific fundraising program or on a discrete fundraising effort. We 
think it is unlikely that NCE licensees will risk alienating their 
audiences by interrupting their regular programming for an extended 
duration to conduct third-party fundraising. Thus, we find it is 
unnecessary to adopt durational limits on such fundraising programs.

D. Audience Disclosures

    22. We require NCE stations that interrupt regular programming to 
conduct third-party fundraising to air audience disclosures that 
clearly state that the fundraiser is not for the benefit of the station 
itself and identify the non-profit organization intended to benefit 
from the fundraising. Most commenters that address this issue support 
an audience disclosure requirement, acknowledging that it will decrease 
the likelihood of confusion on the part of station audiences as to 
whether the fundraising is intended to benefit the station or another 
entity and as to the identity of the entity for which the fundraising 
is being conducted. Commenters offer a range of suggestions as to the 
details and frequency of the audience disclosures. We adopt NRB's 
proposed approach and require that NCE stations make disclosures at the 
beginning and the end of the fundraising program and at least once 
during each hour of the program. We will not require NCE stations to 
use any particular language in the disclosure, but the disclosure must 
clearly state that the fundraiser is not for the benefit of

[[Page 21132]]

the station itself and specifically identify the non-profit 
organization for which the fundraising is being conducted. As NRB 
suggests, an NCE station may include more detailed information--such as 
a description of the non-profit entity and any special project or 
purpose for which the funds are being raised--on the station's Web site 
and invite the audience to access that information.
    23. One commenter opposes the audience disclosure requirement, 
arguing that it ``would seem obvious that any appeal for funds . . . 
will reveal the identity of the party soliciting the donation.'' We 
disagree. Given that NCE stations frequently conduct fundraising to 
support their own operations and programming, we believe that audience 
confusion could arise, particularly where there is an affiliation 
between an NCE station and the non-profit organization for which the 
fundraising is being conducted. Accordingly, we conclude that an 
audience disclosure requirement is warranted to ensure that the 
beneficiary of the fundraising is clearly identified and avoid the 
potential for audience confusion. We further find that this audience 
disclosure requirement will not impose a significant burden on NCE 
stations as it simply requires a statement that the fundraising is not 
for the stations and identification of the organization that will 
receive the funds.

E. Reimbursement of Expenses

    24. We allow NCE stations to accept reimbursement of expenses 
incurred in conducting third-party fundraising activities or airing 
third-party fundraising programs. Expenses for which reimbursement may 
be accepted include expenses incurred by an NCE station in producing 
third-party programming and the station's operating costs in connection 
with the broadcast of third-party fundraising programming. This is 
consistent with Section 399B(b)(1) of the Act, 47 U.S.C. 399B(b)(1), 
which allows ``public broadcast station[s] . . . to engage in the 
offering of services, facilities, or products in exchange for 
remuneration,'' except that such stations may not make their facilities 
available for the broadcast of any advertisements. We decline, however, 
to allow NCE stations to receive ``additional consideration'' in 
exchange for conducting or airing third-party fundraising programs. 
Allowing NCE stations to receive additional consideration for third-
party fundraising activities could create the perception that NCE 
stations are engaging in commercial activity and airing programming 
akin to advertising, thus undermining their noncommercial, educational 
mission. It also could mislead fundraising contributors, who might 
assume that their donations are being used exclusively to advance the 
mission of the fundraiser. Finally, as acknowledged by NRB, our rules 
permit an NCE station to broadcast programming furnished by third 
parties only ``if no other consideration than the furnishing of the 
program and the costs incidental to its production and broadcast are 
received by the licensee.'' We decline NRB's request to create a 
distinction between ``regular `programming' '' and ``special 
fundraising activities by NCE stations for a third-party non-profit 
group,'' with the latter not subject to the prohibition on receiving 
additional consideration. We find that the policy rationale for 
prohibiting additional consideration in the case of regular 
programming, i.e., that such consideration could undermine the 
noncommercial, educational character of public broadcast stations, 
applies equally to third party fundraising activities and programs.

F. Public File Requirement and Other Matters

    25. We do not require NCE stations that participate in third-party 
fundraising that interrupts regular programming to submit reports to 
the Commission detailing their fundraising activities, but will instead 
require such stations to include appropriate information on their 
fundraising activities in their public inspection files. Specifically, 
we require NCE stations that conduct third-party fundraising to place 
in their public files, on a quarterly basis, the following information 
for each third-party fundraising program or activity: The date, time, 
and duration of the fundraiser; the type of fundraising activity; the 
name of the non-profit organization benefitted by the fundraiser; a 
brief description of the specific cause or project, if any, supported 
by the fundraiser; and, to the extent that the NCE station participated 
in tallying or receiving any funds for the non-profit group, an 
approximation of the total funds raised. NCE stations that do not 
conduct any third-party fundraising in a given quarter will not be 
required to include any fundraising information in their public file 
for that quarter. A number of commenters raised concerns that a 
reporting requirement would impose unnecessary burdens on NCE 
licensees. NRB and other commenters support a public file requirement. 
We conclude that the more modest approach we adopt here will provide 
transparency regarding NCE stations' third-party fundraising activities 
to the stations' audiences, while minimizing any burdens on NCE 
stations. We also conclude that it is unnecessary to require NCE 
licensees to certify compliance with the annual limit and other 
restrictions on third-party fundraising in their license renewal 
applications.
    26. Additionally, we do not require NCE stations to locally produce 
all third-party fundraising programs and conduct all third-party 
fundraising activities themselves, including collecting and 
distributing the funds to the non-profit entity. We agree with 
commenters who argue that requiring NCE stations to locally produce 
third-party fundraising programs may be unnecessarily burdensome and 
inefficient. Further, we are not convinced that requiring local 
production of third-party fundraising activities is necessary to 
promote localism. As EMF points out, fundraising is not inherently 
local, but instead can have a regional, national, or worldwide message 
and still serve the needs of local communities. We also note that NCE 
stations are permitted under the Commission's rules to air programming 
that is not locally produced. Indeed, the Commission has consistently 
found that non-locally produced programming can serve the needs of a 
community. Moreover, we are unpersuaded by NPR's argument that allowing 
outside entities to independently produce fundraising appeals and 
handle the collection of funds could ``fuel the perception that the 
station lacks editorial independence and that its airtime is being 
leased to the highest bidder.'' As noted above, NCE stations are 
already permitted to air non-locally produced programming, and NPR does 
not suggest that the broadcast of such programming has created a 
perception that NCE stations lack editorial independence. We do not 
believe that allowing NCE stations to use up to one percent of their 
total annual airtime for non-locally produced third-party fundraising 
will cause the public to lose confidence in the stations' editorial 
independence.
    27. Finally, we will not require NCE stations that want to 
participate in third-party fundraising to affirmatively ``opt in'' by 
filing a letter or notification with the Commission. We conclude that 
there would be little benefit to non-profit organizations from opt-in 
notifications, as such organizations are more likely to seek out 
fundraising partners based on existing relationships with NCE stations 
than by perusing notifications filed with the Commission.

[[Page 21133]]

IV. Procedural Matters

A. Final Regulatory Flexibility Act Analysis

    28. As required by the Regulatory Flexibility Act of 1980, as 
amended (RFA), the Initial Regulatory Flexibility Analysis (IRFA) was 
incorporated into the Notice of Proposed Rulemaking (NPRM) released in 
April 2012 in this proceeding. The Federal Communications Commission 
(Commission) sought written public comment on the proposals in the 
NPRM, including comment on the IRFA. The Commission received no 
comments on the IRFA. This Final Regulatory Flexibility Analysis (FRFA) 
conforms to the RFA.

B. Need for, and Objectives of, the Report and Order

    29. Pursuant to Sec. Sec.  73.503(d) and 73.621(e) of the 
Commission's rules, a noncommercial educational (NCE) broadcast station 
may not conduct fundraising activities that substantially alter or 
suspend regular programming and are designed to benefit any entity 
other than the station itself. ``Regular programming'' includes 
programming that ``the public broadcaster ordinarily carries, but does 
not encompass those fundraising activities that suspend or alter their 
normal programming fare.'' The third-party fundraising restrictions 
reflect the concern that ``educational stations are licensed to provide 
a noncommercial broadcast service, not to serve as a fund-raising 
operation for other entities by broadcasting material that is `akin to 
regular advertising.' '' The NPRM sought comment on whether and under 
what circumstances to NCE stations should be allowed to conduct on-air 
fundraising activities that interrupt regular programming for the 
benefit of charities and other third-party non-profit organizations.
    30. The Report and Order revises the rules to allow NCE stations to 
conduct limited on-air fundraising activities that interrupt regular 
programming for the benefit of third-party non-profit organizations. 
The Report and Order finds that relaxing the longstanding third-party 
fundraising restrictions will serve the public interest by enabling NCE 
stations to partner with charities and other non-profit organizations 
to raise funds for worthy causes. Third-party fundraising programs will 
also help to raise public awareness about important topics, such as 
poverty, health care, and humanitarian issues. The Report and Order 
concludes that permitting NCE stations to conduct limited third-party 
fundraising will not undermine the noncommercial nature of NCE stations 
or their primary function of serving their communities of license 
through educational programming.
    31. The rules adopted in the Report and Order are intended to 
provide NCE stations the flexibility to conduct limited third-party 
fundraising, while minimizing any impact on the noncommercial 
broadcasting service. Specifically, these rules:
     Authorize NCE stations to conduct third-party fundraising 
that interrupts regular programming;
     Include an exemption from the rule authorizing NCE 
stations to conduct third-party fundraising which provides that no NCE 
station that receives funding from the Corporation for Public 
Broadcasting (CPB) shall have the authority to conduct third-party 
fundraising;
     Limit the non-profit organizations that are eligible 
beneficiaries of third-party fundraising to entities that are 
recognized as tax exempt, non-profit organizations under Section 
501(c)(3) of the Internal Revenue Code;
     Authorize NCE stations to spend up to one percent of their 
total annual airtime conducting third-party fundraising;
     Require NCE stations that conduct third-party fundraising 
to air audience disclosures, at the beginning and ending of the 
fundraising programming and at least once during each hour of the 
program, that clearly state that the fundraiser is not for the benefit 
of the station itself and specifically identify the non-profit 
organization that is the intended beneficiary of the fundraising;
     Authorize NCE stations to accept reimbursement of expenses 
incurred in conducting third-party fundraising activities or airing 
third-party fundraising programs, but prohibit NCE stations from 
receiving ``additional consideration'' in exchange for conducting or 
airing third-party fundraising programs; and
     Require NCE stations that conduct third-party fundraising 
to include certain information relating to their fundraising activities 
in their public files.
Summary of Significant Issues Raised in Response to the IRFA
    32. No comments were filed in response to the IRFA. One commenter 
raised concerns that the reporting requirements proposed in the NPRM 
could impose unnecessary burdens on small NCE licensees.
Response to Comments by the Chief Counsel for Advocacy of the Small 
Business Administration
    33. Pursuant to the Small Business Jobs Act of 2010, the Commission 
is required to respond to any comments filed by the Chief Counsel for 
Advocacy of the Small Business Administration (SBA), and to provide a 
detailed statement of any change made to the proposed rules as a result 
of those comments. The Chief Counsel did not file any comments in 
response to the proposed rules in this proceeding.
Description and Estimate of the Number of Small Entities To Which the 
Rules Will Apply
    34. 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 herein. 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 provide a description of such small entities, as well as 
an estimate of the number of such small entities, where feasible.
    35. Television Broadcasting. This Economic Census category 
``comprises establishments primarily engaged in broadcasting images 
together with sound.'' These establishments operate television 
broadcast studios and facilities for the programming and transmission 
of programs to the public. These establishments also produce or 
transmit visual programming to affiliated broadcast television 
stations, which in turn broadcast the programs to the public on a 
predetermined schedule. Programming may originate in their own studio, 
from an affiliated network, or from external sources. The SBA has 
created the following small business size standard for such businesses: 
Those having $38.5 million or less in annual receipts. The 2012 
Economic Census reports that 751 firms in this category operated in 
that year. Of that number, 656 had annual receipts of $25,000,000 or 
less, 25 had annual receipts between $25,000,000 and $49,999,999 and 70 
had annual receipts of $50,000,000 or more. Based on this data, we 
therefore estimate that the majority of television

[[Page 21134]]

broadcasters are small entities under the applicable SBA size standard.
    36. The Commission has estimated the number of licensed commercial 
television stations to be 1,384. Of this total, 1,264 stations (or 
about 91 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 February 24, 2017, and therefore these 
licensees qualify as small entities under the SBA definition. In 
addition, the Commission has estimated the number of licensed NCE 
television stations to be 394. Notwithstanding, the Commission does not 
compile and otherwise does not have access to information on the 
revenue of NCE stations that would permit it to determine how many such 
stations would qualify as small entities.
    37. 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, 
another element of the definition of ``small business'' requires that 
an 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 broadcast 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.
    38. Radio Stations. This Economic Census category ``comprises 
establishments primarily engaged in broadcasting aural programs by 
radio to the public. Programming may originate in their own studio, 
from an affiliated network, or from external sources.'' The SBA has 
established a small business size standard for this category as firms 
having $38.5 million or less in annual receipts. Economic Census data 
for 2012 shows that 2,849 radio station firms operated during that 
year. Of that number, 2,806 operated with annual receipts of less than 
$25 million per year, 17 with annual receipts between $25 million and 
$49,999,999 million and 26 with annual receipts of $50 million or more. 
Therefore, based on the SBA's size standard the majority of such 
entities are small entities.
    39. According to Commission staff review of the BIA Publications, 
Inc. Master Access Radio Analyzer Database as of June 2, 2016, about 
11,386 (or about 99.9 percent) of 11,395 commercial radio stations had 
revenues of $38.5 million or less and thus qualify as small entities 
under the SBA definition. The Commission has estimated the number of 
licensed commercial radio stations to be 11,415. We note that the 
Commission has also estimated the number of licensed NCE radio stations 
to be 4,101. Nevertheless, the Commission does not compile and 
otherwise does not have access to information on the revenue of NCE 
stations that would permit it to determine how many such stations would 
qualify as small entities. We also note that in assessing whether a 
business entity qualifies as small under the above definition, business 
control affiliations must be included. The Commission's estimate 
therefore likely overstates the number of small entities that might be 
affected by its action, because the revenue figure on which it is based 
does not include or aggregate revenues from affiliated companies.
    40. In addition, to be determined a ``small business,'' an entity 
may not be dominant in its field of operation. We further note, that it 
is difficult at times to assess these criteria in the context of media 
entities, and the estimate of small businesses to which these rules may 
apply does not exclude any radio station from the definition of a small 
business on these bases, thus our estimate of small businesses may 
therefore be over-inclusive.
    41. Small Entities, Small Organizations, Small Governmental 
Jurisdictions. Our proposed actions, over time, may affect small 
entities that are not easily categorized at present. We therefore 
describe here, at the outset, three comprehensive small entity size 
standards that could be directly affected herein. As of 2014, according 
to the SBA, there were 28.2 million small businesses in the U.S., which 
represented 99.7% of all businesses in the United States. Additionally, 
a ``small organization'' is generally ``any not-for-profit enterprise 
which is independently owned and operated and is not dominant in its 
field.'' Nationwide, as of 2007, there were approximately 1,621,215 
small organizations. Finally, the term ``small governmental 
jurisdiction'' is defined generally as ``governments of cities, towns, 
townships, villages, school districts, or special districts, with a 
population of less than fifty thousand.'' Census Bureau data for 2012 
indicate that there were 89,476 local governmental jurisdictions in the 
United States. We estimate that, of this total, as many as 88,761 
entities may qualify as ``small governmental jurisdictions.'' Thus, we 
estimate that most governmental jurisdictions are small.

C. Description of Projected Reporting, Recordkeeping, and Other 
Compliance Requirements for Small Entities

    42. The Report and Order requires NCE stations that choose to 
conduct third-party fundraising to include certain information 
concerning their fundraising activities in the public files. 
Specifically, NCE stations that conduct third-party fundraising must 
place in their public files, on a quarterly basis, the following 
information for each third-party fundraising program or activity: the 
date, time, and duration of the fundraiser; the type of fundraising 
activity; the name of the non-profit organization benefitted by the 
fundraiser; a brief description of the specific cause or project, if 
any, supported by the fundraiser; and, to the extent that the NCE 
station participated in tallying or receiving any funds for the non-
profit group, an approximation of the total funds raised.

D. Steps Taken To Minimize Significant Economic Impact on Small 
Entities and Significant Alternatives Considered

    43. 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 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 
small entities.''
    44. The NPRM in this proceeding sought comment on whether to 
require NCE stations that conduct third-party fundraising to file 
annual reports on their fundraising activities and to require NCE 
stations to place these reports in their public files. In order to 
address the concerns that reporting would place unnecessary burdens on 
small NCE licensees and to minimize burdens on NCE stations, the Report 
and Order declines to adopt the reporting requirement and instead 
simply requires NCE stations that conduct third-party fundraising to 
place certain information concerning their fundraising activities in 
their public files on a quarterly basis and only if there was fund-
raising activity for that

[[Page 21135]]

quarter. Additionally, the Report and Order adopts an exemption from 
the rule authorizing NCE stations to conduct third-party fundraising 
which provides that no NCE station that receives CPB funding shall have 
the authority to conduct third-party fundraising. This exemption is 
intended to ease the potential burdens that the revised rules may place 
on CPB-funded NCE stations, the majority of which are opposed to 
revision of the rules to allow third-party fundraising.

E. Report to Congress

    45. The Commission will send a copy of the Report and Order, 
including this FRFA, in a report to be sent to Congress pursuant to the 
Congressional Review Act. In addition, the Commission will send a copy 
of the Report and Order, including this FRFA, to the Chief Counsel for 
Advocacy of the SBA. The Report and Order and FRFA (or summaries 
thereof) will also be published in the Federal Register.

F. Paperwork Reduction Act of 1995 Analysis

    46. This Report and Order contains either new or modified 
information collection requirements subject to the Paperwork Reduction 
Act of 1995 (PRA). It will be submitted to the OMB for review under 
Section 3507(d) of the PRA. The OMB, the general public, and other 
federal agencies are invited to comment on the new or modified 
information collection requirements contained in this proceeding.

G. Additional Information

    47. For additional information on this proceeding, contact Kathy 
Berthot, [email protected], of the Media Bureau, Policy Division, 
(202) 418-2120.

V. Ordering Clauses

    48. Accordingly, it is ordered, pursuant to the authority contained 
in Sections 1, 4(i), 303(r), and 399B of the Communications Act of 
1934, as amended, 47 U.S.C. 151, 154(i), 303(r), and 399B, that this 
Report and Order is adopted. The requirements of this Report and Order 
shall become effective July 5, 2017, except for Sec. Sec.  
73.503(e)(1), 73.621(f)(1), and 73.2527(e)(14), which contain new or 
modified information collection requirements that require approval by 
the OMB under the Paperwork Reduction Act and will become effective 
after the Commission publishes a document in the Federal Register 
announcing such approval and the relevant effective date.
    49. It is further ordered that the Commission's Consumer and 
Governmental Affairs Bureau, Reference Information Center, shall send a 
copy of this Report and Order including the Regulatory Flexibility 
Analysis, to the Chief Counsel for Advocacy of the Small Business 
Administration.

List of Subjects in 47 CFR Part 73

    Radio, Reporting and recordkeeping requirements, Television.


Federal Communications Commission.
Marlene H. Dortch,
Secretary.

Final Rules

    For the reasons discussed in the preamble, the Federal 
Communications Commission amends 47 CFR part 73 as follows:

PART 73--RADIO BROADCAST SERVICES

0
1. The authority citation for part 73 continues to read as follows:

    Authority: 47 U.S.C. 154, 303, 334, 336, and 339.

0
2. Section 73.503 is amended by revising the last sentence of paragraph 
(d), redesignating paragraph (e) as (f), adding new paragraph (e), and 
revising the Note to Sec.  73.503 to read as follows:


Sec.  73.503  Licensing requirements and service.

* * * * *
    (d) * * * The scheduling of any announcements and acknowledgements 
may not interrupt regular programming, except as permitted under 
paragraph (e) of this section.
    (e) A noncommercial educational FM broadcast station may interrupt 
regular programming to conduct fundraising activities on behalf of a 
third-party non-profit organization, provided that all such fundraising 
activities conducted during any given year do not exceed one percent of 
the station's total annual airtime. A station may use the prior year's 
total airtime for purposes of determining how many hours constitute one 
percent of its total annual airtime. With respect to stations that 
multicast programming on two or more separate channels, the one-percent 
annual limit will apply separately to each individual programming 
stream. For purposes of this paragraph, a non-profit organization is an 
entity that qualifies as a non-profit organization under 26 U.S.C. 
501(c)(3).
    (1) Audience disclosure. A noncommercial educational FM broadcast 
station that interrupts regular programming to conduct fundraising 
activities on behalf of a third-party non-profit organization must air 
a disclosure during such activities clearly stating that the fundraiser 
is not for the benefit of the station itself and identifying the entity 
for which it is fundraising. The station must air the audience 
disclosure at the beginning and the end of each fundraising program and 
at least once during each hour in which the program is on the air.
    (2) Reimbursement. A noncommercial educational FM broadcast station 
that interrupts regular programming to conduct fundraising activities 
on behalf of a third-party non-profit organization may accept 
reimbursement of expenses incurred in conducting third-party 
fundraising activities or airing third-party fundraising programs.
    (3) Exemption. No noncommercial educational FM broadcast station 
that receives funding from the Corporation for Public Broadcasting 
shall have the authority to interrupt regular programming to conduct 
fundraising activities on behalf of a third-party non-profit 
organization.
* * * * *

    Note to Sec.  73.503:  Commission interpretation on this rule, 
including the acceptable form of acknowledgements, may be found in 
the Second Report and Order in Docket No. 21136 (Commission Policy 
Concerning the Noncommercial Nature of Educational Broadcast 
Stations), 86 FCC 2d 141 (1981); the Memorandum Opinion and Order in 
Docket No. 21136, 90 FCC 2d 895 (1982); the Memorandum Opinion and 
Order in Docket 21136, 97 FCC 2d 255 (1984); and the Report and 
Order in Docket No. 12-106 (Noncommercial Educational Station 
Fundraising for Third-Party Non-Profit Organizations), FCC 17-41, 
April 20, 2017. See also Commission Policy Concerning the 
Noncommercial Nature of Educational Broadcast Stations, Public 
Notice, 7 FCC Rcd 827 (1992), which can be retrieved through the 
Internet at http://www.fcc.gov/mmb/asd/nature.html.


0
3. Section 73.621 is amended by revising the last sentence of paragraph 
(e) introductory text and the Note to paragraph (e), redesignating 
paragraphs (f) through (i) as paragraphs (g) through (j), and adding 
new paragraph (f) to read as follows:


Sec.  73.621  Noncommercial educational TV stations.

* * * * *
    (e) * * * The scheduling of any announcements and acknowledgements 
may not interrupt regular programming, except as permitted under 
paragraph (f) of this section.

    Note to paragraph (e): Commission interpretation of this rule, 
including the acceptable form of acknowledgements, may be found in 
the Second Report and Order in Docket No. 21136 (Commission Policy 
Concerning the Noncommercial Nature of Educational Broadcast 
Stations), 86 F.C.C. 2d

[[Page 21136]]

141 (1981); the Memorandum Opinion and Order in Docket No. 21136, 90 
FCC 2d 895 (1982); the Memorandum Opinion and Order in Docket 21136, 
49 FR 13534, April 5, 1984; and the Report and Order in Docket No. 
12-106 (Noncommercial Educational Station Fundraising for Third-
Party Non-Profit Organizations), FCC 17-41, April 20, 2017.

    (f) A noncommercial educational television station may interrupt 
regular programming to conduct fundraising activities on behalf of a 
third-party non-profit organization, provided that all such fundraising 
activities conducted during any given year do not exceed one percent of 
the station's total annual airtime. A station may use the prior year's 
total airtime for purposes of determining how many hours constitute one 
percent of its total annual airtime. With respect to stations that 
multicast programming on two or more separate channels, the one-percent 
annual limit will apply separately to each individual programming 
stream. For purposes of this paragraph, a non-profit organization is an 
entity that qualifies as a non-profit organization under 26 U.S.C. 
501(c)(3).
    (1) Audience disclosure. A noncommercial educational television 
station that interrupts regular programming to conduct fundraising 
activities on behalf of a third-party non-profit organization must air 
a disclosure during such activities clearly stating that the fundraiser 
is not for the benefit of the station itself and identifying the entity 
for which it is fundraising. The station must air the audience 
disclosure at the beginning and the end of each fundraising program and 
at least once during each hour in which the program is on the air.
    (2) Reimbursement. A noncommercial educational television station 
that interrupts regular programming to conduct fundraising activities 
on behalf of a third-party non-profit organization may accept 
reimbursement of expenses incurred in conducting third-party 
fundraising activities or airing third-party fundraising programs.
    (3) Exemption. No noncommercial educational television station that 
receives funding from the Corporation for Public Broadcasting shall 
have the authority to interrupt regular programming to conduct 
fundraising activities on behalf of a third-party non-profit 
organization.
* * * * *

0
4. Section 73.3527 is amended by adding paragraph (e)(14) to read as 
follows:


Sec.  73.3527  Local public inspection file of noncommercial 
educational stations.

* * * * *
    (e) * * *
    (14) Information on Third-Party Fundraising. For noncommercial 
educational broadcast stations that interrupt regular programming to 
conduct fundraising activities on behalf of a third-party non-profit 
organization pursuant to Sec.  73.503(e) (FM stations) or Sec.  
73.621(f) (television stations), every three months, the following 
information for each third-party fundraising program or activity: The 
date, time, and duration of the fundraiser; the type of fundraising 
activity; the name of the non-profit organization benefitted by the 
fundraiser; a brief description of the specific cause or project, if 
any, supported by the fundraiser; and, to the extent that the station 
participated in tallying or receiving any funds for the non-profit 
group, an approximation of the total funds raised. The information for 
each calendar quarter is to be filed by the tenth day of the succeeding 
calendar quarter (e.g., January 10 for the quarter October-December, 
April 10 for the quarter January-March, etc.).
* * * * *
[FR Doc. 2017-09002 Filed 5-4-17; 8:45 am]
 BILLING CODE 6712-01-P