[Federal Register Volume 82, Number 125 (Friday, June 30, 2017)]
[Rules and Regulations]
[Pages 29770-29772]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-13765]


-----------------------------------------------------------------------

FEDERAL COMMUNICATIONS COMMISSION

47 CFR Part 73

[MB Docket No. 16-306, GN Docket No. 12-268; DA 17-484]


Transition Progress Report Form and Filing Requirements for 
Stations Not Eligible for Reimbursement From the TV Broadcast 
Relocation Fund

AGENCY: Federal Communications Commission.

ACTION: Final rule.

-----------------------------------------------------------------------

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 not 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.

DATES: Effective June 30, 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 17-484, MB Docket No. 16-306, GN Docket No. 12-268, 
adopted and released May 18, 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/db0518/DA-17-484A1.pdf.

Synopsis

    The Incentive Auction Task Force and Media Bureau (collectively, 
the Commission) previously determined that stations that are eligible 
for reimbursement from the TV Broadcast Relocation Fund in connection 
with their being assigned to a new channel through the Incentive 
Auction must file reports showing how the disbursed funds have been 
spent and what portion of the stations' construction in complete, and 
sought comment on whether non-reimbursable stations should also file 
reports to show what portion of the stations' construction is complete. 
These Transition Progress Reports will help the Commission, 
broadcasters, those involved in construction of broadcast facilities, 
other interested parties, and the public to monitor the construction of 
stations.
    The Commission announces that each full power and Class A 
television station that will be changing channels during the post-
incentive auction transition and is not 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 follow 
the same progress reporting requirements as reimbursable stations and 
periodically file an FCC Form 2100--Schedule 387 (Transition Progress 
Report) that is attached as Appendix A to the Public Notice DA 17-34. 
The appendix is available at https://apps.fcc.gov/edocs_public/attachmatch/DA-17-34A1.docx. Non-Reimbursable stations must file 
Transition Progress Reports using the Commission's electronic filing 
system starting with first full calendar quarter after close of the 
Incentive Auction, which occurred on April 13, 2017, and on a quarterly 
basis thereafter. In addition to these quarterly reports, Non-
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 a Transition Progress 
Report 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. 
The Commission will automatically line the Transition Progress Reports 
to non-reimbursable stations' online local public inspection file on 
the Commission's Web site.

[[Page 29771]]

    Some commenters proposed changes to questions in the Transition 
Progress Report Form adopted for reimbursable stations and certain 
filing procedures, which the Commission treated as requests for 
reconsideration and declined to adopt. The Commission declined to 
incorporate the response of ``unknown at this time'' into the form for 
each question, to change the wording of a question dealing with 
auxiliary antenna systems, to require a more detailed level of 
reporting with respect to a number of questions, to require reports to 
be filed on a less frequent basis, or to allow group owners to file a 
single report for all of their 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, has invited 
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 17-484, 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).

Appendix B: Final Regulatory Flexibility Act Analysis

    As required by the Regulatory Flexibility Act of 1980, as amended 
(``RFA''), an Initial Regulatory Flexibility Analysis (``IRFA'') was 
incorporated in the Transition Progress Report Public Notice. The 
Incentive Auction Task Force and Media Bureau sought written public 
comments on the proposals in the Transition Progress Report Public 
Notice, including comment on the IRFA. Because we adopt filing 
requirements for stations in the Public Notice, we have included this 
Final Regulatory Flexibility Analysis (``FRFA''), which conforms to the 
RFA.
    Need for, and Objectives of, the 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. In the Transition Progress Report 
Public Notice, the Media Bureau adopted a form for such progress 
reports and set the filing deadlines for such reports. The Public 
Notice requires that that reassigned television stations that are not 
eligible for reimbursement from the TV Broadcast Relocation Fund (Non-
Reimbursable Stations) provide the same progress reports to the 
Commission on the same schedule as that specified for stations eligible 
for reimbursement. The Transition Progress Report Form requires all 
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.
    Summary of Significant Issues Raised by Public Comments in Response 
to the IRFA. No formal comments were filed on the IRFA.
    Response to Comments by the Chief Counsel for Advocacy of the Small 
Business Administration. No comments were filed on the IRFA by the 
Small Business Administration.
    Description and Estimate of the Number of Small Entities to Which 
the 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 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.'' 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 commercial television broadcasters are small entities under 
the applicable SBA size standard.
    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 
noncommercial educational (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.
    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

[[Page 29772]]

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 417. Given the nature of these services, we 
will presume that these licensees qualify as small entities under the 
SBA definition.
    Description of Projected Reporting, Recordkeeping, and Other 
Compliance Requirements. The Public Notice adopted the following new 
reporting requirements. Non-Reimbursable Stations must file the 
Transition Progress Report on a quarterly basis, with the first Report 
being filed beginning for the first full quarter after the release of a 
public notice announcing the completion of the incentive auction. The 
deadline for filing the first Report is October 10, 2017. We further 
require that Non-Reimbursable Stations file Transition Progress 
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. The Transition 
Progress Reports will be filed electronically using the Commission's 
electronic filing system, and the Commission will make the filings 
viewable in stations' online public inspection files. All reassigned 
stations are assigned to one of 10 Post-Auction Transition Plan Phase 
with construction deadline requirements ranging from November 30, 2018 
to July 3, 2020. Once a station has ceased operating on its pre-auction 
channel, it no longer needs to file reports.
    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.
    The reporting requirement adopted in the Public Notice will allow 
the Commission, broadcasters (including those filing the Reports), and 
other interested parties to more closely monitor the 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. In addition, the burdens 
of the reporting requirements are minimal and we believe the benefits 
of the reporting requirements, which will facilitate the successful 
post-incentive auction transition, outweigh any burdens associated with 
compliance.
    Federal Rules that May Duplicate, Overlap, or Conflict With the 
Proposed Rule. None.
    Report to Congress. The Commission will send a copy of the Public 
Notice, including this FRFA, in a report to be sent to Congress and the 
Government Accountability Office pursuant to the Congressional Review 
Act. A copy (or summary thereof) will also be published in the Federal 
Register.
    Report to Small Business Administration. The Commission will send a 
copy of the Public Notice, including this FRFA, to the Chief Counsel 
for Advocacy of the Small Business Administration.

Federal Communications Commission.
Thomas Horan,
Chief of Staff.
[FR Doc. 2017-13765 Filed 6-29-17; 8:45 am]
BILLING CODE 6712-01-P