[Federal Register Volume 83, Number 245 (Friday, December 21, 2018)]
[Rules and Regulations]
[Pages 65551-65559]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-26595]


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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Parts 73 and 74

[MB Docket Nos. 18-4, 17-105; FCC 18-145]


Filing of Contracts

AGENCY: Federal Communications Commission.

ACTION: Final rule.

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SUMMARY: In this document, the Federal Communications Commission 
eliminates a paper filing requirement for broadcast station contracts 
and documents and instead requires that these same documents are either 
uploaded or listed in the online public file within 30 days.

DATES: Effective Date: January 22, 2019.

FOR FURTHER INFORMATION CONTACT: Christopher Clark, Industry Analysis 
Division, Media Bureau, FCC, (202) 418-2609. For additional information 
concerning the information collection requirements contained in the 
Report and Order, contact Cathy Williams at (202) 418-2918, or via the 
internet at [email protected].

SUPPLEMENTARY INFORMATION: This is a summary of the Commission's Report 
and Order, FCC 18-145, in MB Docket Nos. 18-4 and 17-105, adopted and 
released on October 23, 2018. The complete text of this document is 
available electronically via the search function on the FCC's 
Electronic Document Management System (EDOCS) web page at https://apps.fcc.gov/edocs_public/ (https://apps.fcc.gov/edocs_public/). The 
complete document is available for inspection and copying in the FCC 
Reference Information Center, 445 12th Street SW, Room CY-A257, 
Washington, DC 20554 (for hours of operation, see https://www.fcc.gov/general/fcc-reference-information-center). To request materials in 
accessible formats for people with disabilities (Braille, large print, 
electronic files, audio format), send an email to [email protected] (mail 
to: [email protected]) or call the FCC's Consumer and Governmental Affairs 
Bureau at (202) 418-0530 (voice), (202) 418-0432 (TTY).

[[Page 65552]]

Synopsis

    1. In this Report and Order (Order), we eliminate the paper filing 
requirement in Sec.  73.3613 of our rules. Sec.  73.3613 currently 
requires licensees and permittees of commercial and noncommercial AM, 
FM, television, and international broadcast stations to file paper 
copies of certain documents with the Commission within 30 days of 
execution. Broadcast licensees and permittees have been required to 
file paper copies of station documents with the Commission since the 
late 1930s. As part of our Modernization of Media Regulation 
Initiative, earlier this year we released a Notice of Proposed 
Rulemaking (NPRM) tentatively concluding that the paper filing 
requirement for Sec.  73.3613 documents had outlived its usefulness and 
should be eliminated. We adopt that tentative conclusion herein and 
eliminate the routine paper filing requirement as discussed below. Our 
action today advances our goal of eliminating outdated and unnecessary 
regulatory burdens that can impede competition and innovation in media 
markets. In addition, our action today is consistent with other steps 
the Commission has taken to reduce paper submissions and make documents 
available electronically.
    2. Elimination of Routine Paper Filings for Commercial and 
Noncommercial AM, FM, and Television Stations. Consistent with the 
NPRM's tentative conclusion, we eliminate the paper filing requirement 
for Sec.  73.3613 documents for commercial and noncommercial AM, FM, 
and television stations.\1\ Given the ready access afforded by the 
online public inspection file (OPIF), stations already provide easy 
access to such documents, making routine paper filings redundant and 
unnecessary. Commenters agree that we can eliminate the 1930s-era paper 
filing requirement and rely on the OPIF to ensure that the public has 
access to relevant documents. As currently set forth in Sec. Sec.  
73.3526 and 73.3527 of our regulations,\2\ our existing OPIF rules 
require that stations retain in the OPIF a copy of their most recent, 
complete ownership report together with all related material. And under 
our rules, ownership reports must include a list of all documents 
currently filed with the Commission pursuant to Sec.  73.3613 for the 
stations covered by the report. Our present rules require that these 
documents be made available for public inspection via the OPIF. 
Specifically, stations are currently required to either (i) upload the 
documents directly to the OPIF or (ii) maintain an up-to-date list of 
the documents in the OPIF and provide copies to requesting parties 
within seven days.\3\ Accordingly, we eliminate the routine paper 
filing requirement for such documents, and we rely on our OPIF rules as 
discussed herein. In addition, we will continue to rely on our long-
standing ability to obtain Sec.  73.3613 documents from licensees and 
permittees upon request, as needed. If the Commission requests a copy 
of a Sec.  73.3613 document, then, as is currently the case under our 
existing rules, the licensee or permittee must provide the Commission 
with a complete, unredacted copy of such document. Currently, LPTV 
stations are required to file network affiliation agreements with the 
Commission as specified in Sec.  73.3613(a). Because we are retaining 
our ability to obtain Sec.  73.3613 documents upon request, LPTV 
stations will be required to submit network affiliation agreements to 
the Commission upon request and within seven days of such request.
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    \1\ Consistent with the proposal in the NPRM, we will require 
that stations make their Sec.  73.3613 documents available to the 
Commission and the public via the options set forth in the existing 
public file rules, as discussed below.
    \2\ Sec.  73.3526 of our rules contains OPIF requirements for 
commercial broadcast stations, while Sec.  73.3527 contains OPIF 
requirements for noncommercial educational broadcast stations.
    \3\ Our public file rules also require licensees and permittees 
to retain copies of TBAs and JSAs involving a commercial AM, FM, or 
television station in the station's public file.
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    3. Consistent with the previous practice for paper filings under 
Sec.  73.3613, we will require that stations update their inventory of 
Sec.  73.3613 documents in the public file within 30 days of execution 
of such documents, including amendments, supplements, and 
cancellations. Nearly all commenters support such a requirement. While 
the public broadcasting organizations assert that requiring ``periodic 
updates'' would be sufficient for public broadcast stations, we are 
concerned that such a vague requirement would create uncertainty as to 
when these stations must update the public file to reflect changes to 
their inventory of Sec.  73.3613 documents. Accordingly, rather than 
rely on each station to define the appropriate frequency of updates, we 
require that all stations, including public broadcast stations, update 
their inventory of Sec.  73.3613 documents in the OPIF within 30 days 
of execution of such documents, including amendments, supplements, and 
cancellations.
    4. We decline to require that all Sec.  73.3613 documents, rather 
than simply a list of such documents, be uploaded directly to the OPIF. 
Since 1998, our public file rules have allowed stations the option of 
retaining either copies or a list of Sec.  73.3613 documents in the 
public file, and no commenter asserts that the option to retain a list 
in the file has deprived the public of information that is relevant to 
station ownership or assessing renewal applications. In addition, we 
note that the public has direct access to information about station 
owners via ownership reports, which are also retained in the OPIF. 
Thus, contrary to some commenters' assertions, retaining the option for 
stations to list Sec.  73.3613 documents in the public file and provide 
them upon request will not deprive the Commission and the public of 
information relevant to station ownership. As discussed below, we 
reject assertions that eliminating paper filings and allowing stations 
to provide access to Sec.  73.3613 documents via the options set forth 
in our existing OPIF rules will decrease transparency and delay access 
to such documents by the public. Under the approach we adopt herein, 
interested parties will be able to obtain Sec.  73.3613 documents 
either directly from the OPIF or within seven days of submitting a 
request to a station that lists the documents in the OPIF, without 
having to travel to the Commission's Reference Information Center (RIC) 
to request a copy of a document filed with the Commission in paper. 
Rather than delaying access to Sec.  73.3613 documents and increasing 
burdens on the Commission and the public, we believe that the OPIF 
reduces the time and expense for interested parties to obtain copies of 
Sec.  73.3613 documents. Indeed, as discussed below, today only a 
limited number of people visit the RIC to view Sec.  73.3613 documents 
filed with the Commission in paper.
    5. We agree with Gray Television that a station that lists its 
Sec.  73.3613 documents in the OPIF should be required to include the 
execution and expiration dates, if any, for each such document. No 
commenter opposes this proposal. Accordingly, we require stations that 
list Sec.  73.3613 documents in the OPIF to include on their list all 
of the information required for such documents on ownership reports. 
This will provide the information necessary to keep track of expiring 
documents and thereby help ensure that stations maintain a current 
inventory of their Sec.  73.3613 documents in the OPIF.
    6. We conclude that eliminating the paper filing requirement and 
relying on our OPIF rules as discussed herein will reduce burdens on 
broadcasters while preserving transparency and ensuring

[[Page 65553]]

that the Commission and the public can obtain relevant information in a 
timely fashion. As a result of our decision today, stations will no 
longer have to spend time and money preparing paper copies of Sec.  
73.3613 documents and having them mailed or hand-delivered to the 
Commission, often by outside legal counsel. Importantly, the Commission 
and the public will still have easy access to Sec.  73.3613 documents 
via the OPIF as discussed above. Furthermore, the Commission will 
continue to have the ability to obtain unredacted copies of such 
documents from stations upon request. Therefore, contrary to some 
commenters' assertions, we do not believe that eliminating routine 
paper filings will meaningfully impact the ability of the Commission 
and other interested parties to review Sec.  73.3613 documents for 
commercial and noncommercial AM, FM, and television stations. Because 
Sec.  73.3613 documents are either contained in the OPIF or available 
upon request to the station, there is no longer a need for the public 
to travel to the Commission's RIC to view these documents. Indeed, 
based on a review of the Commission's internal records, just over 500 
people--or an average of 2 people per business day--visited the RIC 
from September 2017 through August 2018, including Commission staff and 
people viewing other available files. The RIC files include not only 
Sec.  73.3613 documents filed with the Commission but also a lot of 
information on licensing applications, as well as Commission 
proceedings, programs, and activities. Thus, the total number of 
visitors to the RIC cannot be equated to the number of people who 
viewed the broadcast station paper files made available in the RIC, or 
more specifically, the Sec.  73.3613 documents contained in those 
files, which is unknown but could be much fewer than the total number 
of visitors to the RIC. Moreover, the total number of visitors to the 
RIC includes Commission staff, and it is unknown how many visitors were 
members of the public.
    7. To effectuate the changes we adopt today, we will revise the 
relevant public file rules by replacing the current reference to the 
documents listed on ownership reports (i.e., Sec.  73.3613 documents) 
with a direct reference to the list of documents in Sec.  73.3613. We 
agree with the National Association of Broadcasters that this approach 
will clarify the relevant public file requirements in Sec. Sec.  
73.3526(e)(5) and 73.3527(e)(4) of our rules and also avoid the need to 
attempt to incorporate the lengthy, detailed list of Sec.  73.3613 
documents into two distinct sections of our rules. Incorporating the 
list of Sec.  73.3613 documents into our public file rules would 
significantly increase the length and complexity of those rules. While 
one commenter asserts in general terms that we should eliminate Sec.  
73.3613 from our rules entirely, no commenter has proposed a specific 
method of doing so in a manner that addresses our concerns. In addition 
to significantly increasing the length and complexity of our public 
file rules, we also raised other concerns about eliminating Sec.  
73.3613 of our rules entirely. Specifically, in the NPRM we sought 
comment on how we would address the documents currently specified in 
Sec.  73.3613(e), which licensees and permittees currently are not 
required to file with the Commission but must keep at the station and 
make them available for inspection upon request by the Commission. We 
also sought comment on how we would address Sec.  73.3613(a)(1), which 
currently includes a definition of ``network'' that is cross referenced 
in the Telecommunications Act of 1996 and in our Dual Network Rule. No 
commenter has offered a proposal for addressing these issues. 
Accordingly, we conclude that retaining the list of documents in Sec.  
73.3613 and revising our public file rules to refer directly to that 
list is best for clarity and will most effectively keep stations 
informed of their obligations.
    8. The text of the revised rules can be found in Appendix A hereto. 
In addition to the specific rule changes discussed above, we are also 
eliminating Sec.  73.1226(c) of our rules, which currently requires 
that certain documents be kept at the station and made available for 
inspection by any authorized representative of the FCC upon request. 
Because Sec.  73.3613(e) currently contains a similar list of documents 
that must be kept at the station and made available for inspection upon 
request by the FCC, we conclude that we can eliminate Sec.  73.1226(c) 
and revise the relevant subsection of Sec.  73.3613 to include every 
document that is currently listed in Sec.  73.1226(c), except for 
``contracts relating to the sale of broadcast time to `time brokers' 
for resale,'' which are already required to be made available for 
inspection pursuant to our OPIF rules. In addition, we are also 
eliminating Sec.  73.3613(a)(3) of our rules, which currently requires 
that stations notify the Commission in writing when a network 
affiliation agreement is cancelled or terminated. Because we are no 
longer requiring that stations file network affiliation agreements with 
the Commission in paper routinely, it does not make sense to continue 
requiring routine written notifications whenever such an agreement is 
cancelled or terminated. Further, such written notifications are no 
longer necessary given that (i) the expiration date of the affiliation 
agreement will be available either through the copy uploaded to the 
OPIF or in the document list; and (ii) the documents in the OPIF or the 
list must be updated within 30 days of a cancellation of an agreement. 
We also reformat the notes to Sec. Sec.  73.3526 and 73.3527 to conform 
to the requirements of the Office of the Federal Register and make 
additional, conforming edits as shown in Appendix A. We direct the 
Media Bureau to make all form modifications and take any other steps 
necessary to implement all the rule changes and other decisions adopted 
herein.
    9. Streamlining Disclosure Requirements for TBAs and JSAs. In order 
to avoid overlap and duplication in our rules, we adopt the NPRM's 
tentative conclusion to eliminate the filing requirement for 
attributable time brokerage agreements (TBAs) and attributable joint 
sales agreements (JSAs) in Sec.  73.3613(d) of our rules. This 
provision duplicates an existing OPIF disclosure requirement; 
therefore, it is no longer necessary to retain Sec.  73.3613(d) 
following the elimination of the paper filing requirement. Because 
Sec.  73.3613(d) also contains important definitional information 
describing the subset of TBAs and JSAs that must be included on 
ownership reports which remain undisturbed by this item, we find it 
necessary to incorporate this definitional information elsewhere, as 
discussed below.
    10. Sec.  73.3613(d) currently defines attributable TBAs and 
attributable JSAs and requires that they be filed with the Commission 
by the brokering station. A TBA, also referred to as local marketing 
agreement (LMA), involves ``the sale by a licensee of discrete blocks 
of time to a `broker' that supplies the programming to fill that time 
and sells the commercial spot announcements in it.'' A JSA is an 
agreement that authorizes a broker to sell some or all of the 
advertising time on the brokered station. As discussed above, stations 
must also disclose these and other Sec.  73.3613 documents on ownership 
reports and make the documents available via the OPIF pursuant to Sec.  
73.3526(e)(5). However, as discussed in the NPRM, our existing OPIF 
rule for commercial stations contains another provision that 
specifically requires stations to upload

[[Page 65554]]

all TBAs and JSAs directly to the OPIF for both the brokering and 
brokered stations, regardless of whether or not such agreements are 
attributable. Thus, we do not need to retain Sec.  73.3613(d) to ensure 
that the Commission and the public have access to this subset of TBAs 
and JSAs. Accordingly, we eliminate Sec.  73.3613(d) of our rules to 
streamline our disclosure requirements for TBAs and JSAs. Consistent 
with our decision above to require updates to the OPIF within 30 days 
of executing a Sec.  73.3613 document, we will require that stations 
update the OPIF to reflect new or amended TBAs and JSAs within 30 days 
of execution of such documents, including amendments, supplements, and 
cancellations.
    11. Despite the elimination of the paper filing requirement, we 
continue to require that attributable TBAs and attributable JSAs be 
disclosed by the licensee of the brokering station on its ownership 
report. The Commission has previously determined that such agreements 
permit a degree of influence or control that is cognizable as an 
attributable ownership interest in the brokered station for purposes of 
determining the brokering licensee's compliance with our broadcast 
ownership rules. As such, the Commission included attributable TBAs and 
attributable JSAs in the list of agreements that must be disclosed on 
ownership reports. Because our decision today does not change these 
prior determinations,\4\ licensees brokering time under an attributable 
TBA or an attributable JSA must continue listing such agreements on 
ownership reports. We will make this clear in the instructions to FCC 
Form 323.
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    \4\ We also note that the NPRM did not propose to eliminate the 
requirement that these agreements be disclosed on ownership reports 
and that any such change is beyond the scope of this proceeding.
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    12. Redaction of Confidential or Proprietary Information. We adopt 
our tentative conclusion to extend the explicit redaction allowance for 
TBAs and JSAs to all Sec.  73.3613 documents to the extent they contain 
confidential or proprietary information, and require that unredacted 
copies be provided to the Commission upon request. No commenter asserts 
that we should not extend this explicit redaction allowance for 
confidential or proprietary information to all Sec.  73.3613 documents, 
although some commenters urge us to clarify what constitutes 
``confidential or proprietary information'' and the procedure for 
indicating redactions.
    13. We clarify that, for purposes of the redaction allowance, 
confidential or proprietary information is information that would be 
accorded confidential treatment pursuant to our general rules for 
seeking non-disclosure of information submitted to the Commission. 
Sec. Sec.  0.457(d) and 0.459 of our rules provide for confidential 
treatment of trade secrets and commercial or financial information 
obtained from any person and privileged or confidential. Because an 
individualized determination is required to decide whether confidential 
or proprietary information not specified in Sec.  0.457 of our rules is 
to be withheld from routine public inspection, we reject the American 
Cable Association's assertion that information related in any way to 
retransmission consent should never be redacted. However, we emphasize 
that the redaction allowance applies to Sec.  73.3613 documents only to 
the extent they contain confidential or proprietary information. Thus, 
we expect that licensees and permittees will redact only such 
information that is actually confidential or proprietary, if any, and 
leave all other information unredacted in the copy of the Sec.  73.3613 
document they make available to the Commission and the public.
    14. Moreover, we require that each copy of a Sec.  73.3613 document 
containing confidential or proprietary information have the same 
material redacted and that licensees and permittees must not provide 
different redacted versions of the same document to requesting parties. 
Licensees and permittees must clearly indicate where redactions are 
being made. If a person believes that a Sec.  73.3613 document has been 
inappropriately redacted, he or she may file a response in opposition 
under Sec.  0.459(d) of our rules if the licensee or permittee of the 
station filed a request for confidentiality pursuant to Sec.  0.459. 
Otherwise, the person may file a complaint with the Commission if he or 
she believes that the station has violated our public file rules or 
redacted information that is not actually confidential or proprietary.
    15. A station that provides a redacted version of a Sec.  73.3613 
document to a requesting party must provide the party with the redacted 
document within seven days of the party's request for a copy of the 
document. Thus, we will not permit stations that choose to retain a 
list of Sec.  73.3613 documents in the public file to wait months 
before providing a copy of those documents to a requesting party. We 
note that under our existing rules, information submitted to the 
Commission under a request for confidentiality is treated as 
confidential until the Commission acts on the request and all 
subsequent appeal and stay proceedings have been exhausted. Thus, even 
absent an explicit redaction allowance, broadcasters would still be 
able to redact information submitted to the Commission under a request 
for confidentiality, and the Commission would withhold that information 
from third parties in accordance with its existing rules. Therefore, we 
reject the notion that the explicit redaction allowance will delay 
parties' access to relevant information.
    16. Elimination of Routine Paper Filings for International 
Broadcast Stations. International broadcast stations, which are 
authorized on a seasonal basis, employ frequencies allocated to the 
broadcasting service between 5,900 and 26,100 kHz, the transmissions of 
which are intended to be received in foreign countries. These stations, 
which are often operated by churches and other religious organizations, 
do not serve local communities in the United States. We adopt our 
tentative conclusion to eliminate the requirement that licensees and 
permittees of international broadcast stations routinely file Sec.  
73.3613 documents with the Commission and retain our ability to obtain 
these documents from licensees and permittees upon request, as needed. 
No commenter opposes elimination of the Sec.  73.3613 paper filing 
requirement for international broadcast stations.
    17. We conclude that the current justifications for requiring 
disclosure of Sec.  73.3613 documents by commercial and noncommercial 
AM, FM, and television stations do not apply to international broadcast 
stations. As discussed in the NPRM, the routine disclosure of Sec.  
73.3613 documents by commercial and noncommercial AM, FM, and 
television stations supplements the information that these stations are 
required to provide in their ownership reports. However, the same is 
not true for international broadcast stations, which are not subject to 
the routine ownership reporting obligations that apply to the other 
broadcast services. Moreover, international broadcast stations are not 
subject to the ownership rules applicable to commercial AM, FM, and 
television stations, nor are they subject to the relevant operational 
provisions applicable to noncommercial FM and television stations. For 
purposes of enforcing the statutory bar against de facto transfers of 
control of international broadcast stations without prior Commission 
authorization, we believe it is sufficient to retain our ability to 
obtain Sec.  73.3613 documents from licensees and permittees of 
international broadcast stations upon request, as needed. Because the 
record provides no basis for continuing to

[[Page 65555]]

require that international broadcast stations routinely file Sec.  
73.3613 documents with the Commission, we eliminate the routine paper 
filing requirement for Sec.  73.3613 documents for international 
broadcast stations.
    18. Paperwork Reduction Act Analysis.--This document contains a 
non-substantive and non-material modification of information collection 
requirements that is subject to approval by the Office of Management 
and Budget (OMB) pursuant to the Paperwork Reduction Act of 1995, 
Public Law 104-13 (44 U.S.C. 3501-3520). In addition, we note that 
pursuant to the Small Business Paperwork Relief Act of 2002, Public Law 
107-198, 44 U.S.C. 3506(c)(4), the Commission previously sought 
specific comment on how it might further reduce the information 
collection burden for small business concerns with fewer than 25 
employees. In the present document, we have assessed the effects of our 
decision to eliminate the paper filing requirement for Sec.  73.3613 
documents and rely instead on our public file rules and our ability to 
obtain Sec.  73.3613 documents from broadcast licensees and permittees 
upon request. We find that the rule changes adopted herein will relieve 
broadcast licensees and permittees of the time and expense associated 
with filing paper copies of Sec.  73.3613 documents with the 
Commission, and that affected small entities, including those with 
fewer than 25 employees, will only benefit from the actions taken in 
this document.

Final Regulatory Flexibility Analysis

    19. As required by the Regulatory Flexibility Act of 1980, as 
amended (RFA), an Initial Regulatory Flexibility Analysis (IRFA) was 
incorporated in the Notice of Proposed Rulemaking (NPRM) in MB Docket 
18-4. The Commission sought written public comments on proposals in the 
NPRM, including comment on the IRFA. The Commission received no direct 
comments on the IRFA. The present Final Regulatory Flexibility Analysis 
(FRFA) conforms to the RFA.
    20. Need for, and Objectives of, the Report and Order. The Report 
and Order (Order) eliminates the requirement that licensees and 
permittees of commercial and noncommercial AM, FM, television, and 
international broadcast stations routinely file paper copies of station 
contracts and other documents with the Commission as currently 
specified in Sec.  73.3613 of the Commission's rules. Given that the 
Commission's existing public file rules now require that licensees and 
permittees of commercial and noncommercial AM, FM, and televisions 
stations make copies of their Sec.  73.3613 documents available online, 
the Order finds that Sec.  73.3613's requirement that licensees and 
permittees also file copies of such documents in paper with the 
Commission to be outdated and unnecessary. Rather than retaining this 
antiquated paper filing requirement, the Commission will rely on its 
existing public file rules to ensure access to Sec.  73.3613 documents 
as discussed in the Order and retain the ability to obtain these 
documents from licensees and permittees upon request, as needed. The 
Commission's existing public file rules require licensees and 
permittees to either (i) upload the documents directly to the OPIF or 
(ii) maintain an up-to-date list of the documents in the OPIF and 
provide copies to requesting parties within seven days.
    21. In addition to eliminating the paper filing requirement for 
Sec.  73.3613 documents, the Order also eliminates a redundant 
disclosure requirement pertaining to certain Sec.  73.3613 documents 
and expands an existing redaction allowance for confidential or 
proprietary information in Sec.  73.3613 documents. The Order requires 
that unredacted copies the documents be provided to the Commission upon 
request and that any confidential or proprietary information that is 
redacted must be marked consistently throughout the document.
    22. The Order arises from a Public Notice issued by the Commission 
in May 2017, launching an initiative to modernize the Commission's 
media regulations. The majority of the parties that filed comments in 
this proceeding agree that the routine paper filing requirement at 
issue is redundant and should be eliminated. The Order concludes that 
eliminating this requirement is consistent with other actions the 
Commission has taken to reduce paper submissions and advances the 
Commission's goal of eliminating outdated and unnecessary regulatory 
burdens that can impede competition and innovation in media markets.
    23. Summary of Significant Issues Raised by Public Comments in 
Response to the IRFA. No comments were filed in direct response to the 
IRFA.
    24. Response to Comments by the Chief Counsel for Advocacy of the 
Small Business Administration. Pursuant to the Small Business Jobs Act 
of 2010, which amended the RFA, the Commission is required to respond 
to any comments filed by the Chief Counsel for Advocacy of the 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 this proceeding.
    25. Description and Estimate of the Number of Small Entities to 
Which Rules Will Apply. The RFA directs agencies to provide a 
description of and, where feasible, an estimate of the number of small 
entities that will be affected by the rules 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. The final rules adopted herein affect small television and radio 
broadcast stations. A description of these small entities, as well as 
an estimate of the number of such small entities, is provided below.
    26. 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 less than 
$25,000,000, and 95 had annual receipts of $25,000,000 or more. Based 
on this data, we estimate that the majority of commercial television 
broadcasters are small entities under the applicable SBA size standard.
    27. In addition, the Commission has estimated the number of 
licensed commercial television stations to be 1,349. Of this total, 
1,277 stations 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 October 1, 2018. Such entities, therefore, 
qualify as small entities under the SBA definition. The Commission has 
estimated the number of licensed noncommercial

[[Page 65556]]

educational (NCE) television stations to be 412. The Commission, 
however, does not compile and 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.
    28. 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 the proposed rules would apply does not exclude any television 
station from the definition of a small business on this basis and 
therefore could be over-inclusive.
    29. There are also 1,911 LPTV stations and 389 Class A stations. 
Given the nature of these services, we will presume that all of these 
entities qualify as small entities under the above SBA small business 
size standard.
    30. Radio Stations. This economic Census category ``comprises 
establishments primarily engaged in broadcasting aural programs by 
radio to the public.'' The SBA has created the following small business 
size standard for this category: Those having $38.5 million or less in 
annual receipts. Census data for 2012 shows that 2,849 firms in this 
category operated in that year. Of this number, 2,806 firms had annual 
receipts of less than $25,000,000, and 43 firms had annual receipts of 
$25,000,000 or more. Therefore, based on the SBA's size standard, the 
majority of such entities are small entities.
    31. Apart from the U.S. Census, the Commission has estimated the 
number of licensed commercial AM radio stations to be 4,626 stations 
and the number of commercial FM radio stations to be 6,737, for a total 
number of 11,363. Of this total, 11,362 stations 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 October 1, 2018. In 
addition, the Commission has estimated the number of noncommercial 
educational FM radio stations to be 4,130. NCE stations are non-profit, 
and therefore considered to be small entities. Therefore, we estimate 
that the majority of radio broadcast stations are small entities.
    32. International Broadcast Stations. Neither the Commission nor 
the SBA has developed a definition of small entities specifically 
applicable to international broadcast stations. The closest applicable 
SBA size standards and U.S. Census Bureau category is Radio Stations. 
Establishments in this industry are primarily engaged in broadcasting 
aural programs by radio to the public with programming that may 
originate in their own studio, from an affiliated network, or from 
external sources. The SBA small business size standard for this 
category is firms having $38.5 million or less in annual receipts. U.S. 
Census Bureau data for 2012 shows that 2,849 radio station firms 
operated during that year. Of this number, 2,806 firms had annual 
receipts of less than $25,000,000, and 43 firms had annual receipts of 
$25,000,000 or more. Therefore, based on the SBA's size standard the 
majority of entities in this industry are small entities.
    33. According to the Commission's records there were 16 
international broadcast stations operating as of September 13, 2018. 
The Commission however does not request nor collect annual revenue 
information; therefore, the Commission is unable to estimate the number 
of international broadcast stations that would constitute a small 
business under the SBA definition.
    34. Description of Projected Reporting, Recordkeeping, and Other 
Compliance Requirements. In this section, we identify the reporting, 
recordkeeping, and other compliance requirements in the Order and 
consider whether small entities are affected disproportionately by any 
such requirements.
    35. Reporting Requirements. The Order requires licensees and 
permittees to update the Sec.  73.3613 documents in their online public 
file or the list of such documents within 30 days of executing such 
documents. This 30-day timeframe for updating the inventory of Sec.  
73.3613 documents in the public file is consistent with the previous 
rule, which required licensees and permittees to file the documents 
with the Commission in paper within 30 days of execution.
    36. Recordkeeping Requirements. The existing public file rules give 
stations the option of either (i) retaining copies of their Sec.  
73.3613 documents in the public file or (ii) maintaining an up-to-date 
list of such documents in the public file and providing copies to a 
requesting party within seven days. The Order retains these existing 
options for disclosing Sec.  73.3613 documents in the public file. To 
preserve the current level of access to Sec.  73.3613 documents, the 
Order clarifies that stations must ensure that their inventory of such 
documents in the public file is up to date, regardless of whether the 
station chooses to retain copies or a list of Sec.  73.3613 documents 
in the public file, and provide copies of their Sec.  73.3613 documents 
to the Commission and the public within seven days upon request. 
Stations that upload a list of Sec.  73.3613 documents to the public 
file must include on that list all of the information that the 
Commission requires for such documents on broadcast ownership reports, 
including a description of each document, the parties to the document, 
the month and year of execution, the month and year of expiration, and 
the document type. This will provide the information necessary for the 
public to keep track of expiring documents and help ensure that 
stations maintain a current record of their Sec.  73.3613 documents in 
the public file.
    37. Other Compliance Requirements. The Order does not adopt new 
compliance requirements.
    38. Steps Taken to Minimize Significant Economic 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 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, standards; and (4) an exemption 
from coverage of the rule, or any part thereof, for small entities.
    39. The Order eliminates the paper filing requirement for Sec.  
73.3613 documents and adopts other rule changes to streamline 
disclosure requirements and explicitly allow for the redaction of 
confidential or proprietary information in such documents. These 
actions are intended to modernize the Commission's regulations and 
reduce costs and recordkeeping burdens for affected entities, including 
small entities. Under the revised rules, affected entities no longer 
will need to expend time and resources filing paper copies of Sec.  
73.3613 documents with the Commission.
    40. For commercial and noncommercial AM, FM, and television

[[Page 65557]]

stations, the Commission will rely on its existing public file rules, 
which already require that these stations make copies of Sec.  73.3613 
documents available to the public online. The existing public file 
rules provide these stations with flexibility to select the disclosure 
method that is less burdensome with respect to Sec.  73.3613 documents, 
while still ensuring timely access to the documents by the public and 
the Commission. In the Order, the Commission declines to eliminate this 
flexibility by requiring that stations upload all their Sec.  73.3613 
documents directly to the online public file, as suggested by certain 
commenters. Eliminating the existing option allowing these stations to 
maintain an up-to-date list of Sec.  73.3613 documents in the public 
file and to provide copies to requesting parties within seven days 
would impose unnecessary burdens on broadcast licensees and permittees, 
including small businesses. For international broadcast stations, the 
Commission retains its ability to obtain Sec.  73.3613 documents from 
licensees and permittees upon request, as needed.
    41. The Order also eliminates a redundant disclosure obligation 
pertaining to certain Sec.  73.3613 documents and expands an existing 
redaction allowance for confidential or proprietary information in 
Sec.  73.3613 documents. Currently, Sec.  73.3613 explicitly allows the 
redaction of confidential or proprietary information for attributable 
TBAs and JSAs, provided that unredacted versions of the agreements 
shall be provided to the Commission upon request. The Order concludes 
that Sec.  73.3613's specific provision allowing the redaction of TBAs 
and JSAs, including the requirement that unredacted copies shall be 
made available to the Commission upon request, should apply to all 
Sec.  73.3613 documents to the extent that they contain confidential or 
proprietary information. Redaction would be necessary only when a 
document is posted to the online public file or provided to the 
Commission or the public upon request.
    42. The rule amendments adopted in the Order will relieve affected 
broadcast stations, including smaller stations, of the obligation to 
file paper copies of certain information with the Commission. We find 
it reasonable to conclude that the benefits of adopting the amendments 
discussed in the Order will outweigh any associated costs, and we 
anticipate that affected entities, including small entities, will 
benefit from the actions taken in the Order.

Ordering Clauses

    43. Accordingly, it is ordered that, pursuant to the authority 
found in sections 1, 4(i), 4(j), 303(r), 309, 310, and 336 of the 
Communications Act of 1934, as amended, 47 U.S.C. 151, 154(i), 154(j), 
303(r), 309, 310, and 336, this Report and Order is adopted.
    44. It is further ordered that, pursuant to the authority found in 
sections 1, 4(i), 4(j), 303(r), 309, 310, and 336 of the Communications 
Act of 1934, as amended, 47 U.S.C. 151, 154(i), 154(j), 303(r), 309, 
310, and 336, the Commission's rules are amended as set forth in 
Appendix A. The amendments in this final rule shall become effective 
thirty (30) days after publication of the text of this Report and Order 
or a summary thereof in the Federal Register.
    45. It is further ordered that the Commission shall send a copy of 
this Report and Order 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).
    46. It is further ordered that, should no petitions for 
reconsideration or petitions for judicial review be timely filed, MB 
Docket No. 18-4 shall be terminated and its docket closed.

List of Subjects

47 CFR Part 73

    Radio, Reporting and recordkeeping requirements, Television.

47 CFR Part 74

    Reporting and recordkeeping requirements, Television.

Federal Communications Commission.
Katura Jackson,
Federal Register Liaison Officer, Office of the Secretary.

Final Rules

    For the reasons discussed in the preamble, the Federal 
Communications Commission amends 47 CFR parts 73 and 74 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, 155, 301, 303, 307, 309, 310, 334, 
336, 339.


Sec.  73.1226  [Amended]

0
2. Amend Sec.  73.1226 by removing paragraph (c).

0
3. Amend Sec.  73.3526 by removing the note to paragraph (e)(3) and 
notes 1 and 2 to paragraph (e), revising paragraphs (e)(3), (5), (14), 
and (16), and adding paragraph (f) to read as follows:


Sec.  73.3526  Local public inspection file of commercial stations.

* * * * *
    (e) * * *
    (3)(i) Citizen agreements. A copy of every written citizen 
agreement. These agreements shall be retained for the term of the 
agreement, including any renewal or extension thereof.
    (ii) For purposes of this section, a citizen agreement is a written 
agreement between a broadcast applicant, permittee, or licensee, and 
one or more citizens or citizen groups, entered for primarily 
noncommercial purposes. This definition includes those agreements that 
deal with goals or proposed practices directly or indirectly affecting 
station operations in the public interest, in areas such as--but not 
limited to--programming and employment. It excludes common commercial 
agreements such as advertising contracts; union, employment, and 
personal services contracts; network affiliation, syndication, program 
supply contracts, etc. However, the mere inclusion of commercial terms 
in a primarily noncommercial agreement--such as a provision for payment 
of fees for future services of the citizen-parties (see ``Report and 
Order,'' Docket 19518, 57 FCC 2d 494 (1976))--would not cause the 
agreement to be considered commercial for purposes of this section.
* * * * *
    (5) Ownership reports and related materials. A copy of the most 
recent, complete ownership report filed with the FCC for the station, 
together with any statements filed with the FCC certifying that the 
current report is accurate, and together with all related material. 
These materials shall be retained until a new, complete ownership 
report is filed with the FCC, at which time a copy of the new report 
and any related materials shall be placed in the file. The permittee or 
licensee must retain in the public file either a copy of the station 
documents listed in Sec.  73.3613(a) through (c) or an up-to-date list 
of such documents. If the permittee or licensee elects to maintain an 
up-to-date list of such documents, the list must include all the 
information that the permittee or licensee is required to provide on 
ownership reports for each document, including, but not limited to, a 
description of the document, the parties to the document, the month and 
year of execution, the month and year of expiration, and the document 
type (e.g., network affiliation agreement, articles of incorporation,

[[Page 65558]]

bylaws, management consultant agreement with independent contractor). 
Regardless of which of these two options the permittee or licensee 
chooses, it must update the inventory of Sec.  73.3613 documents in the 
public file to reflect newly executed Sec.  73.3613 documents, 
amendments, supplements, and cancellations within 30 days of execution 
thereof. Licensees and permittees that choose to retain a list of Sec.  
73.3613 documents must provide a copy of any Sec.  73.3613 document(s) 
to requesting parties within 7 days. In maintaining copies of such 
documents in the public file or providing copies upon request, 
confidential or proprietary information may be redacted where 
appropriate.
* * * * *
    (14) Radio and television time brokerage agreements. For commercial 
radio and television stations, a copy of every agreement or contract 
involving time brokerage of the licensee's station or of another 
station by the licensee, whether the agreement involves stations in the 
same markets or in differing markets, with confidential or proprietary 
information redacted where appropriate. These agreements shall be 
placed in the public file within 30 days of execution and retained in 
the file as long as the contract or agreement is in force.
* * * * *
    (16) Radio and television joint sales agreements. For commercial 
radio and commercial television stations, a copy of agreement for the 
joint sale of advertising time involving the station, whether the 
agreement involves stations in the same markets or in differing 
markets, with confidential or proprietary information redacted where 
appropriate. These agreements shall be placed in the public file within 
30 days of execution and retained in the file as long as the contract 
or agreement is in force.
* * * * *
    (f)(1) For purposes of this section, action taken on an application 
tendered with the FCC becomes final when that action is no longer 
subject to reconsideration, review, or appeal either at the FCC or in 
the courts.
    (2) For purposes of this section, the term ``all related material'' 
includes all exhibits, letters, and other documents tendered for filing 
with the FCC as part of an application, report, or other document, all 
amendments to the application, report, or other document, copies of all 
documents incorporated therein by reference and not already maintained 
in the public inspection file, and all correspondence between the FCC 
and the applicant pertaining to the application, report, or other 
document, which according to the provisions of Sec. Sec.  0.451 through 
0.461 of this chapter are open for public inspection at the offices of 
the FCC.

0
4. Amend Sec.  73.3527 by removing notes 1 and 2 to paragraph (e), 
revising paragraph (e)(4), and adding paragraph (f) to read as follows:


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

* * * * *
    (e) * * *
    (4) Ownership reports and related materials. A copy of the most 
recent, complete ownership report filed with the FCC for the station, 
together with any subsequent statement filed with the FCC certifying 
that the current report is accurate, and together with all related 
material. These materials shall be retained until a new, complete 
ownership report is filed with the FCC, at which time a copy of the new 
report and any related materials shall be placed in the file. The 
permittee or licensee must retain in the public file either a copy of 
the station documents listed in Sec.  73.3613(a) through (c) or an up-
to-date list of such documents. If the permittee or licensee elects to 
maintain an up-to-date list of such documents, the list must include 
all the information that the permittee or licensee is required to 
provide on ownership reports for each document, including, but not 
limited to, a description of the document, the parties to the document, 
the month and year of execution, the month and year of expiration, and 
the document type (e.g., network affiliation agreement, articles of 
incorporation, bylaws, management consultant agreement with independent 
contractor). Regardless of which of these two options the permittee or 
licensee chooses, it must update the inventory of Sec.  73.3613 
documents in the public file to reflect newly executed Sec.  73.3613 
documents, amendments, supplements, and cancellations within 30 days of 
execution thereof. Licensees and permittees that choose to maintain a 
list of Sec.  73.3613 documents must provide a copy of any Sec.  
73.3613 document(s) to requesting parties within 7 days. In maintaining 
copies of such documents in the public file or providing copies upon 
request, confidential or proprietary information may be redacted where 
appropriate.
* * * * *
    (f)(1) For purposes of this section, a decision made with respect 
to an application tendered with the FCC becomes final when that 
decision is no longer subject to reconsideration, review, or appeal 
either at the FCC or in the courts.
    (2) For purposes of this section, the term ``all related material'' 
includes all exhibits, letters, and other documents tendered for filing 
with the FCC as part of an application, report, or other document, all 
amendments to the application, report, or other document, copies of all 
documents incorporated therein by reference and not already maintained 
in the public inspection file, and all correspondence between the FCC 
and the applicant pertaining to the application, report, or other 
document, which according to the provisions of Sec. Sec.  0.451 through 
0.461 of this chapter are open for public inspection at the offices of 
the FCC.

0
5. Amend Sec.  73.3613 by revising the section heading, the section 
introductory text and paragraph (a) introductory text, removing 
paragraphs (a)(3) and (e), and revising paragraphs (a)(2), (b)(3)(iii) 
introductory text, (b)(4), and (d) to read as follows:


Sec.  73.3613  Availability to FCC of station contracts.

    Each licensee or permittee of a commercial or noncommercial AM, FM, 
TV or International broadcast station shall provide the FCC with copies 
of the following contracts, instruments, and documents together with 
amendments, supplements, and cancellations (with the substance of oral 
contracts reported in writing), within 7 days of a request by the FCC.
    (a) Network service: Network affiliation contracts between stations 
and networks will be reduced to writing and filed upon request as 
follows:
* * * * *
    (2) Each such filing shall consist of all of the terms and 
conditions of such contract, agreement or understanding, including any 
other paper or document incorporated by reference or otherwise.
    (b) * * *
    (3) * * *
    (iii) Agreements for the acquisition of licensee's or permittee's 
stock by the issuing licensee or permittee corporation, pledges, trust 
agreements or abstracts thereof, options to purchase stock and other 
executory agreements. Should the FCC request an abstract of the trust 
agreement in lieu of the trust agreement, the licensee or permittee 
will submit the following information concerning the trust:
* * * * *
    (4) Proxies with respect to the licensee's or permittee's stock 
running for a period in excess of 1 year, and all proxies, whether or 
not running for a period of 1 year, given without full and

[[Page 65559]]

detailed instructions binding the nominee to act in a specified manner. 
With respect to proxies given without full and detailed instructions, a 
statement showing the number of such proxies, by whom given and 
received, and the percentage of outstanding stock represented by each 
proxy shall be submitted by the licensee or permittee if the stock 
covered by such proxies has been voted. However, when the licensee or 
permittee is a corporation having more than 50 stockholders, such 
complete information need be filed only with respect to proxies given 
by stockholders who are officers or directors, or who have 1% or more 
of the corporation's voting stock. When the licensee or permittee is a 
corporation having more than 50 stockholders and the stockholders 
giving the proxies are not officers or directors or do not hold 1% or 
more of the corporation's stock, the only information required to be 
filed is the name of any person voting 1% or more of the stock by 
proxy, the number of shares voted by proxy by such person, and the 
total number of shares voted at the particular stockholders' meeting in 
which the shares were voted by proxy.
* * * * *
    (d) Other agreements: Subchannel leasing agreements for Subsidiary 
Communications Authorization operation; franchise/leasing agreements 
for operation of telecommunications services on the television vertical 
blanking interval and in the visual signal; time sales contracts with 
the same sponsor for 4 or more hours per day, except where the length 
of the events (such as athletic contests, musical programs and special 
events) broadcast pursuant to the contract is not under control of the 
station; and contracts with chief operators or other engineering 
personnel.

PART 74--EXPERIMENTAL RADIO, AUXILIARY, SPECIAL BROADCAST AND OTHER 
PROGRAM DISTRIBUTIONAL SERVICES

0
6. The authority citation for part 74 continues to read as follows:

    Authority: 47 U.S.C. 154, 302a, 303, 307, 309, 310, 336 and 554.


Sec.  74.780  [Amended]

0
7. Section 74.780 is amended by revising the entry for ``Section 
73.3613--Filing of contracts (network affiliation contracts for low 
power TV stations only)'' to read ``Section 73.3613--Availability to 
FCC of station contracts (network affiliation contracts for low power 
TV stations only)''.

[FR Doc. 2018-26595 Filed 12-20-18; 8:45 am]
BILLING CODE 6712-01-P