[Federal Register Volume 75, Number 93 (Friday, May 14, 2010)]
[Rules and Regulations]
[Pages 27199-27200]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-11161]
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FEDERAL COMMUNICATIONS COMMISSION
47 CFR Part 73
[MB Docket Nos. 07-294; 06-121; 02-277; 04-228, MM Docket Nos. 01-235;
01-317; 00-244; FCC 10-49]
Promoting Diversification of Ownership in the Broadcasting
Services
AGENCY: Federal Communications Commission.
ACTION: Final rule; correction and correcting amendments.
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SUMMARY: The Federal Communications Commission published in the Federal
Register of May 16, 2008 (73 FR 28361), a Report and Order concerning
steps the Commission took to increase participation in the broadcasting
industry by new entrants and small businesses, including minority- and
women-owned business. This document corrects the Report and Order by
substituting the word ``ethnicity'' for ``gender'' in explaining the
requirements for broadcasters to certify that their advertising
contracts do not discriminate on the basis of race or ethnicity and
that such contracts contain nondiscrimination clauses. In this
document, the FCC also corrects the rules in 47 CFR 73.3555 and 73.5008
published at 73 FR 28361, May 16, 2008, related to steps the Commission
took to increase participation in the broadcasting industry by eligible
entities, including minority- and women-owned businesses.
DATES: The amendments to 47 CFR 73.3555 and 73.5008 in this rule are
effective May 14, 2010, and Form 303-S will become effective 30 days
after the Commission publishes a document in the Federal Register
announcing approval by the Office of Management and Budget.
FOR FURTHER INFORMATION CONTACT: Amy Brett, (202) 418-2703.
SUPPLEMENTARY INFORMATION: This is a summary of the Commission's Third
Erratum, FCC 10-49, adopted March 29, 2010 and released March 29, 2010.
In FR Doc. E8-11039 the Federal Communications Commission published a
Report and Order in the Federal Register of May 16, 2008 (73 FR 28361)
in FCC 07-217.
On page 28364, in the first column, paragraph 11, the Commission
inadvertently used the word ``gender'' instead of ``ethnicity.'' This
document corrects that error and revises the language to read as
follows:
The Commission finds that discriminatory practices have no place
in broadcasting and concludes that it is appropriate for the
Commission to require broadcasters renewing their licenses to
certify that their advertising contracts do not discriminate on the
basis of race or ethnicity and that such contracts contain
nondiscrimination clauses.
Also, in this document the Commission amends Note 2(i) of 47 CFR
73.3555 and 47 CFR 73.5008(c), published at 73 FR 28361, May 16, 2008,
so the rules accurately reflect the Commission's intent.
Need for Correction
As published, the final regulations contain inadvertent errors
which need to be corrected.
List of Subjects in 47 CFR Part 73
Radio, Television.
Federal Communications Commission.
Bulah Wheeler,
Acting Associate Secretary.
0
Accordingly, 47 CFR part 73 is corrected by making the following
correcting amendments:
PART 73--RADIO BROADCAST SERVICES
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1. The authority citation for part 73 continues to read as follows:
Authority: 47 U.S.C. 154, 303, 334, 336, and 339.
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2. Revise paragraph i. of Note 2 to Sec. 73.3555, to read as follows:
Sec. 73.3555 Multiple ownership.
* * * * *
i.1. Notwithstanding paragraphs e. and f. of this Note, the holder
of an equity or debt interest or interests in a broadcast licensee,
cable television system, daily newspaper, or other media outlet subject
to the broadcast multiple ownership or cross-ownership rules
(``interest holder'') shall have that interest attributed if:
A. The equity (including all stockholdings, whether voting or
nonvoting, common or preferred) and debt interest or interests, in the
aggregate, exceed 33 percent of the total asset value, defined as the
aggregate of all equity plus all debt, of that media outlet; and
B.(i) The interest holder also holds an interest in a broadcast
licensee, cable television system, newspaper, or other media outlet
operating in the same market that is subject to the broadcast multiple
ownership or cross-ownership rules and is attributable under paragraphs
of this note other than this paragraph i.; or
(ii) The interest holder supplies over fifteen percent of the total
weekly broadcast programming hours of the station in which the interest
is held. For purposes of applying this paragraph, the term, ``market,''
will be defined as it is defined under the specific multiple ownership
rule or cross-ownership rule that is being applied, except that for
television stations, the term ``market,'' will be defined by reference
to the definition contained in the local television multiple ownership
rule contained in paragraph (b) of this section.
2. Notwithstanding paragraph i.1. of this Note, the interest holder
may exceed the 33 percent threshold therein without triggering
attribution where holding such interest would enable an eligible entity
to acquire a broadcast station, provided that:
i. The combined equity and debt of the interest holder in the
eligible entity is less than 50 percent, or
ii. The total debt of the interest holder in the eligible entity
does not exceed 80 percent of the asset value of the station being
acquired by the eligible entity and the interest holder does not hold
any equity interest, option, or promise to acquire an equity interest
in the eligible entity or any related entity. For purposes of this
paragraph i.2, an ``eligible entity'' shall include any entity that
qualifies as a small business under the Small Business Administration's
size standards for its industry grouping, as set forth in 13 CFR
121.201, at the time the transaction is approved by the FCC, and holds:
A. 30 percent or more of the stock or partnership interests and
more than 50 percent of the voting power of the corporation or
partnership that will own the media outlet; or
[[Page 27200]]
B. 15 percent or more of the stock or partnership interests and
more than 50 percent of the voting power of the corporation or
partnership that will own the media outlet, provided that no other
person or entity owns or controls more than 25 percent of the
outstanding stock or partnership interests; or
C. More than 50 percent of the voting power of the corporation that
will own the media outlet if such corporation is a publicly traded
company.
* * * * *
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3. Section 73.5008 is amended by revising paragraph (c) to read as
follows:
Sec. 73.5008 Definitions applicable for designated entity provisions.
* * * * *
(c)(1) An attributable interest in a winning bidder or in a medium
of mass communications shall be determined in accordance with Sec.
73.3555 and Note 2 to Sec. 73.3555. In addition, any interest held by
an individual or entity with an equity and/or debt interest(s) in a
winning bidder shall be attributed to that winning bidder for purposes
of determining its eligibility for the new entrant bidding credit, if
the equity (including all stockholdings, whether voting or nonvoting,
common or preferred) and debt interest or interests, in the aggregate,
exceed thirty-three (33) percent of the total asset value (defined as
the aggregate of all equity plus all debt) of the winning bidder.
(2) Notwithstanding paragraph (c)(1) of this section, where the
winning bidder is an eligible entity, the combined equity and debt of
the interest holder in the winning bidder may exceed the 33 percent
threshold therein without triggering attribution, provided that:
(i) The combined equity and debt of the interest holder in the
winning bidder is less than 50 percent, or
(ii) The total debt of the interest holder in the winning bidder
does not exceed 80 percent of the asset value of the winning bidder and
the interest holder does not hold any equity interest, option, or
promise to acquire an equity interest in the winning bidder or any
related entity. For purposes of paragraph (c)(2) of this section, an
``eligible entity'' shall include any entity that qualifies as a small
business under the Small Business Administration's size standards for
its industry grouping, as set forth in 13 CFR 121.201, at the time the
transaction is approved by the FCC, and holds:
(A) 30 percent or more of the stock or partnership interests and
more than 50 percent of the voting power of the corporation or
partnership that will own the media outlet; or
(B) 15 percent or more of the stock or partnership interests and
more than 50 percent of the voting power of the corporation or
partnership that will own the media outlet, provided that no other
person or entity owns or controls more than 25 percent of the
outstanding stock or partnership interests; or
(C) More than 50 percent of the voting power of the corporation
that will own the media outlet if such corporation is a publicly traded
company.
[FR Doc. 2010-11161 Filed 5-13-10; 8:45 am]
BILLING CODE 6712-01-P