Processing of FM and TV Broadcast Applications [MM Docket 84-750, NPRM, FCC 85-125]

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Before the 
FEDERAL COMMUNICATIONS COMMISSION 


Washington, D.C. 20554 FCC 85-125 
: 35597 
In the Matter of ) 
) 
Amendment of Sections 73.3572 and ) MM Docket No. 84-750 
73.3573 Relating to Processing of ) 
FM and TV Broadcast Applications ) 


REPORT AND ORDER 
(Proceeding Terminated) 


Adopted: March 14, 1985 : Released; May 6, 1985 


By the Commission: 


Introduction 


1. The Commission has before it a Notice of Proposed Rule Maki ng 


("Notice") in the above-captioned proceeding, 1/ and comments filed in 
response thereto, The Notice proposed replacing the existing two-step cut-off 
procedure utilized to process applications for new commercial FM and TV 
stations and modifications to existing stations in these services 2/ with an 
alternative processing system designed to expedite authorization of new or 
expanded service to the public. 3/ Under the proposed approach, the 
Commission would announce a one-time, fixed filing period - or "window" ~ 
governing all applications for currently vacant channels in the commercial FM 


1/ FCC 84-356 (released September 7, 1984), 49 Fed. Reg. 36523 (September 18, 
1984). 


2 Parallel provisions for the processing of television and FM applications 
are contained, respectively, in Sections 73.3572 and 73.3573 of the 
Commission's rules. 


3/ We observed in the Notice that "we do not contemplate application of these 
procedures to noncommercial FM and TV channels” because of the “special 
problems of ... applicants [for such channels] in securing funding, staff and 
programming before applying for a new station.” Notice at n.10. We are 
convinced that our initial reasoning on this matter remains valid. 
Accordingly, we will not generaily apply the new processing standards adopted 
herein to applications for reserved, noncommercial channels. In certain 
limited circumstances, however, where conflicts between noncommercial and 
commerical facilities occur, "first come/first serve" procedures applicable to 
commercial licensing will affect noncommercial applicants. See n.35 and para. 
37 infra, 


and TV Tables of Allotments or for modifications to existing facilities. Al 
All mutually exclusive applications filed during the window would be subject 
to comparative hearings to determine the best applicant. If only a single 
acceptable application is filed during the window, then that application alone 
would be grantable, subject to the usual qualification criteria. Im the event 
a window closes and no acceptable applications have been filed during the 
window period, a “first come/first serve" processing standard would then apply 
whereby the first acceptable application received would cut off the filing 
rights of any subsequent applicants. Applications for allotments added by 
future Commission orders would be subject to similar filing windows, as 
announced in the appropriate allotment order. ers 


2. Commenters were invited to address the legal ramifications of 
the proposed changes, with particular reference to the notice requirements, to 
review the practical efficacy of the proposal, and finally to comment on the 
specifics of the proposal, including the appropriate duration of the window 
periods. After careful review of the record and analysis of the probable 
costs and benefits of the proposed changes, we are persuaded that, with 
certain modifications, adoption of the alternative processing procedures set 
forth in the Notice is warranted. 


Comments 


3. The commenting parties generally opposed the proposed changes, 6/ 
contending that a filing window will encourage a “gold rush" mentality with ` 
its attendant mass filings and abuse by professional application promoters. 

The National Association of Broadcasters and Dow, Lohnes, and Albertson argue 
that the proposed process substitutes artificial regulatory incentives for 
actual demand and that broadcasters will be forced to file defensive 
modification applications in order to avoid being “locked out" of future 
facilities changes. Most commenters also point to the Commission's 
experiences with date-certain filing procedures, such as those governing the 
low power television, cellular radio and multichannel multipoint distribution 


4/ The FM “Table of Allotments" is found in §73.202 of the Commission's rules 
‘and the TV "Table of Assignments” is found in §73.606. Both tables shall be 
referred to herein as “Tables of Allotments.” At present, the FM Table 
contains 76 available commercial channels and the TV Table contains 129 vacant 
commercial channels. A list of these vacant allotments will be published in 
the near future. Our decision, however, in the Report and Order in BC Docket 
No. 80-90, 94 FCC 2d 152 (1983), and subsequent implementing actions, will add 
some 689 new allotments to the FM Table. See n.12 infra. 


5/ A more detailed description of the filing window ~ “first come/first 
serve" processing system is provided at paragraphs 27~36, infra. 


6/ Parties filing comments in this proceeding are: Lauren Colby; Doug McConnell; 
Black Citizens for a Fair Media and Citizens Communications Center, filing 
jointly; National Association of Broadcasters; National Radio Broadcasters 
Association; Dow, Lohnes, & Albertson; International Broadcasting System; 

Thomas C. Smith; South Wisconsin Co. and Terry Posey, filing jointly; Cohen and 
Dippell; Newport Engineering; and, Eric Hilding. 


services, and maintain that the problems in these services of massive 
application filings and the Commission's inability to timely process those 
applications will be repeated here if we implement the proposed changes. Many 
commenters fear that a sudden influx of applications, which they predict will 
result from the proposed processing system, will force the Commission to adopt 
a lottery mechanism for TV and FM services. Several commenters suggest, as 
well, that actions less drastic than implementation of a filing window and 
“first come/first serve" procedure can achieve the Commission's stated goals 
yet avoid the dangers they see inherent in our proposal. They contend, for 
example, that requiring more stringent showings as to financial qualifications 
and site availability would cut down on "strike" applications. 


4. Citizens Communications Center and Black Citizens for a Fair 
Media ("CCC-BCFM"), as well as other commenters, express concern that the 
proposed 45 day duration for the filing window will particularly disadvantage 
minorities, women and small businesses. They maintain that only well~-financed 
and established entities will be able to respond within such a limited time 
frame. These commenters also focus on the “first come/first serve" aspect of 
the proposed changes, asserting that no public interest rationale has been 
advanced for barring competing applications after the window is closed. They 
argue that the public is best served when the Commission's applications 
processing procedures emphasize selection of the best possible candidate 
rather than expedition of service or administrative savings. 


5. Commenters supporting the proposed changes agree with our 
suggestion in the Notice that the new procedures will deter strike 
applications and promote rapid service to the public. Newport Engineering 
specifically contends that the reduction in comparative hearings, and the 
expenses and delays attendant to such hearings, resulting from the elimination 
of existing cut-off procedures will particularly benefit minorities and small 
businesses. 7/ 


Discussion 


6. As an initial matter, we have decided to apply the window 
filing and "first come/first serve" processing system to FM services only. 
Upon review, it became apparent that the TV processing line, because of 
significantly lower applications volume, has not experienced the range and 
intensity of problems that have faced the FM processing line. There is no 
appreciable backlog in TV nor is there the pressure of a large number of new 
allocations such as the 689 new channels added to the FM Tables as a result of 
Docket 80-90. Therefore, television applications will continue to be 
processed under their current rules. 


7. The Table of Allotments for FM broadcast frequencies is designed 
to promote “fair, efficient and equitable distribution” of these services 


ay Reply comments were filed hy the National Radio Broadcasters Association, 
CCC-BCFM and A.D. Ring and Associates. These commenters reiterated their 
opposition to the proposed processing scheme, maintaining that the Commission 
will not achieve any real benefit by its adoption. 


among various communities. 8/ The Commission's role in designing an 
applications process to assign these frequencies is not simply to administer 
spectrum allocations or to prevent stations from interfering with one 

another. Rather, the Commission also strives to ensure that an expansive menu 
of programming alternatives is made rapidly available to the American 

public, In developing processing guidelines, then, the Commission must strike 
a balance between the dual and sometimes divergent goals of selecting the best 
possible applicant and the commitment to bring new service to the public as 
expeditiously as possible. 


8. In an effort to limit delays in the authorization of new 
broadcast service, our current processing rules utilize a cut-off list 
procedure to restrict the filing rights of applicants. Under these rules, 
once a channel is assigned through a rule making, a construction permit 
application can be filed. After an initial review, the lead application is 
placed on an "A" cut-off list. The public notice announcing the "A" cut-off 
list states that the lead application is acceptable for filing. This notice 
alerts the public to the cut-off date (at least 30 days subsequent) by which 
applications mutually exclusive with and petitions to deny the lead 
application must be filed. The lead applicant is permitted, as a matter of 
right, to make major amendments to its application during this period. The 
second stage of the process involves an initial review of applications filed 
in response to the "A" cut-off list, a determination as to which of these 
applications are mutually exclusive with the lead application, and, finally, 
publication of a list — the "B" cut-off list - enumerating such applications. 
The "B" list sets forth a date for filing petitions to deny against those 
applicants on the "B" list and for filing minor amendments as a matter of 
ri ght * 


9. Our experience indicates that this cut~off processing procedure, 
particularly the publication of the "A" cut~off list which identifies the lead 
applicant and gives notice that its application is on file with the 
Commission, has had the effect of facilitating competing applications that are 
intended to block or delay the initial application. Such applications are 
anticompetitive in nature and effectively postpone service to the public by 
precipitating unnecessary comparative hearings. 9/ Beyond delay, of course, 
these hearings also visit substantial costs on both the lead applicant and the 
Commission. Further, as we stated in the Notice, “these costs and delays may 
deter investors in new broadcast ventures and may have a deleterious effect on 
an individual applicant's ability to finance a new broadcast station." 10/ 


10. Additionally, we have noted the filing of what appear to be 
purely speculative applications that take advantage of the effort and expense 
of the initial applicant and the announced availability of its application by 
copying costly engineering data from the lead application. These applications 


B/ 47 U.S.C. $307. 


oF Comparative broadcast hearings may require as long as two to three years 
to complete. 


10/ Notice at para. 2. 


seem to be motivated by a desire to elicit a settlement from the lead 
applicant or to simply enhance the filing party's chances of success by 
substantially and inexpensively increasing the number of active applications 
before the Commission on its behalf. Like blocking applications, these 
speculative filings encumber and delay the processing of the applications of 
“ready, willing and able” applicants and thus contravene our processing policy 
objectives of expediting service to the public and minimizing administrative 
costs for both applicants and the Commission. 


ll. We also are concerned that our existing approach to processing 
minor modification applications lacks sufficient certainty and, as a result, 
may be wasteful of the Commission's and applicants' resources. Currently, 
when an application for a minor modification is filed, notice of its 
acceptance is given and it is placed in line for processing. Applications in 
conflict or mutually exclusive with the minor modification application may be 
filed up until the day the latter application is granted. Thus, after full 
review of the modification application itself is complete, the Commission is 
required to search its applications files in an effort to determine prior to 
grant whether conflicting applications have been filed. Further, since there 
is some unavoidable delay between receipt and posting of modification 
applications, it is impossible to make this determination without manually 
sorting through the most recent filings. It is possible, therefore, to grant 
a modification application and subsequently discover a timely filed conflicting 
application which would necessitate revoking the grant and reopening the 
application process. This uncertain and time~consuming process has proven 
frustrating both to the Commission and to applicants and is clearly undesirable, 


12, Moreover, our concern with efficiency and finality in 
modification processing is considerably helghtened by our recent decision 
significantly expanding the scope of facilities changes deemed to be minor 
modifications. 11/ That action should increase appreciably the number of 
applications to be processed under minor modification standards and 
underscores the necessity that these standards be clear, certain and workable. 


13. Finally, the need to reduce processing delays affecting 
applications for new stations and modifications and to more effectively utilize 
our applications processing resources has become increasingly urgent as the 
Commission continues planning for the expected influx of FM applications for 
the 689 new allocations stemming from our decision in BC Docket No. 80-90. 12/ 
This large group of newly-designated allocations must not become entangled in 
a processing morass if our underlying objective of substantially expanding the 
availability of FM broadcast service to the public’'is to be achieved. 


11/ In the First Report and Order in MM Docket No. 83-1377, FCC 84-298 
(adopted June 27, 1984), the Commission changed the definition of minor 
modification to encompass all changes in power, antenna location or antenna 
height, without regard to their effect on coverage area. 


12/ The First Report and Order in MM Docket No. 84~231, FCC 84-640 (adopted 
December 19, 1984), added 689 channels to the FM Table, thereby implementing our 
decision in the Report and Order in BC Docket No. 80-90, 94 FCC 2d 152 (1983). 


4, Despite the reservations expressed by the commenters , we are 
persuaded tat the filing window and “first come/first serve" processing 

system outlined in the Notice can significantly ameliorate the foregoing 
problems. The filing window approach, for example, should dramatically reduce 
the filing of anticompetitive and speculative applications, These applications ~ 


depend inherently on access by potential competing applicants to the lead 
application prior to the filing deadline. The existing "A" cut-off list 
processing system ensures such availability by utilizing the lead application 
to trigger the 30 day filing period for mutually exclusive applications. By 
contrast, the new processing system will generally use the allotment order 
adding a new channel to the Tables to trigger a filing window for applications 
directed to that channel. 13/ Potential applicants must file, during this 
window, wi assurance of prior access to other applicants’ — 

E k losing the channel to an applicant that does file in the 
_ window or that files irst after the window closes. Similarly, the st 
come/first serve" aspect of the new processing system will reduce delays in 
authorizing service and encourage “ready, willing and ab e" applicants by ~~ 
_eliminating the competing application stage in cases where the channel in 


question has already been subject to a filing window” and applications have not 


__been forthcoming. — 


“upon filing. 


15. In sum, we believe the proposed processing system offers 
numerous benefits. Before examining the details of this processing scheme, 
however, and the specific objections to it of various commenting parties, we 
must first consider whether our proposed approach properly accommodates the 
procedural rights of prospective broadcast applicants to a hearing, as 
delineated in existing case law. 


16. The Commission traditionally has balanced an applicant's right 
to a comparative hearing with the public's interest in having frequencies 
occupied and operating. As we observed in the Notice, the Communications Act 
of 1934, as amended, does not specifically provide for the filing of mutually 
exclusive applications for new facilities. The Act does provide that 
applications for new facilities cannot be granted for thirty days following 
public notice of their acceptance for filing and that those applications 
cannot be denied without affording the applicant the right to a hearing. 

47 U.S.C. $309. In Ashbacker v., FCC, 326 U.S. 327-(1945), the Court construed 
these provisions to require the Commission to consider two mutually exclusive 


13/ Application filing windows for vacant channels currently on the Tables, 
of course, were not prescribed in the original allotment orders adding those 
channels. This Report and Order will serve that purpose. Furthermore, as 
explained below, we will announce filing windows for allotments added as a 
result of our actions in Dockets 80-90 and 84~231 by separate public notices 
in order to control the Commission's workload. In all cases, however, the 
filing windows will be independent of any lead application for the channel 
concerned. 


broadcast applications, both of which had been accepted for filing, in a 
comparative hearing before denying one and granting the other. The Court 
noted, however, that the Commission could promulgate regulations limiting the 
filing rights of competing applicants. 14/ Thus, while Ashbacker requires 
comparative hearings in choosing between mutually exclusive applicants, it 
leaves to the Commission's discretion the circumstances under which 
applications are considered mutually exclusive. 15/ 


17. The Commission has exercised this discretion over the years and 
limited the filing rights of competing applicants in order to provide 
certainty, to avoid disruptions in the processing procedures for high demand 
services or to further other compelling public interest objectives. In the 
Report and Order in MM Docket No. 83-1148, 16/ for example, we determined that 
competing applications should not be permitted to be filed against the 
application of an incumbent licensee for a higher class channel where 
additional channels of similar class were available for which other applicants 
could compete. In this situation, the Commission found that expedition of 
service and the promotion of enhanced service from existing licensees 
outweighed the interest in selecting licensees by comparative processes. 17/ 
Similarly, in the domestic one-way paging service, the Commission insulates 
certain applicants proposing to change frequencies from competing applications 
in order to expedite service and encourage the negotiation and settlement of 
frequency conflicts. 18/ Finally, the use of cut-off procedures has heen 
acknowledged by the Court as a reasonable and necessary limitation on the 
statutory right to a comparative hearing. 19/ However, any regulations 
„limiting the right to a hearing must give Fair notice to the public of what is i 


being cut~off. 20/ ‘Therefore, although the Commission can be flexible in” ~ 


“establishing ' ee rules, aly applicants m must be” treated | equally” and — 


18, Under the window filing and “first come/first serve" processing 
system full and complete notice is achieved. Each frequency added to the 
Table of Allotments is the result of a notice and comment rule making in which 


147 See Ashbacker v. FCC, 326 U.S, 327, 333 n.9. 


15/ MCI Airsignal International, Inc., FCC 84-397, Mimeo No. 34965 (released 
August 17, 1984). 


d6/ FCC 84-358, 49 Fed. Reg. 34007 (August 28, 1984), 56 RR 2d 1253 (1984). 


ai} See Report and Order in MM Docket No. 83-1148, FCC 84-358, Mimeo No. 
34861 (released August 16, 1984). 


18/ See MCI Airsignal International, Inc., supra n.15 and Digital Electronic 
Message Service, 88 FCC 2d 1716, 1723 and nn.10, 12 (1982). 


Radio Athens v. FCC, 401 F.2d 398, 400-401 (D.C. Cir. 1968). 


19/ 
20/ See Ridge Radio v. FCC, 292 F.2d 770, n.6 (D.C. Cir. 1961). 
21/7 


Century Broadcasting Corp. v. FCC, 310 F.2d 864, 867 (D.C. Cir. 1962). 


the public has had an opportunity to participate. Thus, inclusion in and 
publication of the Tables in the Federal Register constitutes notice to the 
world of a channel's availability. 22/ By designating “window” filing dates, 
all interested parties will be on notice that the Commission will grant the 
vacant channel to a sole qualified applicant who files or that it will 
designate mutually exclusive applicants for a comparative hearing. 23/ Under 
the “first come/first serve" aspect of our lasers all vacant channels that 
are not applied for during the window will be granted to the first ec 


applicant to file. “Of course, the statutory right to file petitions to deny” 


will be preserved to assure that any allegations that an application is 


inconsistent with the “public interest, convenience and necessity” may be se 


EAT and subsequent cases. 


19. Turning from legal requirements to policy considerations, many 
of the commenters maintain that the proposed processing system will create a 
“gold rush" mentality with applicants filing out of fear of being foreclosed 
rather than in response to marketplace stimulus. To the extent the window 
filing and "first come/first serve” system motivates interested parties to act 
quickly rather than to wait for the lead applicant to come forward, we believe 
it directly furthers the public interest. A fallow frequency on the Tables of 
Allotments represents a loss to the community and the public henefits from 
serious candidates moving quickly to bring service on line. To the extent 
commenters may be suggesting that parties will file protectively even though 
economic conditions do not warrant proceeding, we are not convinced that this 
possibility poses any real risk. 


20. Many commenters point to the flood of applications received in 
other services subject to “date~certain” application processes, i.e., low 
power television, cellular radio, and muitichannel multipoint distribution, as 
evidence supporting their predictions of a large influx of applications if the 
proposed processing criteria are implemented. Beyond the fact that these are 
all new services, several factors distinguish our decision here from those 
referred to by commenters. First, all applications received during the window 


22) Window processing may be found appropriate for nontabled services when 
another event constitutes notice. See Report and Order in MM Docket No. 83- 
1350 (Low Power Television and Translator Service), 49 Fed. Reg. 47837 
(December 7, 1984). 


237 There is now substantial Commission precedent for the use of filing 
"windows" or date-certain processing to expedite service. Date-certain 
procedures have been used, for example, in processing common carrier [First 
Report and Order, 89 FCC 2d 1337 (1982)], private radio [Second Second Report and 
Order, 90 FCC 2d 1281 (1982)}], and low power television (Report and Order | and Order in 
MM Docket No. 83-1350, supra n.22} applications. 


24/ The Communications Act-of 1934, as amended, $309(d)(i) secures the right 
of any party in interest to file a petition to deny and §73.3504 of the 
Commission's rules sets forth the procedures for making such filings. 


for FM channels are subject to full comparative hearings 1f mutually exclusive 
applications are received. The substantial effort and expense involved in 
such proceedings should serve to discourage frivolous and speculative 
applications, 


21, Moreover, we now have the advantage of hindsight in reviewing / 
our past expe with date-certain filings and we are acutely aware of 

- previous shor 8. Those experténces and useful Suggestions by various 

commenters in this proceeding have prompted us to take a “hard~look” approach 

to the processing of applications in order to deter the frivolous filings ‘that 


_ frustrate. ready _ applicants an the Commission’ 8 processing syst 


22. Several commenters suggested that site availability 
certification be utilized to deter speculative applications. We think this 
proposal has merit. The Commission has held that although an applicant need 
not necessarily go as far as to demonstrate absolute assurance, an applicant 
should be able to show some reasonable assurance that the site for each 
proposed transmitting antenna is available. A mere possibility that a site 
will be available is not sufficient. William F., Wallace and Anne K, Wallace, 
49 FCC 2d 1424 (Rev. Bd. 1974). Commission requirements wil be satisfied _ 
when an applicant has contacted the property owner or owner's agent and has 
obtained reason me E proposed site will be 
available for the intended purpose. “Therefore, ‘we are adding a question to 
FCC Form 301 25/ which will require an applicant to certify that reasonable 
assurance has been obtained from the property owner that the site will be 
available, In the interim, before the changed Form 301 is available, 
applicants should attach such certification to the old form. The 
certification will include a reference to the name and telephone number of the 
person contacted. This additional step simply requires verification of our 
current policy and will aid in deterring frivolous applications that frustrate 
our processing goals, To that same end, the Commission will contact, on a 
random basis, the property owners or their agents who have been named in an 
application to determine whether the required assurances have been obtained. 


23. As a further component of our “hard look" approach we are 
instituting a tender review of applications. Under our previous system, many 
errors in key portions of the applications remained undetected until 
considerable processing time and effort had already been expended. Discovery 
of fundamental errors so far along in the procesing chain resulted in 
significant delays both in disposing of the flawed applications and in 
processing problem-free but mutually exclusive applications as well as impeded 
the disposition of unrelated, problem-free applications. Therefore, to _ 
prevent carelessly prepared, unprocessable applications from _burdening ‘the _ E 
processing system, we will require applications to be substantially mplete 
at tender or they will be returned, thereby losing their filing status. “In” 
order to assist applicants in satisfying our tender standards, we are 
attaching hereto as Appendix “D” a detailed list of the criteria utilized in 
evaluating the substantial completness of applications. This strict approach 
to the tenderability of applications comports with our concurrent commitment 


25/ “Application for Authority to Construct or Make Changes in an Existing 
Commercial Broadcast Station.” See Appendix B. 


10 


to strictly enforce construction permit schedules, 26/ Both will deter the 
filing of speculative applications by parties not ready, willing and able to 
construct. 


24, As an additional component of ovr “hard-look” approach, we 
reiterate our position with respect to multiple applications. Applicants will 
not be permitted to "flood the Commission's processing line and hearing docket 
with multiple applications many of which could not be granted under our 
multiple ownership rules." Storer Broadcasting Co., 43 FCC 1254, 1256 (1953). 
Accordingly, we shall regard Section 73.3555 as establishing the maximum 
number of applications acceptable for filing by an applicant. Applications 
tendered in excess of this number shall be considered inconsistent with 
Section 73.3518 and returned as unacceptable for filing. In this regard, we 
note that stations in which the applicant currently holds a cognizable 
ownership interest would be taken into account in determining the maximum 
number of acceptable applications. 27/ 


25. The Commission believes that important benefits can be obtained 
from this "“hard~-look" approach. First, the reduction of frivolous and 
speculative applications will enable us to expedite the processing of 
applications tendered by serious candidates who are “ready, willing and able" 
to rapidly bring service to the public. Secondly, streamlining our processing 
procedures will minimize the Commission's administrative costs, enabling us to 
make more efficient use of our limited staff and other resources. These 
benefits are critical to making the window filing and "first come/first serve" 
process work smoothly and with minimal delay in processing large numbers of 
applications. 


26. Finally, several commenters maintain that minorities, women and 
small businesses are disadvantaged by the short filing cycles which they 
believe will result from the adoption of the proposed processing system. We 
note, however, that a routine notice and comment rule making proceeding to 
establish a new allotment requires at least 90 days to complete. Adding this 
period to the 45 days normally required before an allotment order becomes 
effective and the subsequent 30 day filing window, yields a lead time of at 
least 165 days in which interested parties may prepare applications. This 


26/ Section 73.3598(b) of the Commission's Rules specifies a 12 month 
construction period for new FM stations or modifications to existing FM 
facilities. The Commission will not favorably consider applications for 
extensions of this time to construct except in the most unusual circumstances. 
See Public Notice, "Guidelines Established for Processing of Applications for 
Additional Time Within Which to Construct AM and FM Broadcast Stations,” 
released May 14, 1984, Mimeo No. 4144, Failure to comply with the 
construction deadlines imposed by the permit wiil result in forfeiture of the 
authorization pursuant to Section 73.3599 of the Commission's Rules. 


27/ In the event that multiple applications exceeding the prescribed limits 
are filed on the same day, the Commission will sequentially consider them in 
whatever order they are reached on the processing line until the multiple 
ownership limit is reached. Any remaining applications will be returned. 


ll 


length of time seems entirely adequate to avoid any disadvantage to 
minorities, women or small businesses in availing themselves of newly allotted 
channels. Similarly, in the case of the estimated 689 new channels allocated 
in the wake of our decision in BC Docket No. 80-90, all interested parties 
will have fully adequate time to prepare. The First Report and Order in MM 
Decket No. 84-231, which specified the channels which would be added to the FM 
Table and the communities in which such channels would be available, was 
adopted in December 1984, 28/ Today, in a companion item, we are announcing a 
random selection system that will be used to determine the sequence in which 
these allotments will be opened for applications. 29/ The first window in a 
series of windows for these allocations will probably open sometime this 
summer and subsequent windows will be opened on a rolling basis until all are 
completed. Therefore, even for the first availability, parties will have had 
several months to prepare and will have several years for the last allocation 
in this group. Finally, we note that the new processing system is intended to 
reduce the incidence of unnecessary comparative hearings and to expedite 
applications processing generally. We believe this wili directly benefit 
minorities and other prospective applicants with limited resources. 30/ 


The Filing Window ~ “First Come/First Serve" Processing System ve 


27. The following is a brief discussion of the details of the 
applications processing system we are today adopting. For purposes of 
clarity, we will break the system discussion into two parts: (A) treatment of 
applications filed within the window period and (B) treatment of applications 
for channel allotments that received no applications during their filing 
windows and are thus subject to "first come/first serve” processing. 


A. The Window Processing System 


28. With respect to channels which, as of the adoption date hereof, 
are either already in the Table and available for application or will be added 
to the Table pursuant to orders previously adopted by the Commission but which 
are not yet effective, the 30-day filing window will open on the thirty-first 
(3lst) day after the date of publication of this Report and Order in the 
Federal Register and will close on the sixtieth (60th) day after such 
publication. An existing licensee or permittee should file an application for 
modification during this window period if its proposed change would affect or 
be affected by potential operations on a vacant channel allotment or by 
modifications to other existing stations. 


28/ See n.12 supra. 


29/ Second Report and Order in MM Docket No. 84-231, FCC 85-124, adopted 
March 14, 1985. 


30/ Congress, in its Conference Report on lotteries, stated "It is clear that 
the current comparative hearing has not resulted in the award of significant 
numbers of Licenses to minority groups. Many minority applicants are simply 
unable to participate in comparative hearings which often take a considerable 
period of time and require substantial economic resources." H.R. Rep. No. 97- 
765 (accompanying H.R. 3239), 97th Cong., 2d Sess. 44 (1982). 


12 


29, For future allotments, we will use the Commission's decision to 
add a channel to the FM Table of Allotments as the invitation to all interested 
parties to file applications for that channel. Each Report and Order designating 
a new channel will identify a window filing period which wiil begin upon the 
effective date of the allotment Order and continue for not less than 30 days 
thereafter. In the case of the 689 new allocations created by Docket 80-90, the 
Audio Services Division of the Commission's Mass Media Bureau will issue Public 
Notices ET AEN applicable window filing periods as its workload permits. 


All applications filed within the relevant window period will 
be processed for consolidated consideration, with appropriate opportunities 
for the filing of petitions to deny. Any mutually exclusive applications for 
new facilittes or for modifications to existing facilities filed during the 
window will be grouped for comparative hearings. 


31. In evaluating applications, any and all amendments filed before 
the close of the applicable filing window will be considered with the 
application. Applications will be thereafter restricted as to when amendments 
may be filed. 31/ Applications which have been found acceptable for tender 
purposes will be placed on publicly released Notices of Tenderability. From 
the release of such notice, applicants will have a 30 day period to amend or 
perfect their applications at will and as a matter of right. However, if an 
incomplete application has been inadvertently accepted for tender, it will be 
stripped of its file number and returned; it may not be perfected to pass 
tender review. Amendments may only go to the acceptability or grantability of 
an application. 32/ The amendment period will have one further restriction, 
an application may not retain window status if it is amended, even for 
perfecting purposes, after the window closes and the effect of such amendment 
is to produce a conflict with an application filed prior to the amendment. We 
believe this restriction is essential to maintain the integrity of the new 
processing system and that it is fully consistent with James River 
Broadcasting v. FCC, 393 F.2d 581 (D.C. Cir. 1968). That case held that the 
Commission had violated its own rules in refusing to permit an applicant to 
perfect its application with an amendment and to retain its initial filing 
status. The court also stated that, as a policy matter, perfecting amendments 
should be allowed "[so] long as the defect can be removed without otherwise 
injuring any public or private interests . . . ." Id. at 584. First, we note 
that the processing rules that were the basis for James River are herein 
dramatically changed. In any event, to permit a perfecting amendment that 
creates a conflict with an application filed prior to such amendment harms the 
public interest in expedition of service and processing certainty that the 


31/ It is proper for us to make these revisions to the amendment process on 
our own motion. Both the Administrative Procedure Act and our own regulations 
exempt rules of practice and procedure from notice and comment rule making 
requirements. 5 U.S.C. §553¢b)(A); 47 C.F.R. §1.412(a) (5). 


32/ There are two classes of amendments that are acceptable at any time: (1) 
amendments required by 47 C.F.R. $1.65 and (2) amendments which extricate an 
application from conflict with other applications and which trigger no new 
conflicts, including amendments filed pursuant to an agreement between 
applicants under 47 C.F.R. §73.3525. 


aam 


13 


window processing system seeks to accomplish. Under such a system, we would 
be unable to process otherwise grantable applications on the possibility that 
unrelated applications might be amended to produce a conflict. Moreover, to 
allow such amendments to retain priority as to intervening applications for 
other channels or in other communities would prejudice the private interests 
of the applicants for these other channels who sought in good faith to 
initiate service to the public. Finally, the nonacceptance of a perfecting 
amendment in James River resulted in an applicant being foreclosed from the 
comparative process because, by being disqualified and thereby missing the 
cut~off date, he lost his opportunity to compete for a license. Here, the 
limitation on perfecting amendments that create a conflict with prior 
applicants results not in foreclosure but simply in site restriction. e— 


32. Following the passage of the 30-day amendment period, the 
application and any amendments will be studied for acceptabilitiy, i.e., 
compliance with the technical requirements for FM facilities. If the 
application is found acceptable, it will be placed on a publicly released 
“Notice of Acceptability” inviting the filing of petitions to deny. If the 
application is found to be unacceptable, it will be returned. Resubmission of 
such an application with a curative amendment will not gain it nunc pro tunc 
Status since applicants were afforded 30 days after the release of the Notice 
of Tenderability to amend their applications into acceptable form. To permit 
curative amendments after that period poses too great a threat to the orderly 
functioning of our new processing procedures. 


B. The “First Come/First Serve" Processing System 


33. If no applications are filed during the window, the first 
acceptable application for the channel will cut-off the filing rights of 
subsequent applications for that channel and applications for any channel in 
conflict with or for modifications to existing facilities that are 
inconsistent with the first-filed application. If an application for 
modification is the first-filed after the window closes, applicants for the 
new channel and applicants for inconsistent modifications would be limited 
thereby in their site selections. We believe that any subsequent applicants 
were on notice of the availability of the channel from its inclusion in the 
Table, and they had ample opportunity to file during the window or to be 
first~filed after the window period. Therefore, cutting off such applications 
is not unreasonable and will expedite new service to the public on a fallow 
channel. All "first come” applications will be considered as simultaneously 
filed if filed on the same day. As with window applications, we will process 
the application(s), entertain petitions to deny and, where appropriate, 
designate applications for hearings. 


34. Applications received after the lead application will be 
grouped behind the lead application in a queue according to the date of 
filing. Priority rights for the lead applicant as against other applicants 
for the same channel, applicants for other channels or in other communities 
whose applications conflict with the lead application and applicants for 
modifications to existing facilities that are inconsistent with the lead 
application are determined by the filing date of the lead application. The 
filing dates of subsequent applicants fer that channel and community, however, 


14 


only determine their place in the queue. The rights of an applicant in the 
queue would ripen as to applicants outside the queue only upon a finding that 
the lead application is unacceptable and then only if the queued application 
is reached and found acceptable. We will process within the queue until we 
find an acceptable application. If a queued applicant is determined to be 
acceptable, his rights, vis a vis applicants outside the queue, vest on the 
date of his acceptance. The queue will remain behind the lead applicant until 
a construction permit is granted. 33/ If there is no queue or no queue member 
is found to be acceptable, that channel remains subject to "first come/first 
serve" treatment. At the grant of a construction permit the queue dissolves. 


35. With respect to amendments in the "first come/first serve" 
processing system, applicants may amend their applications for a period of 
thirty days following the issuance of the Notice of Tenderability. For 
reasons directly analogous to those underlying our restriction on certain 
amendments of applications filed during a window, we will not permit a “first 
come” applicant to amend its application and to retain its initial filing 
priority date as to applicants for other channels or in other communities or 
for modifications to existing facilities and with whom the amendment creates a 
conflict. 34/ As with window applications, we believe this approach is 
necessary to preserve the certainty and expedition that our new processing 
system is intended to achieve and that it is entirely consistent with the 


court's decision in James River Broadcasting v. FCC, supra. 


66) If a channel allotment is vacated after issuance of the 
construction permit, regardless of whether the construction permit was granted 
as a result of window or “first come/first serve” processing, we will, by 
public notice, announce a subsequent filing window for the acceptance of new 
applications for that channel. 


Other Matters 


37. In a small number of cases where the commercial and non- 
commercial FM bands are adjacent, our decision to apply the window processing 
system to commercial channel applicants but not to applicants for reserved 
channels may create some problems. 35/ It is appropriate, therefore, that we 
clarify our procedures for these exceptional cases. If an applicant for a 
reserved channel has generated a cut-off list that overlaps a commercial 
window, the commercial applicant must file within the cut-off period ~ it may 
not rely on its window deadline - if it seeks mutually exclusive status with 
the educator. After the relevant commercial window closes, an educator and a 
commercial applicant would both be subject to "first in time, first in right” 


34/ See para. 31 supra. 


35/ Noncommercial, educational entities applying for a channel on the 
commercial band will be subject to the filing window and "first come/first 
serve" processing system. 


S 


| a 


15 


status as to each other. 36/ Of course, any conflict between educational 
applicants will continue to be resolved through the traditional cut-off 
procedures. We anticipate minimal effect on educators, but alert them that in 
those areas of the FM band where spacing as against commercial licensees is 
problematical they may be affected by the “first come/first serve” rules 
applicable to the commercial FM band. 


38. To ensure a smooth transition to the new processing guidelines, 
we are hereby instituting a freeze on applications for new commercial FM 
stations and modifications to exisitng facilities in these services for a 
period of 30 days following publication of this document in the Federal 
Register . This step is essential to permit the Commission to reduce the 
number of currently pending applications, to which existing processing 
criteria apply, in preparation for shifting over to the new processing system 
and standards. 


39. Procedural fairness requires us to complete processing of those 
applications for new channels or major modification of existing facilities 
that are currently on file. Therefore, applications and petitions to deny 
tendered after today will be accepted only if they are in response to "A" and 
"B" cut-off lists of pre~freeze applications. 


40. The only minor modification applications that will be 
acceptable during the freeze are those filed in response to applications 
already on file as of the adoption date of this decision. Moreover, the 
applicant must identify the application that he is filing against. 37/ 
However, in keeping with current minor modification processing practices, any 
application now on file may be granted at any time and such grant will cut-off 
the filing rights of all subsequent applicants. 


41, Pursuant to the requirements of Section 603 of the Regulatory 
Flexibility Act, 5 U.S.C. $603, a final regulatory flexibility analysis has 
been prepared and is attached hereto as Appendix C. 


42, The proposal contained herein has been analyzed with respect to 
the Paperwork Reduction Act of 1980 and found to impose new or modified 


36/ Commercial applicants whose filing window has not yet opened at the time 
a potentially conflicting noncommercial application is filed may not file a 
competing application for the commercial channel in response to the 
noncommercial applicant's “A“ cut-off list. To permit such a filing would 
undermine the control over applications processing that the window mechanism 
is intended to provide. The prospective commercial applicant may, of course, 
file a petition to deny against the noncommercial application within the 
prescribed filing period for such petitions. 


37/ This requirement is necessary in order to simplify and expedite the 
processing of modifications during the freeze. Any modification application 
not so identifying a pre~freeze application as a basis for filing will be 
judged unacceptable for filing during the freeze period. 


16 


requirements or burdens upon the public, Implementation of any new or 
modified requirement or burden will be subject to approval by the Office of 
Management and Budget as prescribed by the Act. 


43. Accordingly, IT IS ORDERED, THAT Part 73 of the Commission's 
Rules IS AMENDED, effective June 12, 1985 , as set forth in the 
attached Appendix A. 


44. IT IS FURTHER ORDERED, THAT effective as of the close of 
Commission business on the day of adoption of this Order and until 30 days 
after its publication in the Federal Register, applications MAY NOT BE FILED 
either for new commerical FM channels or for modification of existing 
facilities in this service, except to the extent such applications are filed 
in response to Commission cut-off lists resulting from applications filed 
prior to the adoption date of this Order or are filed against and in conflict 
with modification applications already on file as of the adoption date of this 
Order. 38/ 


45. IT IS FURTHER ORDERED, THAT the Secretary SHALL CAUSE a copy of 
the Report and Order to be printed in the FCC Reports. 


46, IT IS FURTHER ORDERED, THAT the Secretary SHALL SEND a copy of 
this Report and Order, including the Final Regulatory Flexibility Analysis, to 
the Chief Counsel for Advocacy, Small Business Administration. 


47, IT IS FURTHER ORDERED, THAT this proceeding IS TERMINATED. 
48. This action is taken pursuant to authority contained in 
Sections 1, 4(i) and (j), 5€d)(1), 303 and 309(b) of the Communications Act of 


1934, as amended, 


49, For further information concerning this proceeding, contact 
Lane Howard Moten, Mass Media Bureau (202} 632-7792, 


FEDERAL COMMUNICATIONS COMMISSION 


William J. Tricarico 
Secretary 


38/ Immediate implementation of this Order is required because a 30-day delay 
would frustrate the purpose of the freeze. 


17 


APPENDIX A 


Part 73-Radio Broadcast Services 


1. §73.3564 is amended by revising paragraphs (a), (c) and (d) to read as 
follows: 


(a) Applications tendered for filing are dated upon receipt and 
then forwarded to the Mass Media Bureau, where an administrative examination 
is made to ascertain whether the applications are complete. Except for low 
power TV, TV translator applications and non-reserved band FM (except for 
Class D} applications, those found to be complete or substantially complete 
are accepted for filing and are given file numbers. In the case of minor 
defects as to completeness, the applicant will be required to supply the 
missing information. Applications that are not substantially. complete will be 
returned to the applicant. In the case of non-reserved band FM applications, 
those found to be substantially complete at tender are accepted for tender and 
are given file numbers. Non-reserved band FM applications that are not 
substantlally complete will be returned to the applicant. In the case of low 
power TV and TV translator applications, those found to be complete are 
accepted for filing and are given file numbers. Low power TV and TV 
translator applications that are not complete will be returned to the 
applicant. 


(b) * * % 


(c) At regular intervals, the FCC will issue a Public Notice 
listing all applications and major amendments thereto which have been accepted 
for filing, except for non-reserved band FM stations and low power TV and TV 
translator stations. Pursuant to §§73.3571(c), 73.3572(c) and 73.3573(d) such 
notice shall establish a cut-off date (not less than 30 days from the date of 
issuance) for the filing of mutually exclusive applications and petitions to 
deny. However, no application will be accepted for filing unless certification 
of compliance with the local notice requirements of §73.3580(h) has been made 
in the tendered application. 


(d) New and major change applications for non~-reserved band FM 
stations (except for Class D stations) and for low power television and 
television translator stations will be accepted only on date(s) specified by 
the Commission. Low power TV and TV translator station filing period(s) will 
be designated by the Commission in a Public Notice. Non-reserved band FM 
facilities and major change applications will have filing dates designated by 
the Commission in the following manner: 


(1) For all vacant non-reserved band FM allocations listed on the 
FM Table of Allotments, §73.202, as of March 14, 1985, a one-time filing 
period or “window” will open for 30 days, beginning on the 31st day after the 
date of publication of the Report and Order in MM Docket No. 84-750 in the 
Federal Register and will close on the 60th day after such publication. (This 
filing window does not apply to the 689 FM channels added to the FM Table of 
Allotments by the Commission's decision in MM Docket No. 84-231). 


18 


(2) The 689 FM allocations added to the FM Table of Allotments by 
MM Docket 84-231 will be subject to a series of windows. The Audio Services 
Division of the Mass Media Bureau will establish, by Public Notice, the window 
filing dates for this group of allotments. 


(3) Each Report and Order specifying a new non~reserved FM band 
allocation will identify the window filing period which will begin upon the 
effective date of that Order and continue for at least 30 days. 


(4) Where no applications are tendered during a window filing 
period, applications may be tendered any time after the window closes. These 
applications will be processed on a “first come/first serve" basis and will be 
treated as simultaneously filed if filed on the same day. Any applications 
received after the filing of a lead applicant will be placed in a queue, 
according to filing date, behind the lead applicant, 


(5) If a non-reserved band FM channel allotment is vacated after 
the grant of a construction permit becomes final, because of a lapsed 
construction permit or for any other reason, the FCC will, by Public Notice, 
announce a subsequent filing window for the acceptance of new applications for 
such channels. 


(6) However, no application will be accepted for tender unless 
certification of compliance with the local notice requirements of §73.3580(h) 
has been made in the tendered application. 


2. §73.3573 is amended by revising paragraphs (d) and (e) and adding 
paragraphs (f) and (g) to read as follows: 


§73.3573 Processing FM Broadcast and FM Translator Station Applications 


G + * * x 


(d) Applications for reserved band and Class D FM broadcast 
Stations will be processed as nearly as possible in the order in which they 
are filed. Such applications will be placed in the processing line in 
numerical sequence, and will be drawn by the staff for study, the lowest file 
number first. In order that those applications which are entitled to be 
grouped for processing may be fixed prior to the time processing of the 
earliest filed application is begun, the FCC will periodically release a 
Public Notice listing applications which have been accepted for filing and 
announcing a date (not less than 30 days after publication) on which the 
listed applications will be considered available and ready for processing and 
by which all mutually exclusive applications and/or petitions to deny the 
listed applications must be filed. 


(e) Where reserved band plus Class D applications are mutually 
exclusive because the distance between their respective proposed transmitter 
sites is contrary to the station separation requirements set forth in $73.507, 
such applications will be processed and designated for hearing at the time the 
application with the lower file number is reached for processing. In order to 
be considered mutually exclusive with a lower file number application, the 
higher file number application must have been accepted for filing at least one 
day before the lower file number application has been acted upon by the FCC. 


19 


(£) Processing non-reserved FM broadcast station applications. 


(1) Applications for non-reserved FM broadcast stations will be 
processed as nearly as possible in the order in which they are tendered. Such 
applications wili be placed in the processing line in numerical sequence, and 
will be drawn by the staff for study, the lowest file number first. The FCC 
will specify, pursuant to §$73.3564(d), the filing periods for non-reserved 
band FM applications. 


(2) All applications received during the appropriate filing period 
or "window" which are found to be mutually exclusive will be designated for 
hearing. All other applications will, if the applicants are duly qualified, 
receive grants. The FCC will periodically release a Public Notice listing 
applications pending hearings or grant and announcing a date (not less than 30 
days after issuance) by which petitions to deny must be filed. 


(3) If, after the close of the appropriate window filing period, a 
non~reserved FM allotment remains vacant, processing for that channel will be 
on a “first come-first serve” basis with the first acceptable application 
cutting off the filing rights of subsequent applicants. All applications 
received on the same day will be treated as simultaneously tendered and, if 
they are found to be mutually exclusive, will be designated for hearing. 
Applications received after the tender of a lead application will be grouped, 
according to filing date, behind the lead application in a queue. The 
priority rights of the lead applicant, as against all other applicants, are 
determined by the date of filing but the filing date for subsequent applicants 
for that channel and community only reserves a place in the queue. The rights 
of an applicant in a queue ripen only upon a final determination that the lead 
applicant is unacceptable and if the queue member is reached and found 
acceptable. The queue will remain behind the lead applicant until a 
construction permit is finally granted, at which time the queue dissolves. If 
there is no queue or if no queue member is found acceptable, that allotment 
remains subject to "first come-first serve" processing. The FCC will 
periodically release a Public Notice listing those pending hearings or grant 
and announcing a date (not less than 30 days after issuance) by which 
petitions to deny must be filed. 


(g) Resolving processing conflicts between the reserved and non= 
reserved bands. The reserved bands include Class D stations. 


(1) Reserved band applicants, applying for a channel on the non- 
reserved band are subject to the processing procedures in Section (f). 


(2) If a reserved band applicant has generated a cut-off list that 
overlaps a non-reserved band window filing period, the non-reserved band 
applicant must file within the cut-off if he seeks mutually exclusive status 
with the reserved band applicant. 


(3) Following the close of a non~reserved band application filing 
window, the non-reserved band applicant is subject to the “first come/first 
serve” rules and would lose.to a pre-filed reserved band applicant. 


20 


3. §73.3522 is amended by revising paragraphs (a)(1) and (a)(2) and adding 
paragraph (a)(6) to read as follows: 


§73.3522 Amendment of applications 


‘€(a) Predesignation amendment. (1) Subject to the provisions of 
§§73.3525, 73.3571, 73.3572, 73.3573, and 73.3580, and except as provided in 
paragraph (a)(2) of this section, any application, other than an application 
for a low power TV, TV translator station, or a non-reserved band FM station 
may be amended as a matter of right prior to the adoption date of an order 
designating such applications for hearings, merely by filing the appropriate 
number of copies of the amendments in question duly executed in accordance 
with §73.3513. If a petition to deny (or to designate for hearing) has been 
filed, the amendment shall be served on the petitioner. 


(2) Subject to the provisions of §§73.3525, 73.3571, 73.3572, 
73.3573 and 73.3580, and except for applications for low power TV, TV 
translator stations, or a non-reserved band FM station, mutually exclusive 
broadcast applications may be amended as a matter of right by the date 
specified (not less than 30 days after issuance) in the FCC's Public Notice 
announcing the acceptance for filing of the last-filed mutually exclusive 
application. Subsequent amendments prior to designation of the proceeding for 
hearing will be considered only upon a Showing of good cause for late filing 
or pursuant to §1.65 or §73.3514. Unauthorized or untimely amendments are 
subject to return by the FCC's staff without consideration. 


(3) * * & 


(5) * * * 


(6) Subject to the provisions of §§73.3525, 73.3573 and 73.3580, 
applications for non-reserved band FM stations (minus Class D) may be amended 
as a matter of right during the appropriate window filing period pursuant to 
§73.3564(d). For a period of 30 days following the FCC's issuance of a Notice 
of Tenderability announcing the acceptance of the applications, amendments 
that go to the acceptability or grantability of an application may be filed as 
a matter of right. Subsequent amendments prior to designation for hearing or 
grant will be considered only upon a showing of good cause for late filing or 
pursuant to §1.65 or §73.3514. Unauthorized or untimely amendments are 
subject to return by the FCC's staff without consideration. However, an 
amendment to a non~reserved band application will not be accepted after the 
close of the appropriate filing window if the effect of such amendment is to 
alter the proposed facility's coverage area so as to produce a conflict with 
an applicant who files subsequent to the initial applicant but prior to the 
amendment application. Similarly, an applicant subject to “first come/first 
serve" processing will not be permitted to amend its application and retain 
filing priority if the result of such amendment is to alter the facility's 
coverage area so as to produce a conflict with an applicant who files 
subsequent to the initial applicant but prior to the amendment. 


k * * * * 


21 


4. §73.203 is amended to read as follows: 


§73.203 Availability of channels. 


Applications may be filed to construct FM broadcast stations only at the 
communities and on the channels contained in the Table of Allotments 
(873.202(b)). Applications that fail to comply with this requirement, whether 
or not accompanied by a petition to amend the Table, will not be accepted for 


tender. 


22 


APPENDIX B 


To be included with FCC Form 301, Application to Construct or Make Changes in 
an Existing Commercial Broadcast Station. 


CERTIFICATION OF SITE AVAILABILITY 


l. The applicant certifies that it has reasonable assurance in good 
faith that the site or structure proposed in Items 1 and/or 2, Section V-G, 
FCC Form 301, as the location of its transmitting antenna, will he available 
to the applicant for applicant's intended purpose. 


YES NO 


poena 


If no, explain fully: 


2. If reasonable assurance is not based on applicant's ownership of 
the proposed site or structure, applicant certifies that it has obtained such 
reasonable assurance by contacting the owner or person possessing control of 
the site or structure. 


( ) 
Name of Person Contacted Telephone Number 
Person contacted (check one): 
Owner Qmer's Agent Other (specify) 


Applicant's Signature : Date 


qT. 


II. 


23 


APPENDIX C 


Final Regulatory Flexibility Analysis 
Need for and Purpose of Rule 


Our experience indicates that the current cut-off procedures for the 
acceptance of competing applications for commercial full service FM and 
TV stations delay service to the public and disrupt the processing of the 
initial application. The filing of speculative and anticompetitive, 
delaying applications often precipitate costly and unnecessary 
comparative hearings, Also, current modification procedures lack 
sufficient certainty and, as a result, may be wasteful of the 
Commission's and applicants’ resources. 


The purposes of the rule changes adopted herein are to limit applications 
to those seriously interested in providing better service and to provide 
more certainty within the processing system. 


Flexibility Issues Raised in the Comments 


The most significant regulatory flexibility issue raised in the comments 
concerns the duration of the window filing period. Several commenters 
maintained that only well-financed, established entities would be able to 
respond within the proposed 45 day window and therefore the system would 
particularly disadvantage minority groups and small businesses. However, 
under the new rules, a slightly longer filing period will be provided 
than under the current procedures. (See paras 29.) In addition to a 
slightly longer filing period, small business groups and minorities 
should benefit from the expected reduction of speculative and dilatory 
applications. These filings entail processing delays and often result in 
costly and unnecessary comparative hearings that disadvantage sroups with 
funding limitations. 


Iti. Significant Alternatives Considered But Not Adopted 


The only significant alternative considered but not adopted was the 
implementation of an extended window filing period. Since the new 
processing procedures will allow for a longer period to prepare filings 
than does the current system, further lengthening the filing window 
period appeared unwarranted, particularly since such action would 
contravene the important Commission goal of expediting service to the 
public. 


24 


FEDERAL COMMUNICATIONS COMMISSION 
1919 M STREET N.W. 
WASHINGTON, D.C. 20554 


News media information 202/254-7674, Recorded listing of releases and texts 202/632-0002. 
APPENDIX D 


STATEMENT OF NEW POLICY REGARDING COMMERCIAL FM APPLICATIONS THAT 
ARE NOL SUBSTANTIALLY COMPLETE OR ARE OTHERWISE DEFECTIVE 


AS part of our effort to expedite applications in conjunction with the 
implementation of the new “window" and "first come, first serve” processing 
procedures (Report and Order in MM Docket 84-750, Adopted March 14, 1985), 
we are adopting a new policy with respect to the definition and treatment of 
applications that are defective or not substantially complete when filed. 1/ 


Expedition of processing in the face of the possibility of a iarge increase 
in commercial FH applications compels us to shift to the beginning of the 
process some of the application checks previously made later in the process. 
This shift may weil result in a loss of filing status for a returned 
appiication that it otherwise would have retained under the previous 
processing procedures. Such an outcome cannot be avoided if we are to 
achieve the benefits of the new window and first come, first serve 
processing procedures. 


At the time an application for a commercial FH station or for a modification 
to an existing commercial FM station is tendered and before an application 
ceference number is assigned, the application wiil be given a thorough 
initiai review to determine if it is substantially complete. Although ali 
applicable elements of Form 301 are examined by the Commission staff in the 
course of processing a construction“permit application, certain items are 
much more critical than others. Without them, processing simply cannot 
commence. A substantially complete application, one that the Commission 
deems in condition or sufficient for tender, must meet ail of the following 
requirements. 


l. The applicant's name and address must be provided. Failure of an 
applicant to do so renders it impossibie for the processing staff: 


a. to communicate with the applicant concerning the contents of 
the appiication; and 


b. to discern and resoive issues relating to the applicant's 
identity, e-g., multiple-ownership and alien~interest 
questions. 


i/ This policy applies only to commercial FH appiicants. AM applicants 
and non-commercial FM appiicants are stiil subject to the policy set out 
in our Pubiic Notice of August 2, 1964, TV applicants remain subject to 
appiicabie case law. 


25 


in recent years, the Commission has reduced the amount of 
information required to be provided in applying for a construction 
permit and has accordingly simplified Form 301. Applicants are 
now pecmitted to make certifications of various types instead of 
having to provide evidentiary showings. Having relieved 
applicants of the need to make such showings, the Commission 
attaches considerable importance to the certifications that take 
their place. Accordingly, certifications in the following areas 
are crucial in the absence of full showings. 


as Compiiance with 47 U.S.C. ¥310(b). An application which 
violates the alien~interest provisions of the Communications 
Act is statutorily ungrantabie. Failure to respond to the 
question by which certification of compiiance is invited 
renders the application so fundamentally defective chat 
further processing is unwarranted. 


b. Financiai ability to construct. The Commission authorizes 
mew or changed facilities with the expectation that such wili be 
built quickiy and that service wiil be expeditiously provided 
via those facilities to the public. It is pointless to yrant 
an authorization of facilities that cannot be buiit. Tt is 
ilkewise pointiess to process an application where a response 
to certification of financial abiiity to construct is not 
provided. 


Ce Compliance with the iocal pubiic notice provisions of 4/ 
C.F.R. 973.3500. it is important that ilocal public notice 
occur. An informed iocai popuiace can bring to the 
Commission's attention information about the appiicant or the 
facliity proposal that might otherwise remain undetected. 
Thus, where local public notice 1s required, an applicant who 
faiis to respond to the appropriate item of Form 301 wiii 
have its application retucned as not sufficient for tender. 


d. Site availability. The Commission does not require of 
applicants absoiute certainty of site availability, but 
cather reasonabie assurance. An application specifying an 
unavailabie site per se frustrates the Commission's stated 
goa. of expeditious introduction of service. Such a filing 
requires an amendment specifying a site change before grant 
or a further appiication for construction permit modification 
after grant. To avoid vacuous and sequential filangs, che 
Commissioun has imposed a requirement of site~availabilary 
certification which includes the name and address of the site 
owner or his agent. Failure of an appilcanc to provide the 


26 


requisite certification in the form set forth in Appendix B 
of the Report and Order in Docket 84-750, supra, will result 
in the application being deemed not substantiaily complete. 


Questions 6 and 8 of Section II, Form 301 deai with matters 
crucial to multiple~ownership determinations. In response to these 
questions, applicants are to indicate whether or not they or their 
relatives (immediate family) have any other pending applications or 
broadcast interests. If the answer to either question is 
positive, explanatory exhibits must be provided. Leaving these 
questions unanswered, as a practical matter, makes it impossible for 
the processing staff to begin a muitiple-ownership analysis. In 
light of our expressed policy dealing with the filing of multiple 
applications (see Second Report and Order in Docket 84-231, FCC 
85-124, Adopted March 14, 1985 and Released April 12, 1985), 
failure to respond prevents the staff from beginning its ownership 
analysis and thus renders the applicant's filing not substantially 
complete. 


Compliance with the Commission's technical rules is evaluated in 
the course of an acceptability study. Certain engineering data 
must be present for such a technical acceptability study to be 
made. The absence of one or more elements of those data, listed 
below, prevents a determination of acceptability and thus renders 


‚the application not substantially complete. 


ae The geographic coordinates, to the nearest second, of the 
proposed transmitter site must be provided. Absence of these 
data makes it impossible to determine the distances from the 
proposed site to other proposed or existing broadcast 
facilities and to the community of License. In the 
colamerciail FM service, spacing determines acceptability of an 
application where mutual exclusivity exists with respect to a 
given allocation, see Trend Broadcasting, Inc., 18 FCC 2d 749 
(1969), and determines when mutual exclusivity exists between 
applicants for or permittees of different allocations. The 
geographic location also determines whether protection must 
be afforded to Commission monitoring facilities and to radio 
quiet zones (see 47 C.F.R. §73.1030), marks the center of the 
“bianketing” area (see 47 C.F.R. 973.315), and is fundamental 
to analysis of a proposal's environmentai effects and 
electromagnetic effects on other, nearby communications 
facilities. 


b. A transmitter site map as described in Form 301, Section V-B, 
teem 13, and in our Public Notice, Mimeo 3693, released April 
5, 1935. Such a map allows the staff to verify the 
coordinates of the proposed site, the presence of other, 


27 


nearby communications facilities and of obstructing terrain 
features (see 47 C.F.R. 873.315), and the ground elevation of 
the transmitter site. The last parameter has a key infiuence 
on important features of the antenna installation~~radiat ion~ 
center. heights above ground and mean sea level, from which, 
with other data, antenna height above average terrain (HAAT) 
is derived. 


The channel number and community of the allocation must be 
supplied. Since the commercial FM allocation system is 
organized on the basis of a Table comprising numbered 
channels and targeted communities, any evaluation of an 
application must consider these fundamental items. 


Effective Radiated Power must be specified. Our technical 
rules prescribe minimum and maximum permissible power levels. 
Application processing includes a determination that proposed 
operating power falls within the range defined for the 
particular class of station occupying or intended to occupy 
the allocation. Certain allocations have limitations imposed 
on ERP, as do some stations authorized prior to implementation 
of the Table Method of Allocations. International agreements 
also influence permissible ERP levels in border areas. The 
operating power is so basic a parameter of a broadcast 
facility that it simply must be specified. Accordingly, its 
absence will render an application not substantially 
complete. 


Aiso necessary are the antenna heights above average terrain, 
above ground levei, and above mean sea level. These three 
are interrelated and must be specified consistently, as is 
the case with all other crucial engineering parameters. 
Antenna height is as elemental a facility parameter as is 
ERP. It also is subject to permissible-range vaiues as a 
function of station class and, with ERP, determines the coverage 
area of a facility for a given signal strength. Antenna 
height is also limited in certain cases by international 
treaty or by allocation constraints. Antenna height and ERP 
are also used to determine adverse potential to radio quiet 
zones, adjacent and co-channel "grandfathered" stations, and 
to FCC monitoring facilities. Antenna height above ground 
affects the environmental and aerial~navigation aspects of a 
facility proposal. Clearly, the various antenna heights are 
employed in a number of processing evaluations by the staff. 
Their absence, or the absence of any one of them, renders the 
application not substantially complete. 


28 


£. An answer to Item 7, Section V-B must be provided, as whether or 
not a directional antenna is proposed is a fundamental issue. 
If a positive response is given, all data specified in 47 
C.F.R, §73.316(d) must be included in an accompanying 
engineering exhibit. Without this information, the 
processing staff cannot determine the proper location of 
signal-strength contours, whether city-grade coverage is 
provided as required, whether adequate protection to 
short~spaced stations is to be given, and whether or not the 
proposed directional. response complies with our technical 
rules and appears to be stable. 


Be A map or maps satisfying the requirements of Item 10, Section 
V-B and clearly and legibly showing the proposed 60 and 70 
dBu contours and the legal boundaries of the community of 
license must be provided. Such maps permit ascertainment of 
compliance with city~grade requirements and permit 
verification of signal-strength contour predictions. They 
are also employed in determining comparative levels of 
proposed service. 


h. Section V-G must be provided as part of any Form 301 
application proposing construction of a new facility or any. 
change in transmitter site or antenna~structure height to 
existing facilities. In accord with our existing procedure, 
for side~mounting proposals involving an existing support 
structure, Section V-G shall show the application's purpose 
as, "Alteration of existing antenna structure." The 
"Facilities Requested" portion shall contain a description of 
the side~mounting proposal. Section V-G will be accompanied 
by a tower-sketch exhibit as required by Item 6. 


Further, because of the critical importance of the applicant's certification 
of the correctness of the data contained in the appiication as of the date 
of filing, unsigned applications will not be accepted for tender. 


If any of the above information is missing, the application will be returned 
as not sufficient for tender. If any of the above information is present 
but, on the face of the application, visibly incorrect or inconsistent, the 
application will be treated in accordance with the following guidelines. If 
the needed information can be derived or the discrepancy resolved, 
confidentiy and reliably, drawing on the application as a whole, such defect 
will not render the application not sufficient for tender. However, if the 
critical data cannot be derived or the inconsistency resolved within the 
confines of the application and with a high degree of confidence, the 
presence of the clearly void data will be treated as functionally equivalent 
to the absence of such data. In such instances, the defective application 
will be deemed not sufficient for tender. If the application is returned 


29 


during the imitial check as not sufficient for tender, we will not permit 
the applicant to remedy the defect and have its resubmitted application 
accepted nunc pro tune in order to be grouped with other applications filed 
by a window closing date or in order to be considered first filed when a 
window does not apply. 


Where an application is timely filed within and in response to a filing 
window, at the initial screening we will consider the application as 
originally filed, together with any amendments filed within the window 
period. Where "first come, first serve" processing rules apply, the 
application only as originally filed will be considered. If an applicant 
discovers that its "first come" application is not sufficient for tender, it 
must file a new, corrected application (and request return of its earlier 
application) to cure the tenderability defect. Nunc pro tunc treatment will 
not be afforded in such cases. 


Tf any of the defects listed above are overlooked during the initial review 
and are found later in the process, the application wili be returned as 
inadvertently accepted for tender and, if resubmitted, will not be accepted 
nunc pro tunc. Return of the application will void the application 
reference number inadvertently assigned and whatever rights of tender might 
have been associated with it. 


An application found to be sufficient for tender will be studied to 

determine its acceptability for filing, that is, to determine whether it is in 
compiiance with applicable Commission rules. If it is found acceptable for 
filing, it wili be inciuded in a Public Notice of Acceptance. If found to 

be unacceptable for filing, it wili be returned and will not be accepted 
later on a nunc pro tune basis. 


If an application is accepted for filing but is subsequently found not to be 
grantable, the applicant, if not mutually exclusive with other applicants, 
will be given one opportunity to correct the application. If the acceptable 
but not grantable application is mutually exciusive, an appropriate issue 
will be specified in the Hearing Designation Order, or a post~designation 
amendment, if appropriate, will be required.