Goto Section: 73.5006 | 73.5008 | Table of Contents
FCC 73.5007
Revised as of October 2, 2015
Goto Year:2014 |
2016
§ 73.5007 Designated entity provisions.
(a) New entrant bidding credit. A winning bidder that qualifies as a “new
entrant” may use a bidding credit to lower the cost of its winning bid on
any broadcast construction permit. Any winning bidder claiming new entrant
status must have de facto, as well as de jure, control of the entity
utilizing the bidding credit. A thirty-five (35) percent bidding credit will
be given to a winning bidder if it, and/or any individual or entity with an
attributable interest in the winning bidder, have no attributable interest
in any other media of mass communications, as defined in § 73.5008. A
twenty-five (25) percent bidding credit will be given to a winning bidder if
it, and/or any individual or entity with an attributable interest in the
winning bidder, have an attributable interest in no more than three mass
media facilities. No bidding credit will be given if any of the commonly
owned mass media facilities serve the same area as the proposed broadcast or
secondary broadcast station, or if the winning bidder, and/or any individual
or entity with an attributable interest in the winning bidder, have
attributable interests in more than three mass media facilities.
Attributable interests held by a winning bidder in existing low power
television, television translator or FM translator facilities will not be
counted among the bidder's other mass media interests in determining
eligibility for a bidding credit. Eligibility for the new entrant bidding
credit must be specified in an applicant's FCC Form 175 application, and the
new entrant bidding credit specified in an applicant's FCC Form 175
application establishes that applicant's maximum bidding credit eligibility
for that auction. Any post-FCC Form 175 filing change in the applicant's
circumstances underlying its new entrant bidding credit eligibility claim,
or that of any attributable interest-holder in the applicant, must be
reported to the Commission immediately, and no later than five business days
after the change occurs. Any such post-FCC Form 175 filing change may cause
a reduction or elimination of the new entrant bidding credit claimed in the
applicant's FCC Form 175 application, if the change would cause the
applicant not to qualify for the originally claimed new entrant bidding
credit under the eligibility provisions of § 73.5007, and the change occurred
prior to grant of the construction permit to the applicant. Final
determinations regarding new entrant status will be made at the time of long
form construction permit application grant. Applicants whose eligibility is
lost or reduced subsequent to the FCC Form 175 filing must, before a
construction permit will be issued, make such payments as are necessary to
account for the difference between claimed and actual bidding credit
eligibility.
(b) The new entrant bidding credit is not available to a winning bidder if
it, and/or any individual or entity with an attributable interest in the
winning bidder, have an attributable interest in any existing media of mass
communications in the same area as the proposed broadcast or secondary
broadcast facility.
(1) Any existing media of mass communications will be considered in the
“same area” as a proposed broadcast or secondary broadcast facility if the
relevant defined service areas of the existing mass media facilities
partially overlap, or are partially overlapped by, the proposed broadcast or
secondary broadcast facility's relevant contour.
(2) For purposes of determining whether any existing media of mass
communications is in the “same area” as a proposed broadcast or secondary
broadcast facility, the relevant defined service areas of the existing mass
media facilities shall be as follows:
(i) AM broadcast station—principal community contour (see § 73.24(i));
(ii) FM Broadcast station—principal community contour (see § 73.315(a));
(iii) Television broadcast station—television Grade B or equivalent contour
(see § 73.683(a) for analog TV and § 73.622(e) for DTV);
(iv) Cable television system—the franchised community of a cable system; and
(v) Daily newspaper—community of publication.
(3) For purposes of determining whether a proposed broadcast or secondary
broadcast facility is in the “same area” as an existing mass media facility,
the relevant contours of the proposed broadcast or secondary broadcast
facility shall be as follows:
(i) AM broadcast station—principal community contour (see § 73.24(i));
(ii) FM broadcast station—principal community contour (see § 73.315(a));
(iii) FM translator station—predicted, protected contour (see § 74.1204(a) of
this chapter);
(iv) Television broadcast station—television Grade B or equivalent contour
(see § 73.683(a) for analog TV and § 73.622(e) for DTV).
(v) Low power television or television translator station—predicted,
protected contour (see § 74.707(a) of this chapter).
(c) Unjust enrichment. If a licensee or permittee that utilizes a new
entrant bidding credit under this subsection seeks to assign or transfer
control of its license or construction permit to an entity not meeting the
eligibility criteria for the bidding credit, the licensee or permittee must
reimburse the U.S. Government for the amount of the bidding credit, plus
interest based on the rate for ten-year U.S. Treasury obligations applicable
on the date the construction permit was originally granted, as a condition
of Commission approval of the assignment or transfer. If a licensee or
permittee that utilizes a new entrant bidding credit seeks to assign or
transfer control of a license or construction permit to an entity that is
eligible for a lower bidding credit, the difference between the bidding
credit obtained by the assigning party and the bidding credit for which the
acquiring party would qualify, plus interest based on the rate for ten-year
U.S. Treasury obligations applicable on the date the construction permit was
originally granted, must be paid to the U.S. Government as a condition of
Commission approval of the assignment or transfer. The amount of the
reimbursement payments will be reduced over time. An assignment or transfer
in the first two years after issuance of the construction permit to the
winning bidder will result in a forfeiture of one hundred (100) percent of
the value of the bidding credit; during year three, of seventy-five (75)
percent of the value of the bidding credit; in year four, of fifty (50)
percent; in year five, twenty-five (25) percent; and thereafter, no payment.
If a licensee or permittee who utilized a new entrant bidding credit in
obtaining a broadcast license or construction permit acquires within this
five-year reimbursement period an additional broadcast facility or
facilities, such that the licensee or permittee would not have been eligible
for the new entrant credit, the licensee or permittee will generally not be
required to reimburse the U.S. Government for the amount of the bidding
credit.
Note 1 to § 73.5007: For purposes of paragraph (b)(3)(ii) of this section,
the contour of the proposed new FM broadcast station is based on the maximum
class facilities at the FM allotment site, which is defined as the perfectly
circular standard 70 dBu contour distance for the class of station.
[ 64 FR 24526 , May 7, 1999, as amended at 68 FR 46358 , Aug. 5, 2003; 69 FR 72045 , Dec. 10, 2004; 75 FR 9807 , Mar. 4, 2010]
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Goto Section: 73.5006 | 73.5008
Goto Year: 2014 |
2016
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