Goto Section: 73.5006 | 73.5008 | Table of Contents
FCC 73.5007
Revised as of December 4, 2012
Goto Year:2011 |
2013
§ 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: 2011 |
2013
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