Report No. DC95-40         ACTION IN DOCKET CASE             March 14, 1995


       FAYETTE BROADCASTING CORPORATION DENIED REVIEW OF PROPOSAL TO
       CHANGE COMMUNITY OF LICENSE FROM LAGRANGE TO ROLLINGWOOD, TX
                          (MM DOCKET NO. 89-459)

     The Commission has denied Fayette Broadcasting Corporation
review of its proposed substitution of Channel 285C2 for Channel
285A and Reallotment of the channel to Rollingwood, TX.  Fayette
is the licensee of station KBUK, Channel 285A, LaGrange, TX.

     The initial denial of Fayette's proposal was premised on the
fact that the Commission would be removing the only fulltime
aural service licensed to LaGrange and reallotting the channel to
a community within the Austin Urbanized Area.

     In its application for review, Fayette argued that FCC staff
reached the wrong conclusion when it compared the available
transmission and reception services for LaGrange and Rollingwood,
and minimized the significance of the continuing local service to
LaGrange by commonly owned, 250-watt, daytime-only Am station
KVLG.  Fayette also argued that FCC staff "erroneously
downplayed" the resulting net service gain from the proposed
reallotment and the absence of alternatives to improve the
facilities of Station KBUK.  Also, the fact that Rollingwood is
in the Austin Urbanized Areas is not dispositive, according to
Fayette.  Finally, Fayette contended that FCC staff erred in not
considering the financial straits of Station KBUK as a public
interest consideration.

     Denying review, the Commission stated that Fayette's
proposal to remove a service from LaGrange to a community within
the Austin Urbanized Area was not in the public interest. 
Although LaGrange would continue to receive service from at least
five stations and that the proposed reallotment to Rollingwood
would result in a net service gain of 712,919 persons, the
Commission noted that the Rollingwood area receives service from
approximately 20 stations and the population gain is attributable
to the fact that Rollingwood is a suburb of Austin. 


                                  (over)




                                    -2-

     Since all communities within the Austin Urbanized Area
receive a wide-range of service and an additional service to this
Urbanized Area at the expense of the second local and only
fulltime service to LaGrange cannot be justified as a
preferential arrangement of allotments under Community of License
or Section 307(b) of the Communications Act.  

     Finally, with respect to Fayette's claims of financial
hardship, the Commission believes that any new criterion, such as
degree of hardship and any other relevant consideration, should
be established in the course of a rulemaking proceeding.  The
Commission stated that the generally greater advertising revenues
available in more urbanized areas would, were it to adopt a
policy of considering financial hardship, consistently provide a
rationale for moving stations to such areas.  The Commission
stated further that given the concern underlying Section 307(b)
of the Act, that service not be clustered in urban areas to the
detriment of more rural areas, the Commission would be
particularly concerned that any consideration of financial
hardship not promote undesirable results.

     Action by the Commission March 8, 1995,  by Memorandum
Opinion and Order (FCC 95-101).  Chairman Hundt, Commissioners
Quello, Barrett, Ness, and Chong.


                                   -FCC-

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