Report No. DC-2693         ACTION IN DOCKET CASE          December 15, 1994

         FCC PROPOSES NEW POLICIES AND RULES TO INCREASE MINORITY
                     OWNERSHIP OF MASS MEDIA FACILITIES
                    (MM DOCKET NOS. 94-149 AND 91-140) 

     As part of its continuing effort to create opportunities for
all segments of society to participate in the communications
industry, the Commission has initiated a proceeding to examine
and evaluate its minority ownership policies and to explore the
need for incentives to increase female ownership of mass media
facilities.  The Commission said it was particularly interested
in increasing access to capital because lack of access to capital
is a critical entry barrier.  

     The Commission discussed specific mechanisms intended to
increase opportunities for minority and female ownership of mass
media facilities, and solicited suggestions for other ways to
further this goal.  Specifically, the Commission sought comment
on ways to refine an earlier proposal to create an "incubator"
program.  An "incubator" program refers to an arrangement whereby
existing mass media operators share their talent, experience and
financial resources with minorities seeking to enter the mass
media industry in exchange for regulatory concessions such as
relief from certain multiple ownership restrictions.  The
Commission proposed that an acceptable incubator program include
at least three elements:  1) substantial financial assistance; 2)
operational assistance, such as technical advice or assistance
with station operations and management; and 3) training programs. 


      In addition, the Commission asked for comment on whether
and how to modify its ownership attribution rules to encourage
increased investment in minority- and, if necessary, female-
controlled properties.  The FCC invited comment on a proposal
under which if a minority or female individual or entity holds
more than 50 percent of the voting stock of a mass media entity,
then no other interests in the mass media entity would be
attributable, provided that the minority or female individual or
entity holds a minimum level of the equity in the mass media
entity. 



                                  (over)


                                     
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     The Commission also sought comment on ways to expand its
existing tax certificate policy to encourage entities to sell
their mass media holdings to minorities and women, and to make it
easier for minority and female owners to sell their existing
properties in order to purchase more valuable facilities.

     In addition, the Commission sought comment on whether it
should propose legislative changes to Congress that would provide
an investment tax credit for investors in minority- and, if
necessary,  female-controlled entities.  Further, the Commission
proposed permitting these owners to hold interests in up to three
AM and three Class A FM stations in markets with at least 15
stations, provided the audience share of the combined stations
did not exceed 30%.

      Commenters are asked to provide information that would 
assist it in assessing the likely effectiveness of its minority
and female ownership initiatives.  Finally, the Commission sought
comment on whether it should revise its broadcast ownership form
to collect data on the race, ethnicity and gender of owners. 

     The Commission emphasized that commenters are encouraged to
propose additional ways to advance minority and, if necessary,
female ownership of mass media outlets.      

     Action by the Commission December 15, 1994, by Notice of
Proposed Rulemaking (FCC 94-323).  Chairman Hundt, Commissioners
Quello, Barrett, Ness, and Chong, with Commissioner Barrett
issuing a separate statement.

                                   -FCC-

     News Media contact: Patricia A. Chew and Susan Lewis Sallet
at (202) 418-0500.
     Mass Media Bureau contacts: Jane Hinckley Halprin and Diane
Conley at (202) 632-7792.