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(2) amends application filing  xprocedures for the broadcast services to complement the competitive bidding process; (3) determines to  xutilize competitive bidding to resolve pending mutually exclusive broadcast applications; (4) determines  xthat the Commission is statutorily required to auction competing Instructional Television Fixed Service  xL(ITFS) applications; and (5) establishes procedures for resolving a small number of pending comparative  xVrenewal cases, which cannot be resolved by auction under the Commission's revised competitive bidding  S( xauthority. The First Report and Order adopts a tiered "new entrant" bidding credit for entities with  xcontrolling interests in either no, or less than four, other media entities so as to further the goals of the  S?( xVdesignated entity provisions of Section 309(j). As noted in the First Report and Order, the Commission  xintends to continue its review of the barriers to entry or growth that may exist for small, minority and  xwomenowned businesses in broadcasting, and to make adjustments to its designated entity provisions, as appropriate, in light of these studies.  SA( II. Significant Issues Raised by the Public in Response to the Initial Analysis:X` hp x (#%'0*,.8135@8:mutually exclusive with such renewal applications. We estimate that there are approximately 9 initial  xlicense applications that are mutually exclusive with 8 pending renewal applications. This includes approximately 15 television applicants and 2 radio applicants.  S(  Sh(IV. Summary of Projected Reporting, Recordkeeping and Other Compliance Requirements:   S(  The First Report and Order adopts a number of rules that include reporting, recordkeeping, and  xVcompliance requirements. These requirements will apply to all applicants subject to the new competitive  S ( xjbidding procedures, as more fully detailed in the First Report and Order (referred to in this section more  Sk ( xgenerally as "applicants"). We find that these requirements are the minimum needed to ensure the integrity and efficiency of broadcast licensing and to serve the public interest, as reflected in this record.  S (  Applicants will be required to submit a shortform application (FCC Form 175) prior to any  xauction. Only winning bidders will need to file complete longforms (FCC Form 301 for AM, FM and  xltelevision stations, FCC Form 346 for LPTV and television translators, or FCC Form 349 for FM  xtranslators). Specifically, in response to a public notice announcing a window for the filing of broadcast  xand/or secondary broadcast applications for new stations and for major changes in existing facilities,  S( xapplicants will be required to file a shortform application, along with any engineering data necessary to determine mutual exclusivity in a particular service.   With regard to the FM service, applicants will have the opportunity to submit a set of preferred  xsite coordinates as a supplement to the FCC Form 175. FM applicants are not required to submit a set  xof preferred site coordinates, and may simply indicate the vacant allotment in the FM Table of Allotments  xfupon which they intend to bid. No engineering data will be required to be submitted with FM service shortform applications.   Applicants for AM stations, LPTV stations, and television and FM translators will be required to  xfile shortform applications specifying a channel or frequency upon which the applicant may operate in  xaccordance with the Commission's existing interference standards for these services, which we are not  xaltering in any way. To determine which AM, LPTV, and television and FM translator applications are  xmutually exclusive for auction purposes, we will require applicants for these services to file, in addition  S ( xto their shortform applications, the engineering data contained in the pertinent FCC form (i.e., FCC Form  xH301, FCC Form 346 or FCC Form 349). Similarly, in those rare instances in which analog television  x>licensees file major modification applications (such as a change in the community of license), we will  xrequire that such applicants file both an FCC Form 175 and the engineering data contained in the FCC Form 301.   Applicants for broadcast auctions will be required to follow the general auction rules, 47 C.F.R.  1.2105, with regard to completion of the short form and exhibits to be submitted with the short form.  S@#(  Applicants will be required to identify on their shortform applications any parties with whom they  xhave entered into any consortium arrangements, joint ventures, partnerships or other agreements or  S$( x understandings which relate in any way to the competitive bidding process.h"$Ѓ {OB'(ԍ See 47 C.F.R.  1.2105(a)(2)(viii); 1.2105(c)(1).h Applicants also will be"$ Z",l(l(,,#"  x8required to certify on their shortform applications that they have not entered into any explicit or implicit  xfagreements, arrangements or understandings of any kind with any parties, other than those identified,  xregarding the amount of their bids, bidding strategies, or the particular construction permits on which they  Sg( xwill or will not bid.T#gЃ {O(ԍ See 47 C.F.R.  1.2105(a)(2)(ix).T After shortform applications are filed and prior to the time that the winning bidder  xhas made its required down payment, all bidders will be prohibited from cooperating, collaborating,  xLdiscussing or disclosing in any manner the substance of their bids or bidding strategies with other bidders  xthat have applied to bid in the same geographic license area, unless such bidders are members of a bidding  S(consortium or other joint bidding arrangement identified on the bidder's shortform application.M$ZЃ {O (ԍ See 47 C.F.R.  1.2105(c).M  Sh(  S5(  Consistent with the Commission's general Part 1 auction rules,L%5Ѓ {O (ԍ See 47 C.F.R. 1.2105(a).L all applicants for broadcast  xLauctions must file their FCC Form 175 applications electronically beginning January 1, 1999. Applicants  xDfor the AM, LPTV, and television and FM translator services, who, as noted above, must submit  xengineering information with their short forms, will be required to file the engineering section of the electronic versions of the FCC Forms 301, 346 and 349, which are currently being developed.  Q6 (  S (  6A winning bidder that meets its down payment obligations in a timely manner will be required  xjto file an appropriate longform application for each construction permit for which it was the high bidder.  S ( xApplicants will be required to submit any applicable exhibits required by the general Part 1 auction rules,&" ~Ѓ {O( xԍ See 47 C.F.R.  1.2107(d) (concerning bidding consortia or joint bidding arrangements); 1.2110(i)  x(concerning designated entity status); and 1.2112(a) & (b) (concerning disclosure of ownership and real party in  xinterest information, and disclosure of gross revenue information for applicants claiming any small business special measure).  xand should be filed pursuant to the rules governing the relevant broadcast service and according to any  S7(procedures set out by public notice.  S(  Applicants may be subject to upfront payments, minimum opening bids and/or reserve prices in  xorder to participate in broadcast service auctions. The Mass Media Bureau in conjunction with the  xWireless Telecommunications Bureau shall seek public comment on and, as appropriate, shall establish  S8(these mechanisms for each auction, or group of auctions, in the broadcast services.  S(  Following the close of bidding in an auction, the Commission will issue a public notice  xannouncing the close of the auction and identifying the winning bidders. Winning bidders will be required  Sl( xto submit a down payment.S'lh Ѓ {Ot!(ԍ See 47 C.F.R.  1.2107(a) & (b).S Specifically, within 10 business days of the public notice announcing the  S9( x8close of the auction, winning bidders will be required to supplement their upfront payments with a down  xpayment amount sufficient to bring their total deposits with the Commission up to 20% of their winning  xbids. If the upfront payment already tendered by a winning bidder, after deducting any bid withdrawal  x8payments due, amounts to 20% or more of its winning bid(s), no additional deposit will be required. To  xthe extent that any upfront payment not only covers, but exceeds, the required down payment, the  xLCommission will refund any excess amount after determining that no bid withdrawal payments are owed  xHby the bidder. The down payment will be held by the Commission until the winning bidder has been" ',l(l(,,"  xissued its construction permit and has paid the remaining balance of its winning bid, or until the winning  xbidder is found unqualified to be a permittee or has defaulted, in which case it will be returned, less any  S(applicable default payments.  S4(  Auctions winners will be required to pay the balance of their winning bids in a lump sum within  x10 business days following the release of a public notice announcing that their construction permits are  x$ready to be granted. If a winning bidder fails to pay the balance of its winning bid in a lump sum by the  xXapplicable deadline as specified by the Commission, it will be allowed to make payment within 10  xVbusiness days after the payment deadline, provided that it also pays a late fee equal to 5% of the amount  S6(due.M(6Ѓ {O (ԍ  See 47 C.F.R.  1.2109(a).M  S(  Broadcast auction participants will be subject to the bid withdrawal, default and disqualification  xBpayments set forth in the general Part 1 auction rules, in instances where high bids are withdrawn during  xthe course of the auction, where winning bids are withdrawn after an auction has closed, and where  S7 (winning bidders fail to submit their longform application, pay their winning bids or are disqualified.Z)7 ZЃ {O1(ԍ See 47 C.F.R.  1.2104(g) & 1.2109.Z   A licensee, or holder of a construction permit, who utilized a new entrant bidding credit will be  xrequired to reimburse the government for the amount of the bidding credit, plus interest, as a condition  xfor Commission approval of the assignment or transfer of the license or permit to an entity that would not  xhave qualified for the new entrant credit. As provided in the Commission's Part 1 rules, the amount of  S( x.the repayment will be reduced over a fiveyear period.W*Ѓ {O(ԍSee 47 C.F.R.  1.2111(d)(2).W A licensee who received a new entrant bidding  x&credit, however, will not be required to repay such bidding credit if it obtains within the fiveyear  x8reimbursement period additional media interests so that it no longer meets the eligibility requirements for the new entrant credit it previously received.  S9(   S( V. Steps Taken to Minimize Significant Economic Impact on Small Entities,  S( and Significant Alternatives Considered:  Sm(  ^Due to the insufficiency of the record in this proceeding, the First Report and Order does not  x~make a final determination regarding the adoption of bidding credits or other special measures to enhance  xRparticipation by various designated entities, including small businesses, in broadcast service and ITFS  S( xzauctions. The First Report and Order does adopt a tiered new entrant bidding credit for entities with  xcontrolling interests in either no, or less than four, other media entities so as to enhance participation by  xVsmall businesses and other designated entities, including small businesses owned by women and minority  x.group members. Following the completion of certain pending evidentiary studies, the Commission may,  xfin a further report and order in this proceeding, adopt additional or alternative bidding credits or other  xmeasures that more directly alleviate any adverse impact on small businesses (including those owned by  xDwomen or by minority group members) of the requirement to participate in an auction to obtain a  xconstruction permit to provide commercial broadcast service. If additional or alternative designated entity  x measures are ultimately adopted, then any such measures will be applicable to the auction of any broadcast and ITFS applications then on file with the Commission.   Moreover, even if further special measures are not ultimately adopted, we believe that some of"! ~*,l(l(,,*!"  S( xthe competitive bidding procedures adopted in this First Report and Order reduce the time and cost of securing commercial broadcast and ITFS licenses to the ultimate benefit of small businesses.  Sh(  hEntities interested in bidding for broadcast station permits will not be required to submit a long  xform application prior to auction. We will require only that a short form application be submitted prior  xto auction, although AM, LPTV, and television and FM translator applicants will be required to submit  xfthe engineering data necessary to make determinations of mutual exclusivity. Requiring only minimal  xinformation in a short form application rather than a more detailed long form application will reduce the  xburden on small entities interested in participating in an auction. These entities (particularly FM applicants  xwho are not required to submit any engineering data with their shortforms) will not be required to expend  xadditional sums to prepare a complete long form application prior to auction. Limiting preauction costs  xwill encourage and facilitate the participation of small entities in the auction and eliminate a potential  S (barrier to entry for these parties.  Sj (   The procedures adopted here further expedite service to the public, thereby reducing the cost to  xsmall entities of participating in these auctions, by limiting our preauction processing to what is necessary  xto determine mutual exclusivity. Similarly, in the case of pending applications, we will defer until after  xthe auction all issues as to a bidder's basic qualifications or the acceptability of its application, whether  xraised in a petition to deny or a motion to enlarge issues, and we will decide such issues only with respect to the auction winner.   Also, as permitted by Section 3008, we have reduced the time for filing petitions to deny to 10  x&days after the long form applications submitted by winning bidders are accepted for filing. Some  x commenters objected to the establishment of a petition to deny period as brief as that allowed under  S9( xSection 3008 (i.e., five days), contending, inter alia, that such a short period is insufficient to evaluate  S( xthe technical proposals and legal information contained in broadcast longform applications.+Ѓ {Oo( xԍ See Comments of KERM, Inc. at 5; TriCounty Broadcasting, Inc. at 5; Communications Technologies, Inc. at 2; Michael Ferrigno at 10; Hatfield & Dawson Consulting Engineers at 3. While  xrecognizing that the Commission relies on petitioners as private attorneys general to assist in overseeing  xthe conduct of applicants and licensees and in the fulfillment of its statutory functions, we also consider  x6expedition of service to the public to be of paramount significance. Accordingly, after careful  x$consideration and in light of Congress' directive in the Budget Act, we found that a shortened petition to  xdeny period of 10 days is appropriate for applications for broadcast and secondary broadcast construction  S(permits obtained through the competitive bidding process.  S(  So(  We have eliminated the requirement that applicants affirmatively certify their financial  x~qualifications and the availability of their proposed tower locations in their applications. This will provide  xHsmall entities with additional flexibility to focus their limited financial resources on participation in the  xauction rather than preparing financial and other documentation and securing a tower location. We believe  xthat the competitive bidding process itself serves to lessen the incentive for insincere application filings  x`and provides a strong stimulus for timely station construction, so as to recapture bidding investments. In  xaddition, we think it unlikely that bidders, who must construct their facilities to recoup the expenditures  xmade in obtaining their construction permits via auction, will have the incentive to participate in and  S (prevail at auction if they lack the financial wherewithal to construct their facilities.   S!(  Sq"(   We recognize that, despite the efficiency of auctions and the resulting reduction in the costs  xlassociated with filing an application, having to participate in an auction may limit the opportunities  xavailable to small businesses, particularly regarding future applications filed in anticipation of the winner" $"+,l(l(,,F#"  x:being selected through a system of competitive bidding. However, except for certain commercial  x broadcast applications filed before July 1, 1997, Section 309(j)(1), as amended by the Budget Act of 1997,  xrequires that the Commission use competitive bidding procedures to award virtually all construction  xpermits for commercial broadcast stations where mutually exclusive applications are filed. After carefully  xconsidering the comments, we determined that auctions are statutorily required to resolve mutually  xexclusive secondary broadcast service applications, as nothing in the statute or in the legislative history  xjreflects an intention to limit Section 309(j)(1) to full power radio and television applications. We advised  xapplicants to be aware that the requirement that competing applications be auctioned did not change the secondary nature of the LPTV and television and FM translator services.   Relying on the fact that the exemption from competitive bidding set forth in Section 309(j)(2) is  S( xexpressly limited to noncommercial educational and public broadcast stations, we also determined that  xtthe exemption does not apply to ITFS, which is a nonbroadcast service. Thus, although we agreed with  xLcommenters that ITFS is similar to noncommercial educational broadcast service and that Section 309(j)  x8may not reflect on its face Congress's intent regarding the treatment of competing ITFS applications, we  x*found that auctions are statutorily required to resolve all pending and future mutually exclusive ITFS  xapplications. However, we will request that Congress amend Section 309(j) so that the statute clearly  xreflects its intent with regard to ITFS. Absent a clear statement from Congress that it means to exempt  xITFS from competitive bidding, we will proceed to auction mutually exclusive ITFS applications. We  xwill not commence ITFS auctions immediately, however, in order to allow sufficient time for us to obtain  S(Congressional guidance.   Auctions are not statutorily required to resolve modification applications, since Section 309(j)(1)  xpexpressly refers to "mutually exclusive applications for . . . any initial license or construction permit."  x Nevertheless, we determined to use competitive bidding to resolve mutually exclusive major modification  x>applications but not mutually exclusive minor modification applications. Although some commenters  S( xpopposed the auctioning of modification applications,,Ѓ {O;( xԍ See, e.g., Comments of Cox Radio, Inc. at 23; Kayo Broadcasting at 14; KM Broadcasting, Inc.; Six Video Broadcast Licensees at 6; Reply Comments of WB Television Network at 12. commenters did not suggest another method of  xresolving mutually exclusive major modification applications that is as efficient as competitive bidding.  x0We will, however, allow applicants who have filed competing major modification applications, or  xcompeting major modification and new applications, to resolve their mutual exclusivity by means of  xengineering solutions or settlement before proceeding to auction. Given the infrequency with which minor  xmodification applications are mutually exclusive and the less significant changes proposed in minor  xmodification applications, we saw less utility to be gained from subjecting minor change applications to  xcompetitive bidding procedures. Thus, in accord with the comments, the parties will be expected to work together to resolve any mutual exclusivities between minor modification applications.   Section 309(l) governs the resolution of approximately 130 pending comparative licensing  xproceedings involving preJuly 1, 1997, applications for new commercial radio or television stations that  xLdid not settle within the 180day waiver period prescribed by Congress. For settlements executed within  xthat period, we waived our settlement rules, including the prohibition against "white knight" settlement  x agreements where a fullmarket settlement was involved. Such a waiver would allow a nonparty to  xreceive the license after paying the pending applicants to settle. We concluded that this "white knight"  S!( xwaiver could not be extended to partial settlements, as some commenters urged,-!"Ѓ {Oe&( xdԍ See Reply Comments of Paxson Communications Corp. at 10; Comments of Marri Broadcasting, L.P. at 24; Dewey Matthew Runnels at 24. because doing so would"!|-,l(l(,, "  xcontravene Section 309(l)(2), which explicitly restricts our discretion regarding persons qualified to participate in a competitive bidding proceeding that involves preJuly 1, 1997 applications.  Sg(  We also concluded that, contrary to certain comments,.gЃ {O( x~ԍ See, e.g., Reply Comments of WB Television Network at 10; Comments of Grace Communications LC at 7. it would not serve the public interest to  xLwaive our settlement rules on our own motion to facilitate settlements among applicants ineligible to take  xadvantage of the statutory 180day settlement period where applicants could settle for more than their  xlegitimate and prudent expenses, or expand the 180day period for applicants who were eligible to take  xadvantage of the statutorilymandated waiver period but did not do so. We noted that Congress had made  xno change to Section 311(c) that would require a substantial relaxation of our settlement rules, and  xpending competing applicants may settle at any time under our existing policies that limit payments.  xMoreover, there was no reason to believe that an additional waiver period would produce settlements in a significant number of the remaining cases.   NBased upon the express language of Section 309(l), we concluded that in cases that did not settle,  xwe have discretion to resolve applications subject to that provision by either auction or comparative  xhearings. Some commenters favored the use of comparative hearings for these pending preJuly 1, 1997  x.cases and expressed concern that the switch to auctions will detrimentally affect the quality of broadcast  xservice. They focused particularly on the impact that auctions will allegedly have in terms of securing  Sj( xservice that is narrowly tailored to the needs of the small, local community./j"Ѓ {O,(ԍ See, e.g., Comments of Wolfgang V. Kurtz at 12; Cromwell Gro up, Inc. at 12. We found that Congress  xitself has made the judgment that auctions are generally preferable to comparative hearings by requiring  xthem for competing commercial broadcast applications filed on or after July 1, 1997. We concluded that,  xby providing us with the discretion to determine whether or not to use auctions in pending preJuly 1st  xcases, Congress intended us to focus on any special circumstances in these cases that would tip the policy  xbalance in favor of comparative hearings, not to revisit the general congressional determination that broadcast auctions serve the public interest.   In exercising this discretion, we concluded that, even for the few preJuly 1, 1997 cases that had  xalready progressed through an Initial Decision by an Administrative Law Judge, auctions will generally  xbe fairer and more expeditious than deciding these pending cases through the comparative hearing process,  xparticularly since the court's invalidation of the key comparative criterion prevents us from deciding any  xof these cases according to the applicants' reasonable expectation when they filed their applications.  xjUnder these circumstances, we disagreed that it would be arbitrary and capricious to ignore the results of  x4the prior hearing. We found that for the Commission's Administrative Law Judges to adjudicate and  x.decide the approximately 130 pending proceedings would take many years while auctions can be carried out much more quickly.  S(  "We rejected arguments raised by commenters that changing the selection process for pending  S( xapplications filed before July 1, 1997 is impermissibly retroactive or otherwise unlawful.0Ѓ {O#( xԍ See, e.g., Comments of Susan M. Bechtel at 68; Lindsay Television, Inc. at 810; Throckmorton Broadcasting, Inc. at 34. We found that  x0none of the preJuly 1, 1997 applicants subject to the new Section 309(l) have a vested right to a  xcomparative hearing that is abridged by our decision to resolve such applications by a system of  xcompetitive bidding. And, in any event, the economic impact of this regulatory change is ameliorated" 0,l(l(,,"  xfsomewhat by the statutory requirement that auctions to decide these pending cases be closed to other participants.   0Based upon the express language of Section 309(l)(2), we found that, where postJune 30, 1997,  xapplications are mutually exclusive with two or more preJuly 1, 1997 applications, we must dismiss them  xand conduct a competitive bidding procedure that is restricted to the preJuly 1, 1997 applications. We  xfrejected arguments by some commenters that the distinction between preJuly 1st and post June 30th  S( xapplications is arbitrary.1Ѓ {O( xtԍ See, e.g., Comments of George S. Flinn at 34; Robert B. Mahaffey at 47. But see Comments of Pappas Telecasting of America at 23. We found that Congress adopted a bright line distinction and that this  xdistinction operates to exclude some applicants but to include others does not make it unlawful.  xMoreover, the practical effect of this bright line distinction will be limited, as we believe that settlement  xagreements have been filed in connection with the small number of cases involving postJune 30th  S(applications mutually exclusive with two or more preJuly 1st applications.  S (   &Except for applications subject to Section 309(l), there is no statutory bar to reopening new filing  x*periods for applications that would be mutually exclusive with pending applications. We agreed with  x~commenters that reopening already closed filing periods would not serve the public interest since it would  xdelay, rather than expedite, the resolution of the pending applications, and would defeat the reasonable  x~expectations of applicants who timely filed longform applications. As in the case of pending applications  x>subject to Section 309(l)(2), restricting the qualified bidders to the pending applicants ameliorates the economic impact on small businesses of having to participate in an auction.  S(   As a matter of fairness to pending applicants, we determined to refund all hearing and certain  xLfiling fees paid by all pending applicants. But we declined the suggestion of various commenters that we  xalso reimburse the legitimate and prudent expenses of pending preJuly 1st applicants subject to the  S8( xcomparative freeze, who either do not participate in the auction or are outbid in the auction.52$8"Ѓ {O( xԍ See, e.g., Comments of United Broadcasters Company at 10; Rio Grande Broadcasting Company at 89; Marri  yO( xBroadcasting, LP at 45; Dewey Matthew Runnels at 45; Howard G. Bill at 45; HeidelbergStone Broadcasting Co.  {O( xat 89; Grass Roots Radio, Inc. at 23; Willsyr Communications, LP at 3233; Roy F. Perkins at 12; Liberty Productions, LP at 34; Columbia FM Limited Partnership at 7. 5 We are  xLaware of no legal authority to make such additional reimbursement and concluded we have no obligation to do so.  Sl(  :We concluded that, consistent with our approach in most of the Commission's previous auctions,  xbroadcast and ITFS applicants should be required to submit upfront payments with their shortform  xapplications prior to auction. We also reserved the right to adopt minimum opening bid and/or reserve  xjprices for each license. Establishing upfront payments, minimum opening bid and/or reserve prices may  x$have a significant economic impact on small businesses interested in applying for commercial broadcast  xand ITFS licenses. However, upfront payments have been required in our general Part 1 auction rules  xsince they were first promulgated, and Congress has directed us to prescribe minimum opening bids or  xreserve prices unless we specifically determine that this will not serve the public interest. While we were  xunpersuaded by generalized assertions that reserve prices or minimum opening bids would contravene the  xpublic interest, we directed the staff to seek comment on, and as appropriate, establish upfront payments,  xopening bids and/or reserve prices for each auction or group auctions, and to consider the issues raised  xfby commenters in this proceeding in formulating proposals regarding upfront payments and minimum opening bids or reserve prices." 2,l(l(,,|"Ԍ  vԙWe adopted our proposal to apply the anticollusion rule to broadcast service auctions. A number  xof commenters opposed this, believing instead that auction applicants should be permitted to conclude  x.settlement agreements following the shortform filing deadline with those applicants with whom they are  Sg( xmutually exclusive.53ZgЃ {O( xԍ See, e.g., Comments of KM Communications, Inc. at 8; Positive Alternative Radio, Inc., et al. at 10;  xThrockmorton Broadcasting, Inc. at 11; Independent Broadcast Consultants, Inc. at 9; National Translator Association at 8.5 We noted that we adopted the anticollusion rule to both prevent and to facilitate  xBthe detection of collusive conduct, thereby enhancing the competitiveness of the auction process and the  xpostauction market structure. We found that the rule has proven effective in the numerous spectrum  S( xauctions conducted to date, and concluded to apply the rule to broadcast auctions. A limited exception  xto the anticollusion rule will, however, allow applicants who have filed either competing major  xBmodification applications, or competing major modification and new applications, to resolve their mutual  xexclusivity by means of engineering solutions or settlements during a limited period after the filing of  S(shortform applications.  S(   For the pending comparative renewal proceedings (which may not be resolved by auction), we  xdetermined that the most equitable and expeditious approach would be simply to permit the renewal  xapplicants and their challengers, within the confines of the generally phrased standard comparative issues,  x to present whatever factors and evidence they believe most appropriate. We found that none of the  S ( x8commenters provided any persuasive arguments against such an approach to comparative hearings if we  S ( xtrejected our alternative twostep procedure.4 Ѓ yO'( xVԍ One commenter did urge that in cases in which the renewal applicant is not awarded a renewal expectancy  {O( xthe Commission should rely on diversification. See Comments of Lawrence Brandt at 23. Another commenter  xrecommended that the Commission resolve these cases on a casebycase basis, considering all comparative criteria  xexcept for integration, and according comparative credit for the incumbent's past record based on the strength of the  {OI(station's performance during the license period. See Reply Comments of Simon T. at 1619.  We acknowledged that comparative renewal hearings tend  xtto be timeconsuming and expensive for both the Commission and the private parties, and to disserve the  xpublic interest by prolonging the period during which a renewal applicant operates under a cloud.  xHowever, we stated that we remain willing, where the circumstances afford assurance that the competing  xapplications were not filed for speculative or other improper purpose, to waive the limitations on payments to dismissing applicants in comparative renewal proceedings.  S8( VI. Report to Congress:  S(  The Commission will send a copy of the First Report and Order, including this FRFA, in a report  S( xto be sent to Congress pursuant to the Small Business Regulatory Enforcement Fairness Act of 1996. See  Sn( x5 U.S.C.  801(a)(1)(A). In addition, the Commission will send a copy of the First Report and Order,  S<( xincluding the FRFA, to  X the Chief Counsel for Advocacy of the Small Business Administration. A copy  S ( xzof the First Report and Order and FRFA (or summaries thereof) will also be published in the Federal  S(Register. See 5 U.S.C.  604(b). "4,l(l(,,<"  S( X   )Ѓ S( Y #&J\  P6Qt&P#Federal Communications Commission`g(#FCC 98194 ă  yx}dddy )#ЃcC1#@B-C-@  Xx(# APPENDIX C ă  S(I. Part 1 of Chapter 1 of Title 47 of the Code of Federal Regulations is amended as follows:  S8( Subpart A General Rules of Practice and Procedure Section 1.65 is amended to read as follows:  S( xh  1.65 Substantial and significant changes in the information furnished by applicants to the  Sp(Commission.  xB(a) Each applicant is responsible for the continuing accuracy and completeness of information furnished  xin a pending application or in Commission proceedings involving a pending application. Whenever the  xzinformation furnished in the pending application is no longer substantially accurate and complete in all  xsignificant respects, the applicant shall as promptly as possible and in any event within 30 days, unless  xjgood cause is shown, amend or request the amendment of his application so as to furnish such additional  x~or corrected information as may be appropriate. Whenever there has been a substantial change as to any  xother matter which may be of decisional significance in a Commission proceeding involving the pending  xapplication, the applicant shall as promptly as possible and in any event within 30 days, unless good cause  xis shown, submit a statement furnishing such additional or corrected information as may be appropriate,  x`which shall be served upon parties of record in accordance with  1.47. Where the matter is before any  xcourt for review, statements and requests to amend shall in addition be served upon the Commission's  xGeneral Counsel. For the purposes of this section, an application is "pending" before the Commission  xfrom the time it is accepted for filing by the Commission until a Commission grant or denial of the application is no longer subject to reconsideration by the Commission or to review by any court.  x*(b) Applications in ITFS and broadcast services subject to competitive bidding will be subject to the provisions of  73.5002, 73.3522 and 1.2105(b) regarding the modification of their applications. n* * * * *  Sx(  SP( Subpart L Random Selection Procedures for Mass Media Services Section 1.1601 is amended to read as follows:  S(  1.1601 Scope .  xBThe provisions of this subpart, and the provisions referenced herein, shall apply to applications for initial  xlicenses or construction permits or for major changes in the facilities of authorized stations in the following services: (a) [Reserved] (b) [Reserved]  SH$(  1.1604 Postselection hearings.  x(a) Following the random selection, the Commission shall announce the "tentative selectee" and, where permitted by  73.3584 invite Petitions to Deny its application. (1) [Removed] "(4, * *,,%"Ԍn* * * * *  S(II. Part 73 of Chapter 1 of Title 47 of the Code of Federal Regulations is amended as follows: Section 73.1010 is amended to read as follows:  S(  73.1010 Cross reference to rules in other parts.   S( xt Certain rules applicable to broadcast services, some of which are also applicable to other services, are set forth in the following Parts of the FCC Rules and Regulations. (a) Part 1, "Practice and Procedure." ****** (8) Subpart Q, "Competitive Bidding Proceedings" ( 1.21011.2112). Section 73.3500 is amended to read as follows:  S(  73.3500 Application and report forms.  S( Following are the FCC broadcast application and report forms, listed by number.  Sh(Form number` `  ,hhhTitle  S(175 . . . . .` `  ,h Application to Participate in an FCC Auction  xx  H(#(# Section 73.3522 is amended to read as follows:  SP(  73.3522 Amendment of applications. (a) Broadcast services subject to competitive bidding.   d(1) Applicants in all broadcast services subject to competitive bidding will be subject to the provisions of  73.5002 and 1.2105(b) regarding the modification of their shortform applications.   (2) Subject to the provision of  73.5005, if it is determined that a long form application submitted  xby a winning bidder or a nonmutually exclusive applicant for a new station or a major change in an  xexisting station in all broadcast services subject to competitive bidding is substantially complete, but  xcontains any defect, omission, or inconsistency, a deficiency letter will be issued affording the applicant  xan opportunity to correct the defect, omission or inconsistency. Amendments may be filed pursuant to  xthe deficiency letter curing any defect, omission or inconsistency identified by the Commission, or to make  xminor modifications to the application, or pursuant to  1.65. Such amendments should be filed in  xaccordance with  73.3513. If a petition to deny has been filed, the amendment shall be served on the petitioner.   (3) Subject to the provisions of  73.3571, 73.3572 and 73.3573, deficiencies, omissions or  xRinconsistencies in longform applications may not be cured by major amendment. The filing of major  xamendments to longform applications is not permitted. An application will be considered to be newly filed if it is amended by a major amendment."&4,l(l(,,#"Ԍ  n(4) Paragraph (a) of this section is not applicable to applications for minor modifications of facilities in the nonreserved FM broadcast service, nor to any application for a reserved band FM station.   @C-C-@(b) Reserved band FM and reserved noncommercial educational television stations.   (1) Predesignation amendments. Subject to the provisions of  73.3525, 73.3572, 73.3573 and  x873.3580, mutually exclusive broadcast applications for reserved band FM stations and television stations  xon a reserved channel may be amended as a matter of right by the date specified (not less than 30 days  xafter issuance) in the FCC's Public Notice announcing the acceptance for filing of the last-filed mutually  xBexclusive application. Subsequent amendments prior to designation of the proceeding for hearing will be  xconsidered 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.   &(2) Postdesignation amendments. (i) Except as provided in paragraph (ii) of this section, requests  x to amend an application after it has been designated for hearing will be considered only upon written  xpetition properly served upon the parties of record in accordance with  1.47 and, where applicable,  x8compliance with the provisions of  73.3525, and will be considered only upon a showing of good cause  xfor late filing. In the case of requests to amend the engineering proposal (other than to make changes with  xrespect to the type of equipment specified), good cause will be considered to have been shown only if, in addition to the usual good cause consideration, it is demonstrated:   :X(A) That the amendment is necessitated by events which the applicant could not reasonably have   foreseen (e.g., notification of a new foreign station or loss of transmitter site by condemnation); and(#   :X(B) That the amendment does not require an enlargement of issues or the addition of new parties to the proceeding.(#  x`(ii) In comparative broadcast cases (including comparative renewal proceedings), amendments relating to  xissues first raised in the designation order may be filed as a matter of right within 30 days after that Order  xor a summary thereof is published in the Federal Register, or by a date certain to be specified in the  x*Order. (iii) Notwithstanding the provisions of paragraphs (b)(2)(i) (ii) of this section, and subject to  xcompliance with the provisions of  73.3525, a petition for leave to amend may be granted, provided it  xRis requested that the application as amended be removed from the hearing docket and returned to the  Sx(processing line.  SP((c) Minor modifications of facilities in the nonreserved FM broadcast service. xx    (1) Subject to the provisions of  73.3525, 73.3573, and 73.3580, for a period of 30 days  xfollowing the FCC's issuance of a Public Notice announcing the tender of an application for minor  xmodification of a nonreserved band FM station, (other than Class D stations), minor amendments may be filed as a matter of right.   (2) For applications received on or after August 7, 1992, an applicant whose application is found  xHto meet minimum filing requirements, but nevertheless is not complete and acceptable, shall have the  xopportunity during the period specified in the FCC staff's deficiency letter to correct all deficiencies in  xthe tenderability and acceptability of the underlying application, including any deficiency not specifically  xidentified by the staff. [For minimum filing requirements see  73.3564(a). Examples of tender defects  xappear at 50 FR 19936 at 19945-46 (May 13, 1985), reprinted as Appendix D, Report and Order, MM  xLDocket No. 91- 347, 7 FCC Rcd 5074, 5083-88 (1992). For examples of acceptance defects, see 49 FR  x47331.] Prior to the end of the period specified in the deficiency letter, a submission seeking to correct  xa tender and/or acceptance defect in an application meeting minimum filing requirements will be treated  xras an amendment for good cause if it would successfully and directly correct the defect. Other  xtamendments submitted prior to grant will be considered only upon a showing of good cause for late filing or pursuant to  1.65 or  73.3514. "&4,l(l(,,#"Ԍ  (3) Unauthorized or untimely amendments are subject to return by the Commission without  xconsideration. However, an amendment to a non-reserved band application will not be accepted if the  x~effect of such amendment is to alter the proposed facility's coverage area so as to produce a conflict with  xan applicant who files subsequent to the initial applicant but prior to the amendment application. Similarly,  xan applicant subject to "first come/first serve" processing will not be permitted to amend its application  xfand retain filing priority if the result of such amendment is to alter the facility's coverage area so as to  xproduce a conflict with an applicant which files subsequent to the initial applicant but prior to the amendment.  xNote 1: When two or more broadcast applications are tendered for filing which are mutually exclusive  xwith each other but not in conflict with any previously filed applications which have been accepted for  xfiling, the FCC, where appropriate, will announce acceptance of the earliest tendered application and place  xthe later filed application or applications on a subsequent public notice of acceptance for filing in order to establish a deadline for the filing of amendments as a matter of right for all applicants in the group. Section 73.3525 is amended to read as follows:  S0(  73.3525 Agreements for removing application conflicts.  S(  S( ****** ă  x(c) Except where a joint request is filed pursuant to paragraph (a) of this section, any applicant filing an  xamendment pursuant to  73.3522(b)(1) and (c), or a request for dismissal pursuant to  73.3568(b)(1)  xand (c), which would remove a conflict with another pending application; or a petition for leave to amend  xRpursuant to  73.3522(b)(2) which would permit a grant of the amended application or an application  xpreviously in conflict with the amended application; or a request for dismissal pursuant to  73.3568(b)(2),  x4shall file with it an affidavit as to whether or not consideration (including an agreement for merger of  xinterests) has been promised to or received by such applicant, directly or indirectly, in connection with the amendment, petition or request.  xf(d) Upon the filing of a petition for leave to amend or to dismiss an application for broadcast facilities  xwhich has been designated for hearing or upon the dismissal of such application on the FCC's own motion  x pursuant to  73.3568, each applicant or party remaining in hearing, as to whom a conflict would be  xpremoved by the amendment or dismissal shall submit for inclusion in the record of that proceeding an  xaffidavit stating whether or not he has directly or indirectly paid or promised consideration (including an agreement for merger of interests) in connection with the removal of such conflict. ******  x(l) The prohibition of collusion as set forth in  1.2105(c) and 73.5002 of this section, which becomes  xDeffective upon the filing of shortform applications, shall apply to all broadcast services subject to competitive bidding. "&4,l(l(,,#"ԌSection 73.3564 is amended to read as follows:  S(  73.3564 Acceptance of applications.  xf(a) (1) Applications tendered for filing are dated upon receipt and then forwarded to the Mass Media  x`Bureau, where an administrative examination is made to ascertain whether the applications are complete.  xExcept for applications for minor modifications of facilities in the nonreserved FM band, as defined in  x 73.3573 (a)(2), long form applications subject to the provisions of  73.5005 found to be complete or  xsubstantially complete are accepted for filing and are given file numbers. In the case of minor defects as  x`to completeness, a deficiency letter will be issued and the applicant will be required to supply the missing  xLor corrective information. Applications that are not substantially complete will not be considered and will be returned to the applicant.  x(2) In the case of minor modifications of facilities in the non-reserved FM band, applications will be  x8placed on public notice if they meet the following two-tiered minimum filing requirement as initially filed in first come/first served proceedings: (i) The application must include: (A) Applicant's name and address, (B) Applicant's original signature, (C) Principal community, (D) Channel or frequency, (E) Class of station, and (F) Transmitter site coordinates; and  x(ii) The application must not omit more than 3 of the second tier items specified in appendix C, Report  xand Order, MM Docket No. 91-347, FCC 92-328, 7 FCC Rcd 5074 (1992). Applications found not to  x~meet minimum filing requirements will be returned to the applicant. Applications found to meet minimum  xfiling requirements, but that contain deficiencies in tender and/or acceptance information, shall be given  xan opportunity for corrective amendment pursuant to  73.3522. Applications found to be substantially  xcomplete and in accordance with the Commission's core legal and technical requirements will be accepted  xtfor filing. Applications with uncorrected tender and/or acceptance defects remaining after the opportunity for corrective amendment will be dismissed with no further opportunity for corrective amendment.  x (b) Acceptance of an application for filing merely means that it has been the subject of a preliminary  xreview by the FCC's administrative staff as to completeness. Such acceptance will not preclude the subsequent dismissal of the application if it is found to be patently not in accordance with the FCC's rules.  x(c) At regular intervals, the FCC will issue a Public Notice listing all long form applications which have  S8( xjbeen accepted for filing. Pursuant to  73.3571(h), 73.3572, and 73.3573(f), such notice shall establish  xa cut-off date for the filing of petitions to deny. With respect to reserved band FM applications, the Public  x>Notice shall also establish a cutoff date for the filing of mutually exclusive applications pursuant to   S!( x73.3573(e). 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.  x(d) The FCC will specify by Public Notice, pursuant to  73.5002, a period for filing applications for new  xstations or for major modifications in the facilities of an existing station. Except for reserved band FM  xstations and TV stations on reserved noncommercial educational channels, applications for new and major  xlmodifications in facilities will be accepted only during these window filing periods specified by the"&4,l(l(,,#" Commission.  x8(e) Applications for minor modification of facilities may be tendered at any time, unless restricted by the  xFCC. These applications will be processed on a "first come/first served" basis and will be treated as  xsimultaneously tendered if filed on the same day. Any applications received after the filing of a lead  xjapplication will be grouped according to filing date, and placed in a queue behind the lead applicant. The  x4FCC will periodically release a Public Notice listing those minor modification of facilities applications accepted for filing.  x(f) If a non-reserved band FM channel allotment becomes vacant, after the grant of a construction permit  xbecomes 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.  x(g) Applications for operation in the 1605-1705 kHz band will be accepted only if filed pursuant to the terms of  73.30(b). Section 73.3568 is amended to read as follows:  S(  73.3568 Dismissal of applications.  x.(a) (1) Failure to prosecute an application, or failure to respond to official correspondence or request for additional information, will be cause for dismissal.  x8(2) Applicants in all broadcast services subject to competitive bidding will be subject to the provisions of  73.5002 and 1.2105(b) regarding the dismissal of their shortform applications.  x8(3) Applicants in all broadcast services subject to competitive bidding will be subject to the provisions of  xl 73.5004, 73.5005 and 1.2104(g) regarding the dismissal of their longform applications and the imposition of applicable withdrawal, default and disqualification payments.  x&(b) (1) Subject to the provisions of  73.3525, dismissal of applications for channels reserved for  xnoncommercial educational use will be without prejudice where an application has not yet been designated for hearing, but may be made with prejudice after designation for hearing.  x(2) Subject to the provisions of  73.3525, requests to dismiss an application for a channel reserved for  xnoncommercial educational use, without prejudice, after it has been designated for hearing, will be  xconsidered only upon written petition properly served upon all parties of record. Such requests shall be  xgranted only upon a showing that the request is based on circumstances wholly beyond the applicant's control which preclude further prosecution of his application.  x(c) Subject to the provisions of  73.3523 and 73.3525, any application for minor modification of facilities may, upon request of the applicant, be dismissed without prejudice as a matter of right.  x&(d) An applicant's request for the return of an application that has been accepted for filing will be regarded as a request for dismissal. "&4,l(l(,,#"ԌSection 73.3571 is amended to read as follows:  S(  73.3571 Processing of AM broadcast station applications. (a) Applications for AM broadcast facilities are divided into three groups.  x$(1) In the first group are applications for new stations or for major changes in the facilities of authorized  xstations. A major change for an AM station authorized under this part is any increase in power, except  xwhere accompanied by a complimentary reduction of antenna efficiency which leads to the same amount,  xor less, radiation in all directions (in the horizontal and vertical planes when skywave propagation is  xinvolved, and in the horizontal plane only for daytime considerations), relative to the presently authorized  xradiation levels, or any change in frequency, hours of operation, or community of license. A major change  xin ownership is a situation where the original party or parties to the application do not retain more than 50% ownership interest in the application as originally filed.  x0(2) The second group consists of applications for licenses and all other changes in the facilities of authorized stations.  x*(3) The third group consists of applications for operation in the 1605-1705 kHz band which are filed  xRsubsequent to FCC notification that allotments have been awarded to petitioners under the procedure specified in  73.30.  x(b) (1) The FCC may, after acceptance of an application for modification of facilities, advise the applicant  x~that such application is considered to be one for a major change and therefore is subject to the provisions  xof  73.3522, 73.3580 and 1.1111 of this chapter pertaining to major changes. Such major modification  S(applications will be dismissed as set forth in paragraph (h)(1)(i) of this section.  x(2) An amendment to an application which would effect a major change, as defined in paragraph (a) (1) of this section, will not be accepted except as provided for in (h)(1)(i).  xz(c) An application for changes in the facilities of an existing station will continue to carry the same file  xnumber even though (pursuant to FCC approval) an assignment of license or transfer of control of said  xlicensee or permittee has taken place if, upon consummation, the application is amended to reflect the new ownership.  xt(d) If, upon examination, the FCC finds that the public interest, convenience and necessity will be served  xby the granting of an application, the same will be granted. If the FCC is unable to make such a finding and it appears that a hearing may be required, the procedure set forth in  73.3593 will be followed.  xT(e) Applications proposing to increase the power of an AM station are subject to the following requirements:  x(1) In order to be acceptable for filing, any application which does not involve a change in site must propose at least a 20% increase in the station's nominal power.  x(2) Applications involving a change in site are not subject to the requirements in paragraph (e)(1) of this section.  x`(3) Applications for nighttime power increases for Class D stations are not subject to the requirements of this section and will be processed as minor changes.  x(4) The following special procedures will be followed in authorizing Class II-D daytime-only stations on"&4,l(l(,,#"  x940 and 1550 kHz, and Class III daytime-only stations on the 41 regional channels listed in  73.26(a), to operate unlimited-time.  x(i) Each eligible daytime-only station in the foregoing categories will receive an Order to Show Cause why  xits license should not be modified to specify operation during nighttime hours with the facilities it is  xlicensed to start using at local sunrise, using the power stated in the Order to Show Cause, that the  xCommission finds is the highest nighttime level--not exceeding 0.5 kW--at which the station could operate  x~without causing prohibited interference to other domestic or foreign stations, or to co-channel or adjacent channel stations for which pending applications were filed before December 1, 1987.  x(ii) Stations accepting such modification shall be reclassified. Those authorized in such Show Cause  xlOrders to operate during nighttime hours with a power of 0.25 kW or more, or with a power that, although less than 0.25 kW, is sufficient to enable them to attain RMS field strengths of 141 mV/m or  xVmore at 1 kilometer, shall be redesignated as Class II-B stations if they are assigned to 940 or 1550 kHz, and as unlimited-time Class III stations if they are assigned to regional channels.  x.(iii) Stations accepting such modification that are authorized to operate during nighttime hours at powers  xless than 0.25 kW, and that cannot with such powers attain RMS field strengths of 141 mV/m or more at 1 kilometer, shall be redesignated as Class II-S stations if they are assigned to 940 or 1550 kHz, and as Class III-S stations if they are assigned to regional channels.  x*(iv) Applications for new stations may be filed at any time on 940 and 1550 kHz and on the regional  xchannels. Also, stations assigned to 940 or 1550 kHz, or to the regional channels, may at any time,  xregardless of their classifications, apply for power increases up to the maximum generally permitted. Such  x$applications for new or changed facilities will be granted without taking into account interference caused  xto Class II-S or Class III-S stations, but will be required to show interference protection to other classes  xof stations, including stations that were previously classified as Class II-S or Class III-S, but were later  x^reclassified as Class II-B or Class III unlimited-time stations as a result of subsequent facilities modifications that permitted power increases qualifying them to discontinue their "S" subclassification.  x~(f) Applications for minor modifications for AM broadcast stations, as defined in (a)(2) of this paragraph,  xmay be filed at any time, unless restricted by the FCC, and, generally will be processed in the order in  x which they are tendered. The FCC will periodically release a Public Notice listing those applications  xaccepted for filing. Any such applications found to be mutually exclusive must be resolved through settlement or technical amendment.  x(g) Applications for change of license to change hours of operation of a Class C AM broadcast station,  xfto decrease hours of operation of any other class of station, or to change station location involving no change in transmitter site will be considered without reference to the processing line. (h) Processing new and major AM broadcast station applications.  x(1)(i) The FCC will specify by Public Notice, pursuant to  73.5002, a period for filing AM applications  xzfor a new station or for major modifications in the facilities of an authorized station. AM applications  xfor new facilities or for major modifications will be accepted only during these specified periods.  xApplications submitted prior to the appropriate filing period or "window" opening date identified in the  xPublic Notice will be returned as premature. Applications submitted after the specified deadline will be  x*dismissed with prejudice as untimely. (ii) Such AM applicants will be subject to the provisions of   S %( x1.2105 and 73.5002 regarding the submission of the shortform application, FCC Form 175, and all  xappropriate certifications, information and exhibits contained therein. To determine which AM applications  S&( xare mutually exclusive, AM applicants must submit the engineering data contained in FCC Form 301 as"&4,l(l(,,#"  xa supplement to the shortform application. Such engineering data will not be studied for technical  x\acceptability, but will be protected from subsequently filed applications as of the close of the window  xfiling period. Determinations as to the acceptability or grantability of an applicant's proposal will not be  xmade prior to an auction. (iii) AM applicants will be subject to the provisions of  1.2105 and 73.5002  S`(regarding the modification and dismissal of their shortform applications.  S8(  xt(2) Subsequently, the FCC will release Public Notices: (i) identifying the shortform applications received  xduring the window filing period which are found to be mutually exclusive; (ii) establishing a date, time  xpand place for an auction; (iii) providing information regarding the methodology of competitive bidding  xto be used in the upcoming auction, bid submission and payment procedures, upfront payment procedures,  xupfront payment deadlines, minimum opening bid requirements and applicable reserve prices in accordance  xwith the provisions of  73.5002; (iv) identifying applicants who have submitted timely upfront payments and, thus, are qualified to bid in the auction.  x(3) If, during the window filing period, the FCC receives nonmutually exclusive AM applications, a  xPublic Notice will be released identifying the nonmutually exclusive applicants, who will be required to  x*submit the appropriate long form application within 30 days of the Public Notice and pursuant to the  xprovisions of  73.5005(d). These nonmutually exclusive applications will be processed and the FCC will  x periodically release a Public Notice listing such nonmutually exclusive applications determined to be  xacceptable for filing and announcing a date by which petitions to deny must be filed in accordance with  xthe provisions of  73.5006 and 73.3584. If the applicant is duly qualified, and upon examination, the  xFCC finds that the public interest, convenience and necessity will be served by the granting of the nonmutually exclusive long form application, the same will be granted.  x(4) (i) The auction will be held pursuant to the procedures set forth in  1.2101 et seq. and 73.5000 et  xBseq. Subsequent to the auction, the FCC will release a Public Notice announcing the close of the auction  xand identifying the winning bidders. Winning bidders will be subject to the provisions of  1.2107 and  x73.5003 regarding down payments and will be required to submit the appropriate down payment within  x10 business days of the Public Notice. Pursuant to  1.2107 and 73.5005, a winning bidder that meets  xjits down payment obligations in a timely manner must, within 30 days of the release of the Public Notice  xannouncing the close of the auction, submit the appropriate longform application for each construction  xpermit for which it was the winning bidder. Longform applications filed by winning bidders shall include the exhibits identified in  73.5005(a).  xj(ii) These applications will be processed and the FCC will periodically release a Public Notice listing such  xVapplications that have been accepted for filing and announcing a date by which petitions to deny must be  xjfiled in accordance with the provisions of  73.5006 and 73.3584. If the applicant is duly qualified, and  xupon examination, the FCC finds that the public interest, convenience and necessity will be served by the  x>granting of the winning bidder's long form application, a Public Notice will be issued announcing that  xthe construction permit is ready to be granted. Each winning bidder shall pay the balance of its winning  xBbid in a lump sum within 10 business days after release of the Public Notice, as set forth in  1.2109(a)  xand 73.5003. Construction permits will be granted by the Commission following the receipt of the full  xpayment. (iii) All longform applications will be cutoff as of the date of filing with the FCC and will be  xprotected from subsequently filed longform applications. Applications will be required to protect all  SH$( xhpreviously filed commercial and noncommercial applications. Winning bidders filing longform  xlapplications may change the technical proposals specified in their previously submitted shortform  xapplications, but such change may not constitute a major change. If the submitted longform application  xwould constitute a major change from the proposal submitted in the shortform application, the longform"&4,l(l(,,#"  S(application will be returned pursuant to paragraph (h)(1)(i) of this section.  S( x(i) In order to grant a major or minor change application made contingent upon the grant of another  x0licensee's request for a facility modification, the Commission will not consider mutually exclusive  xapplications by other parties that would not protect the currently authorized facilities of the contingent  x~applicants. Such major change applications remain, however, subject to the provisions of  73.3580 and  x1.1111. The Commission shall grant contingent requests for construction permits for station modifications  S(only upon a finding that such action will promote the public interest, convenience and necessity. Section 73.3572 is amended to read as follows:  S (  73.3572 Processing of TV broadcast, low power TV, TV translator and TV booster station applications.  S ( (a) Applications for TV stations are divided into two groups:   (1) In the first group are applications for new stations or major changes in the facilities of  xauthorized stations. A major change for TV broadcast stations authorized under this part is any change  x$in frequency or community of license which is in accord with a present allotment contained in the Table  xof Allotments ( 73.606). Other requests for change in frequency or community of license for TV  xBbroadcast stations must first be submitted in the form of a petition for rulemaking to amend the Table of  xBAllotments. In the case of low power TV, TV translator, and TV booster stations authorized under Part 74 of this chapter, a major change is any change in:  Sh( (i) Frequency (output channel) assignment (does not apply to TV boosters);  S@( (ii) Transmitting antenna system including the direction of the radiation,  S( directive antenna pattern or transmission line;  S( (iii) Antenna height;  S( (iv) Antenna location exceeding 200 meters; or  S( (v) Authorized operating power.   0(2) However, if the proposed modification of facilities, other than a change in frequency, will not  x\increase the signal range of the low power TV, TV translator or TV booster station in any horizontal direction, the modification will not be considered a major change.  S(  l  (i) Provided that in the case of an authorized low power TV, TV translator or TV booster which  xis predicted to cause or receive interference to or from an authorized TV broadcast station pursuant to  xL 74.705 or interference with broadcast or other services under  74.703 or  74.709, that an application  xfor a change in output channel, together with technical modifications which are necessary to avoid  xinterference (including a change in antenna location of less than 16.1 km), will not be considered as an application for a major change in those facilities.  S (   (ii) Provided further, that a low power TV, TV translator or TV booster station: authorized on  xa channel from channel 60 to 69, or which is causing or receiving interference or is predicted to cause  xor receive interference to or from an authorized DTV station pursuant to  74.706, or which is located  xwithin the distances specified below in paragraph (iii) of this section to the coordinates of co-channel DTV  xtauthorizations (or allotment table coordinates if there are no authorized facilities at different coordinates),  xmay at any time file a displacement relief application for a change in output channel, together with any  xNtechnical modifications which are necessary to avoid interference or continue serving the station's  xprotected service area. Such an application will not be considered as an application for a major change  xin those facilities. Where such an application is mutually exclusive with applications for new low power"&4,l(l(,,#"  xTV, TV translator or TV booster stations, or with other nondisplacement relief applications for facilities  xfmodifications, priority will be afforded to the displacement application(s) to the exclusion of the other applications.   .(iii)(A) The geographic separations to co-channel DTV facilities or allotment reference coordinates, as applicable, within which to qualify for displacement relief are the following:  S8( ` ` (1) Stations on UHF channels: 265 km (162 miles)  S( ` ` (2) Stations on VHF channels 2-6: 280 km (171 miles) ` ` (3) Stations on VHF channels 7-13: 260 km (159 miles)  S(   (B) Engineering showings of predicted interference may also be submitted to justify the need for displacement relief.   X(iv) Provided further, that the FCC may, within 15 days after acceptance of any other application  xfor modification of facilities, advise the applicant that such application is considered to be one for a major  xchange and therefore subject to the provisions of  73.3522, 73.3580, and 1.1111 of this chapter  xpertaining to major changes. Such major modification applications filed for low power TV, TV translator,  xTV booster stations, and for a nonreserved television allotment, are subject to competitive bidding procedures and will be dismissed if filed outside a specified filing period. See 47 C.F.R.  73.5002(a).  x\(b) A new file number will be assigned to an application for a new station or for major changes in the  xvfacilities of an authorized station, when it is amended so as to effect a major change, as defined in  xparagraph (a)(1) of this section, or result in a situation where the original party or parties to the application  xdo not retain more than 50% ownership interest in the application as originally filed and  73.3580 will  x$apply to such amended application. An application for change in the facilities of any existing station will  xtcontinue to carry the same file number even though (pursuant to FCC approval) an assignment of license  xor transfer of control of such licensee or permittee has taken place if, upon consummation, the application is amended to reflect the new ownership.  xl(c) Amendments to low power TV, TV translator, TV booster stations, or nonreserved television  xapplications, which would require a new file number pursuant to paragraph (b) of this section, are subject  xto competitive bidding procedures and will be dismissed if filed outside a specified filing period. See 47  xC.F.R.  73.5002(a). When an amendment to an application for a reserved television allotment would  xrequire a new file number pursuant to paragraph (b) of this section, the applicant will have the opportunity  xto withdraw the amendment at any time prior to designation for a hearing if applicable; and may be  xafforded, subject to the discretion of the Administrative Law Judge, an opportunity to withdraw the amendment after designation for a hearing.  x(d) Applications for TV stations on reserved noncommercial educational channels will be processed as  xnearly as possible in the order in which they are filed. Such applications will be placed in the processing  x~line in numerical sequence, and will be drawn by the staff for study, the lowest file number first. In order  x that those applications which are entitled to be grouped for processing may be fixed prior to the time  xprocessing of the earliest filed application is begun, the FCC will periodically release a Public Notice  xlisting applications which have been accepted for filing and announcing a date (not less than 30 days after  xissuance) on which the listed applications will be considered available and ready for processing and by which all mutually exclusive applications and petitions to deny the listed applications must be filed.  x.(e) (1) The FCC will specify by Public Notice, pursuant to  73.5002, a period for filing applications for  xa new nonreserved television, low power TV and TV translator stations or for major modifications in the  xfacilities of such authorized station. (2) Such applicants shall be subject to the provisions of  1.2105"&4,l(l(,,#" and competitive bidding procedures. See 47 C.F.R.  73.5000 et seq.  x`(f) Applications for minor modifications for television broadcast, low power television and TV translator  xstations, as defined in paragraph (a)(2) of this Section, may be filed at any time, unless restricted by the FCC, and, generally, will be processed in the order in which they are tendered.  x(g) TV booster station applications may be filed at any time. Subsequent to filing, the FCC will release  x>a Public Notice accepting for filing and proposing for grant those applications which are not mutually  xexclusive with any other TV translator, low power TV, or TV booster application, and providing for the filing of Petitions To Deny pursuant to  73.3584. Section 73.3573 is amended to read as follows:  S (  73.3573 Processing FM broadcast station applications. (a) Applications for FM broadcast stations are divided into two groups:  x$(1) In the first group are applications for new stations or for major changes in the facilities of authorized  xstations. A major change for an FM station authorized under this part is any change in frequency or  xcommunity of license which is in accord with a present allotment contained in the Table of Allotments  x`( 73.202 (b)). A licensee or permittee may seek the higher or lower class adjacent channel, intermediate  xfrequency or co-channel or the same class adjacent channel of its existing FM broadcast station  xLauthorization by filing a minor change application. Other requests for change in frequency or community  xof license for FM stations must first be submitted in the form of a petition for rulemaking to amend the  xTable of Allotments. Longform applications submitted pursuant to  73.5005 for a new FM broadcast  S( xservice may propose a higher or lower class adjacent channel, intermediate frequency or co-channel. Ú For  xznoncommercial educational FM stations, a major change is any change in frequency or community of  xlicense or any change in power or antenna location or height above average terrain (or combination  xthereof) which would result in a change of 50% or more in the area within the station's predicted 1 mV/m  xfield strength contour. (A change in area is defined as the sum of the area gained and the area lost as a  xpercentage of the original area). A major change in ownership is a situation where the original party or  xparties to the application do not retain more than 50% ownership interest in the application as originally filed.  x0(2) The second group consists of applications for licenses and all other changes in the facilities of authorized stations.  xNote. 1: Applications to modify the channel and/or class of an FM broadcast station to an adjacent  xchannel, intermediate frequency (IF) channel, or co-channel shall not require any other amendments to  xthe Table of Allotments. Such applications may resort to the provisions of the Commission's Rules  xpermitting short spaced stations as set forth in  73.215 as long as the applicant shows by separate exhibit  xattached to the application the existence of an allotment reference site which meets the allotment standards,  xthe minimum spacing requirements of  73.207 and the city grade coverage requirements of  73.315.  x8This exhibit must include a site map or, in the alternative, a statement that the transmitter will be located  xon an existing tower. Examples of unsuitable allotment reference sites include those which are offshore,  xin a national or state park in which tower construction is prohibited, on an airport, or otherwise in an area"&4,l(l(,,#" which would necessarily present a hazard to air navigation.  x(b) (1) The FCC may, after the acceptance of an application for modification of facilities, advise the  xapplicant that such application is considered to be one for a major change and therefore subject to the  xprovisions of  73.3522, 73.3580 and 1.1111 of this chapter pertaining to major changes. Such major  x.modification applications in the nonreserved band will be dismissed as set forth in paragraph (f)(2)(i) of this section.  x8(2) An amendment to a nonreserved band application which would effect a major change, as defined in paragraph (a)(1) of this section, will not be accepted, except as provided for in (f)(2)(i).  x(3) A new file number will be assigned to a reserved band application for a new station or for major  xchanges in the facilities of an authorized station, when it is amended so as to effect a major change, as  xdefined in paragraph (a)(1) of this section. Where an amendment to a reserved band application would  xrequire a new file number, the applicant will have the opportunity to withdraw the amendment at any time  xprior to designation for hearing, if applicable; and may be afforded, subject to the discretion of the Administrative Law Judge, an opportunity to withdraw the amendment after designation for hearing.  x8(c) An application for changes in the facilities of any existing station will continue to carry the same file  xnumber even though (pursuant to FCC approval) an assignment of license or transfer of control of such  xlicensee or permittee has taken place if, upon consummation, the application is amended to reflect the new ownership.  xt(d) If, upon examination, the FCC finds that the public interest, convenience and necessity will be served  xby the granting of an application for FM broadcast facilities, the same will be granted. If the FCC is  xfunable to make such a finding and it appears that a hearing may be required, the procedure given in  73.3593 will be followed.  x (e) Applications for reserved band and Class D FM broadcast stations will be processed as nearly as  x*possible in the order in which they are filed. Such applications will be placed in the processing line in  xnumerical sequence, and will be drawn by the staff for study, the lowest file number first. In order that  xthose applications which are entitled to be grouped for processing may be fixed prior to the time  xprocessing of the earliest filed application is begun, the FCC will periodically release a Public Notice  xlisting applications which have been accepted for filing and announcing a date (not less than 30 days after  xLpublication) 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. (f) Processing non-reserved FM broadcast station applications.  x(1) Applications for minor modifications for non-reserved FM broadcast stations, as defined in (a)(2) of  xthis paragraph, may be filed at any time, unless restricted by the FCC, and, generally, will be processed  xin the order in which they are tendered. The FCC will periodically release a Public Notice listing those  xVapplications accepted for filing. Processing of these applications will be on a "first come/first serve" basis  xwith the first acceptable application cutting off the filing rights of subsequent applicants. All applications  xreceived on the same day will be treated as simultaneously tendered and, if they are found to be mutually  xexclusive, must be resolved through settlement or technical amendment. Applications received after the  xtender of a lead application will be grouped, according to filing date, behind the lead application in a  xjqueue. The priority rights of the lead applicant, as against all other applicants, are determined by the date  xRof filing, but the filing date for subsequent applicants for that channel and community only reserves a"&4,l(l(,,#"  xplace in the queue. The rights of an applicant in a queue ripen only upon a final determination that the  xBlead applicant is unacceptable and if the queue member is reached and found acceptable. The queue will  xremain behind the lead applicant until a construction permit is finally granted, at which time the queue dissolves.  x.(2) (i) The FCC will specify by Public Notice, pursuant to  73.5002(a), a period for filing non-reserved  xband FM applications for a new station or for major modifications in the facilities of an authorized station.  x`FM applications for new facilities or for major modifications will be accepted only during the appropriate  xfiling period or "window". Applications submitted prior to the window opening date identified in the  xPublic Notice will be returned as premature. Applications submitted after the specified deadline will be  xdismissed with prejudice as untimely. (ii) Such FM applicants will be subject to the provisions of   x1.2105 and 73.5002 regarding the submission of the shortform application, FCC Form 175, and all  x.appropriate certifications, information and exhibits contained therein. FM applicants may submit a set of  xpreferred site coordinates as a supplement to the shortform application. Any specific site indicated by  xFM applicants will not be studied for technical acceptability, but will be protected from subsequently filed  xapplications as a fullclass facility as of the close of the window filing period. Determinations as to the  xacceptability or grantability of an applicant's proposal will not be made prior to an auction. (iii) FM  xapplicants will be subject to the provisions of  1.2105 and 73.5002(c) regarding the modification and  S0(dismissal of their shortform applications.  S(  xt(3) Subsequently, the FCC will release Public Notices: (i) identifying the shortform applications received  xduring the window filing period which are found to be mutually exclusive; (ii) establishing a date, time  xpand place for an auction; (iii) providing information regarding the methodology of competitive bidding  xto be used in the upcoming auction, bid submission and payment procedures, upfront payment procedures,  xupfront payment deadlines, minimum opening bid requirements and applicable reserve prices in accordance  xwith the provisions of  73.5002; (iv) identifying applicants who have submitted timely upfront payments and, thus, are qualified to bid in the auction.  x(4) If, after the close of the appropriate window filing period, a non-reserved FM allotment remains  xzvacant, the window remains closed until the FCC, by Public Notice, specifies a subsequent period for  xfiling nonreserved band FM applications for a new station or for major modifications in the facilities of  xan authorized station pursuant to paragraph (f)(2)(i) of this section. If, during the window filing period,  xthe FCC receives only one application for any nonreserved FM allotment, a Public Notice will be released  xidentifying the nonmutually exclusive applicant, who will be required to submit the appropriate longform  x.application within 30 days of the Public Notice and pursuant to the provisions of  73.5005. These non xmutually exclusive applications will be processed and the FCC will periodically release a Public Notice  xplisting such nonmutually exclusive applications determined to be acceptable for filing and announcing  xa date by which petitions to deny must be filed in accordance with the provisions of  73.5006 and  x73.3584 of this chapter. If the applicant is duly qualified, and upon examination, the FCC finds that the  xpublic interest, convenience and necessity will be served by the granting of the nonmutually exclusive longform application, it will be granted.  x(5) (i) The auction will be held pursuant to the procedures set forth in  1.2101 et seq. and 73.5000 et  xBseq. Subsequent to the auction, the FCC will release a Public Notice announcing the close of the auction  xand identifying the winning bidders. Winning bidders will be subject to the provisions of  1.2107 and  x73.5003 regarding down payments and will be required to submit the appropriate down payment within  x10 business days of the Public Notice. Pursuant to  1.2107 and 73.5005, a winning bidder that meets"& 4,l(l(,,#"  x.its down payment obligations in a timely manner must, within 30 days of the release of the public notice  xannouncing the close of the auction, submit the appropriate longform application for each construction  xpermit for which it was the winning bidder. Longform applications filed by winning bidders shall include the exhibits identified in  73.5005(a).  xj(ii) These applications will be processed and the FCC will periodically release a Public Notice listing such  xVapplications that have been accepted for filing and announcing a date by which petitions to deny must be  xfiled in accordance with the provisions of  73.5006 and 73.3584 of this chapter. If the applicant is duly  xqualified, and upon examination, the FCC finds that the public interest, convenience and necessity will  xzbe served by the granting of the winning bidder's longform application, a Public Notice will be issued  xannouncing that the construction permit is ready to be granted. Each winning bidder shall pay the balance  xof its winning bid in a lump sum within 10 business days after release of the Public Notice, as set forth  xin  1.2109(a) and 73.5003(c). Construction permits will be granted by the Commission following the  xreceipt of the full payment. (iii) All longform applications will be cutoff as of the date of filing with the  xFCC and will be protected from subsequently filed longform applications and rulemaking petitions.  xApplications will be required to protect all previously filed commercial and noncommercial applications.  xWinning bidders filing longform applications may change the technical proposals specified in their  x8previously submitted shortform applications, but such change may not constitute a major change. If the  xsubmitted longform application would constitute a major change from the proposal submitted in the short  xform application or the allotment, the longform application will be returned pursuant to paragraph (f)(2)(i) of this section. Note 2: Processing of applications for new low power educational FM applications:  xPending the Commission's restudy of the impact of the rule changes pertaining to the allocations of  x10-watt and other low power noncommercial educational FM stations, applications for such new stations,  xor major changes in existing ones, will not be accepted for filing. Exceptions are: (1) In Alaska,  xapplications for new Class D stations or major changes in existing ones are acceptable for filing; and (2)  xapplications for existing Class D stations to change frequency are acceptable for filing. In (2), upon the  xgrant of such application, the station shall become a Class D (secondary) station. (See First Report and  xOrder, Docket 20735, FCC 78-386, 43 FR 25821, and Second Report and Order, Docket 20735, FCC  xf78-384, 43 FR 39704.) Effective date of this FCC imposed "freeze" was June 15, 1978. Applications which specify facilities of at least 100 watts effective radiated power will be accepted for filing Note 3: For rules on processing FM translator and booster stations, see  74.1233 of this chapter.  S8( @III. The following sections are added as amendments to Part 73 of Chapter 1 of Title 47 of the  S (Code of Federal Regulations.  S!( Subpart I Competitive Bidding Procedures  Sp#(  73.5000 Services subject to competitive bidding.  2!>(a) Mutually exclusive applications for new facilities and for major changes to existing facilities in the  2!following broadcast services are subject to competitive bidding: AM; FM; FM translator; analog  2!television; low power television; and television translator. Mutually exclusive applications for new"&!4,l(l(,,#"  2!facilities and for major changes to existing facilities in the Instructional Television Fixed Service (ITFS)  2!$are also subject to competitive bidding. The general competitive bidding procedures found in 47 C.F.R. Part 1, Subpart Q will apply unless otherwise provided in 47 C.F.R. Part 73 and Part 74.  2!b(b) Mutually exclusive applications for broadcast channels in the reserved portion of the FM band  2!(Channels 200220) and for television broadcast channels reserved for noncommercial educational use are not subject to competitive bidding procedures.  S(  73.5001 Competitive bidding procedures.  2!(a) Specific competitive bidding procedures for broadcast service and ITFS auctions will be set forth by  2!>public notice prior to any auction. The Commission may also design and test alternative procedures,  S (including combinatorial bidding and real time bidding. See 47 C.F.R.  1.2103 and 1.2104.  2!$(b) The Commission may utilize the following competitive bidding mechanisms in broadcast service and ITFS auctions:  S2( 2! (1) Sequencing. The Commission will establish and may vary the sequence in which broadcast service construction permits and ITFS licenses will be auctioned.  S( 2!> (2) Grouping. In the event the Commission uses either a simultaneous multiple round competitive  2!bidding design or combinatorial bidding in broadcast service or ITFS auctions, the Commission will determine which construction permits or licenses will be auctioned simultaneously or in combination.  S( 2! (3) Reservation price. The Commission may establish a reservation price, either disclosed or  2!undisclosed, below which a broadcast construction permit or ITFS license subject to auction will be not awarded.  S( 2! (4) Minimum and maximum bid increments. The Commission may, by announcement before or during  2!8broadcast service or ITFS auctions, require minimum bid increments in dollar or percentage terms. The  2!Commission may, by announcement before or during broadcast service or ITFS auctions, establish maximum bid increments in dollar or percentage terms.  S( 2! (5) Minimum opening bids. The Commission may establish a minimum opening bid for each broadcast construction permit or ITFS license subject to auction.  SD( 2! (6) Stopping rules. The Commission will establish stopping rules before or during multiple round broadcast service or ITFS auctions in order to terminate the auction within a reasonable time.  S!( 2! (7) Activity rules. The Commission will establish activity rules which require a minimum amount of  2!bidding activity. In the event that the Commission establishes an activity rule in connection with a  2! simultaneous multiple round auction, each bidder will be entitled to request and will be automatically granted a certain number of waivers of such rule during the auction. "&"4,l(l(,,#"Ԍ S(  73.5002 Bidding application and certification procedures; prohibition of collusion.  2!`(a) Prior to any broadcast service or ITFS auction, the Commission will issue a public notice announcing  2!the upcoming auction and specifying the period during which all applicants seeking to participate in an  2!auction must file their applications for new broadcast or ITFS facilities or for major changes to existing  2!4facilities. Broadcast service or ITFS applications for new facilities or for major modifications will be  2!accepted only during these specified periods. This initial and other public notices will contain information  2!8about the completion and submission of applications to participate in the broadcast or ITFS auction, any  2!8materials that must accompany the applications, and any filing fee that must accompany the applications  2!or any upfront payments that will need to be submitted. Such public notices will also, in the event  2! mutually exclusive applications are filed for broadcast construction permits or ITFS licenses, contain  2!binformation about the method of competitive bidding to be used and more detailed instructions on  2!submitting bids and otherwise participating in the auction. In the event applications are submitted that  2!are not mutually exclusive with any other application in the same service, such applications will be identified by public notice and will not be subjected to auction.  2!\(b) To participate in broadcast service or ITFS auctions, all applicants must timely submit shortform  2!Lapplications (FCC Form 175), along with all required certifications, information and exhibits, pursuant to  2!the provisions of 47 C.F.R.  1.2105(a) and any Commission public notices. So determinations of mutual  2!exclusivity for auction purposes can be made, applicants for nontable broadcast services or for ITFS must  2!also submit the engineering data contained in the appropriate FCC form (FCC Form 301, FCC Form 346,  2!jFCC Form 349 or FCC Form 330). Beginning January 1, 1999, all shortform applications must be filed electronically.  2!(c) Applicants in all broadcast service or ITFS auctions will be subject to the provisions of 47 C.F.R.   2!L1.2105(b) regarding the modification and dismissal of their shortform applications. Notwithstanding the  2!general applicability of Section 1.2105(b) to broadcast and ITFS auctions, applicants who file mutually  2!exclusive major modification applications, or mutually exclusive major modification and new station  2!applications, will be permitted to make amendments to their engineering submissions following the filing of their shortform applications so as to resolve their mutual exclusivity.  2!z(d) The prohibition of collusion set forth in 47 C.F.R.  1.2105(c), which becomes effective upon the  2!filing of shortform applications, shall apply to all broadcast service or ITFS auctions. Notwithstanding  2!the general applicability of Section 1.2105(c) to broadcast and ITFS auctions, applicants who file mutually  2!>exclusive major modification applications, or mutually exclusive major modifications and new station  2!applications, will be permitted to resolve their mutual exclusivities by means of engineering solutions or  2!Bsettlements during a limited period after the filing of shortform applications. Such period will be further specified by Commission public notices.  S!(  73.5003 Submission of upfront payments, down payments and full payments.  2!(a) To be eligible to bid, each bidder in every broadcast service or ITFS auction shall submit an upfront  2!payment prior to the commencement of bidding, as set forth in any public notices and in accordance with 47 C.F.R.  1.2106.  2!(b) Within ten (10) business days following the close of bidding and notification to the winning bidders,"&#4,l(l(,,#"  2!each winning bidder in every broadcast service or ITFS auction shall make a down payment in an amount  2!sufficient to bring its total deposits up to twenty (20) percent of its high bid(s), as set forth in 47 C.F.R.  1.2107(b).  2!(c) Each winning bidder in every broadcast service or ITFS auction shall pay the balance of its winning  2!zbid(s) in a lump sum within ten (10) business days after release of a public notice announcing that the  2!*Commission is prepared to award the construction permit(s) or license(s), as set forth in 47 C.F.R.   2!j1.2109(a). If a winning bidder fails to pay the balance of its winning bid in a lump sum by the applicable  2!pdeadline as specified by the Commission, it will be allowed to make payment within ten (10) business  2!days after the payment deadline, provided that it also pays a late fee equal to five (5) percent of the  2!amount due. Broadcast construction permits and ITFS licenses will be granted by the Commission following the receipt of full payment.  S (  73.5004 Bid withdrawal, default and disqualification.  2!(a) The Commission shall impose the bid withdrawal, default and disqualification payments set forth in  2!V47 C.F.R.  1.2104(g) upon bidders who withdraw high bids during the course, or after the close, of any  2! broadcast service or ITFS auction, who default on payments due after an auction closes, or who are  2!disqualified. Bidders who are found to have violated the antitrust laws or the Commission's rules in  2!~connection with their participation in the competitive bidding process may also be subject to the remedies set forth in 47 C.F.R.  1.2109(d).  2!>(b) In the event of a default by or the disqualification of a winning bidder in any broadcast service or  2!ITFS auction, the Commission will follow the procedures set forth in 47 C.F.R.  1.2109(b)(c) regarding the reauction of the construction permit(s) or license(s) at issue.  S(  73.5005 Filing of longform applications.  2!p(a) Within thirty (30) days following the close of bidding and notification to the winning bidders, each  2!Lwinning bidder must submit an appropriate longform application (FCC Form 301, FCC Form 346, FCC  2!Form 349 or FCC Form 330) for each construction permit or license for which it was the high bidder.  2!XLongform applications filed by winning bidders shall include the exhibits required by 47 C.F.R.   2!1.2107(d) (concerning any bidding consortia or joint bidding arrangements);  1.2110(i) (concerning  2!designated entity status, if applicable); and  1.2112(a) & (b) (concerning disclosure of ownership and real  2!party in interest information, and, if applicable, disclosure of gross revenue information for small business applicants).  2!(b) The longform application should be submitted pursuant to the rules governing the service in which  2!the applicant is a high bidder and according to the procedures for filing such applications set out by public  2!notice. When electronic procedures become available for the submission of longform applications, the Commission may require all winning bidders to file their longform applications electronically. X` hp x (#%'0*,.8135@8:in an adjudicatory proceeding. Recusal from a nonjudicial proceeding such as the rulemaking to  2!implement the Commission's newly expanded auction authority is appropriate only where there is clear  2!`and convincing evidence of an unalterably closed mind on an issue that is critical to the disposition of the  S~( 2!proceeding.~h  {O#( 2!ԍSee C & W Fish Company v. Fox, 931 F.2d 1556, 1564 (D.C. Cir. 1991) (preappointment statements of administrator endorsing particular standard were insufficient to show bias). Further, congressional influence in a rulemaking is improper only to the extent that it causes  SV( 2!Vthe agency to deviate from the substantive law.R&V  {O&( 2!ԍSee, e.g.,ĠChemung County v. Dole, 804 F.2d 216, 222 (2d Cir. 1986) (holding that the test is whether political  {O'( 2!pressure was intended to and did influence the agency to act for irrelevant reasons); District of Columbia Fed. of  {OL(( 2!Civic Assns. v. Volpe, 459 F.2d 1231, 1246 (D.C. Cir. 1972) (administrative decision must be strictly on the merits and completely without regard to any considerations not made relevant by Congress in the applicable statutes). R Finally, the appearance of bias in the nonadjudicatory  2!context may be cured by the development of "a fullscale administrative record which might dispel any  S( 2!8doubts about the true nature of [the agency's] action." ATX, 41 F.3d at 1528, citing Volpe, 459 F.2d at 1249. "+,,,@"Ԍ @&ԙ Willsyr points to no specific statements that even suggest, let alone provide clear and convincing  2!`evidence, that I have an unalterably closed mind on any issue in this rulemaking proceeding. During the  S( 2!confirmation process, in written responses to questions, I acknowledged that "the Bechtel decision has  2!Bcaused unfairness to many applicants who have had further processing of their applications delayed and,  2!"as a result of that court decision, will necessarily have their applications processed under new  S:( 2!procedures."a:i yO(ԍCongressional Record, S11309 (Oct. 29, 1997) (Exhibit 1).a Consistent with that response and my responsibility regarding the implementation of the  2!Commission's newly authorized auction authority under the Balanced Budget Act in a fair and impartial  2!manner, I also indicated that "[t]he Commission certainly may consider as part of th[e] rulemaking  S( 2!pproceeding any arguments that particular classes of pending applicants should be treated differently."2Xi {O (ԍ Id.2  2!BHowever, inclusion of that issue was largely dictated by statutory language unambiguously according the  2!$agency discretion to resolve such cases by auctions or comparative hearings. Therefore, my willingness  2!to support inclusion in the Notice of Proposed Rulemaking in this proceeding of a request for comment  2!on whether there were equitable circumstances warranting the use of comparative hearings in certain types of cases is certainly not evidence that I have a closed mind on any issue in the rulemaking.  @bNor did I agree to support the adoption of rules, or take any other action, that would be favorable  2!to a particular applicant in exchange for Senator Helms's agreement to support my nomination to be  2!LChairman of the Commission. Senator Helms's remarks in support of my confirmation, published in the  S2( 2!VCongressional Record and quoted in a variety of press reports, do not reflect otherwise. Senator Helms stated:  d p<` ` I have been given assurances satisfactory to me by Mr. Kennard that he  d pdwill, within statute and regulation, work in good faith with me and others  Sl(to resolve the problems the Bechtel decision caused. x`  d pXX` `  I was very impressed when Mr. Kennard came to my office and met  d pnwith me about 3 weeks ago. I appreciate his voluntary assurance that he  S(will work with us on the Zeb Lee case.ai {OV(ԍCongressional Record at S11309 (October 29, 1997). ax`  ST( 2!DSenator Helms further explained this matter in a letter to the Senate Select Committee on Ethics. Specifically, the November 20, 1997 letter states:  XAfter his recusal from the WZLS matter, and before his confirmation, I met with Mr.  S( Kennard to discuss, among other things, the difficulties of implementing the Bechtel  decision. I appreciated Mr. Kennard's candor; and on the Senate floor I announced that  BI would vote for his confirmation, stating "I have been given assurances satisfactory to  S<( me by Mr. Kennard that he will, within statute and regulation, work in good faith with  S ( me and others to resolve the problems associated with the Bechtel decision." . . . At no   time, either publicly or in my private conversations with Mr. Kennard, did I state that my  support for his nomination depended on the outcome of any specific adjudication.  jInstead, I sought clarification and acknowledgment of the public policy issues raised by  ~implementation of the Bechtel decision, a matter of great importance to not only one of"v#,|,***!"  S(my constituents, but to all those similarly situated.Xi yOh( 2!<ԍLetter, dated November 20, 1997, from Jesse Helms to Bob Smith, Chairman, and Harry Reid, Vice Chairman,  yO0(Senate Select Committee on Ethics (emphasis in the original).    S(  @As Senator Helms's remarks and my written answers to the committee reflect, my concerns  S( 2!pregarding the unfairness resulting from the Bechtel decision pertained not to a particular applicant in a  2!pending case, but to the general policies surrounding applicants that were caught in the comparative freeze.  2!As the Commission's General Counsel, I headed the office that was chiefly responsible for making  2!recommendations to the Commission regarding these hearing cases, and I was well acquainted with the  S( 2!issues that arose from the Bechtel decision. It was these policy concerns, in light of the explicit discretion  2!in the statute regarding the use of auctions or hearings in certain pending cases, that led me to support the  2!inclusion of a request for comments on whether equitable considerations militated against the use of  2!auctions in all of these cases. Of course, even without a specific request focusing on this issue,  2!commenters would have had an opportunity to argue that equitable considerations warranted different treatment for certain classes of pending applicants.  @Finally, scattered, purely speculative newspaper articles reporting the circumstances surrounding  2!Vmy confirmatiion and the initial opposition but ultimate support of my nomination by Senator Helms, are  2!not a basis for requiring my recusal from this rulemaking proceeding. None of the press reports quote  2!&me directly and only quote material from Senator Helms published in the Congressional Record.  2!Nevertheless, various articles and editorials surmise that, because Senator Helms expressed some concern  2!regarding the plight of Orion in connection with my nomination, his ultimate support of that nomination  2!must have been the result of my agreement to assist Orion not only in the adjudicatory proceeding but  2!&through the adoption of rules that would somehow favor Orion. However, none of these articles  2!`corroborate the existence of such an agreement, reflect my prejudgment of any issue in MM Docket No.  2!t97234, et al. (or in the related Biltmore Forest case from which I am recused), or otherwise provide any  2!evidence supporting the request that I recuse myself from participating in any aspect of this rulemaking proceeding.  @DSuffice it to say that Senator Helms received no assurance from me regarding the outcome of the  2!adjudicatory proceeding involving Biltmore Forest or the adoption of any rules to govern the resolution  2!of that proceeding. To safeguard the integrity of the adjudicatory proceeding and to avoid the appearance  2!of any impropriety regarding any decision ultimately reached in that proceeding, I recused myself from  2!that proceeding. Having done so, I see no reason also to recuse myself from any aspect of this  2!rulemaking proceeding. On the discrete issues raised in the rulemaking proceeding, I have participated  2! in every aspect of this First Report and Order. As is my practice, I approached every issue decided herein with an open mind and I have relied solely on the record compiled in this proceeding. "-,**v"  S(  X` hp x (#%'0*,.8135@8: