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WASHINGTON, D.C. 20554 FCC 99-240 News media information 202/418-0500 Fax-On-Demand 202/418-2830 Internet: http://www.fcc.gov ftp.fcc.gov Released: September 9, 1999 COMMISSION SEEKS COMMENT ON PROCESSING ORDER FOR APPLICATIONS FILED PURSUANT TO THE COMMISSION'S NEW LOCAL BROADCAST OWNERSHIP RULES By this Public Notice, the Commission requests supplemental comment in MM Docket Numbers 91-221 and 87-8 on procedures for processing applications filed pursuant to the Report and Order adopted in the local broadcast ownership proceeding on August 5, 1999. In that order, we stated that "[a]pplications filed pursuant to this Report and Order will not be accepted by the Commission until the effective date" of the order, which will be sixty days after publication in the Federal Register. We also said: "We realize that the rules adopted in this Report and Order could result in two or more applications being filed on the same day relating to stations in the same market and that due to the voice count all applications might not be able to be granted. We will address how to resolve such conflicts in a subsequent action." This Notice seeks comment on how to resolve such conflicts. Ordinarily, we would process these applications in the order in which they are filed. Generally, however, we treat broadcast applications filed on the same day as being filed simultaneously, regardless of the time of filing. Under the Commission's new local ownership rules, as we noted in the Local Ownership Order, we anticipate that applications for transfer or assignment might be filed on the same day relating to stations in the same market that will not all be able to be granted due to the voice counts that apply to the local ownership rules. For example, suppose television stations A, B, and C, all licensed to the same DMA, filed applications on the same day to purchase a second television station in their market. If grant of any one of these applications would bring the voice count down to eight in the DMA and the remaining applications rely on the minimum voice count for compliance with the new duopoly rule, then neither of the remaining applications could be granted. The order in which the applications are processed would thus be determinative in these situations. Similar issues could arise in the radio-television cross ownership rule context, in situations in which grant of one application will bring the voice count down to ten or twenty, such that certain other applications relying on the minimum voice count for compliance with the rule could not be granted. One approach to resolving these potential conflicts would be to process the applications on a pure first-come, first-served basis. We believe that the difficulties inherent in a system that would require the Commission to determine whose application was filed first on a minute-by-minute -- or indeed second-by-second -- basis weighs against taking this approach. We seek comment on this tentative conclusion. We believe that the most prudent, easy to administer, and fair method for determining the order in which applications filed on the same day will be processed is by random selection. Under this procedure, each potentially conflicting applicant in a market would be assigned a random number which would be determined by use of one or more forced-air blowers each containing numbered ping- pong balls. The applications would then be processed in ascending order based upon their randomly assigned numbers. We believe that we have authority under Section 310(d) of the Communications Act to use random selection to determine the order in which the Commission processes these applications. We also believe use of random selection in this context is not inconsistent with Section 309(i) of the Communications Act, which provides that "the Commission shall not issue any license or permit using a system of random selection under this subsection after July 1, 1997," except with respect to noncommercial stations. By its terms, this provision applies only to use of random selection for the issuance of a license or permit. The Bureau proposes to use random selection to determine processing order for applications for transfer or assignment of existing licenses, not to determine who will be issued an initial license or permit. Thus, we believe Section 309(i) is inapplicable. We thus seek comment on the use of random selection to determine processing order, as well as on any alternatives, such as auctions or first-come, first-served, that are both fair and easy to administer. We also seek comment on when the lotteries, if they are implemented, should be held relative to the filing of applications. We are setting relatively short comment periods so that these procedures will be in place when the new ownership rules go into effect and because we do not wish to delay the time for parties to be able to begin filing applications pursuant to the new ownership rules. The issues raised here are narrow, and we believe the comment periods will provide ample time for comment under the circumstances. Because of these timing concerns, we also anticipate that the rules adopted will be made effective upon publication in the Federal Register. We seek comment on these issues. Comments in response to this Public Notice are due on or before October 4, 1999, and Reply Comments are due on or before October 12, 1999. Comments may be filed using the Commission's Electronic Comment Filing System (ECFS) or by filing paper copies. Comments filed through the ECFS can be sent as an electronic file via the Internet to . In completing the transmittal screen, commenters should include their full name, Postal Service mailing address, and the applicable docket or rulemaking number. Parties may also submit an electronic comment by Internet e-mail. To get filing instructions for e-mail comments, commenters should send an e-mail to ecfs@fcc.gov, and should include the following words in the body of the message, "get form ." A sample form and directions will be sent in reply. To file comments by paper, parties must submit an original and four copies to the Office of the Secretary, Federal Communications Commission, 445 Twelfth Street, S.W., Washington, D.C. 20554. In addition, parties should submit one copy to Vicki Phillips, Chief, Legal Branch, Policy and Rules Division, Mass Media Bureau, Federal Communications Commission, 445 Twelfth Street, S.W., Washington, D.C. 20554. All comments should reference FCC 99-240 and be filed in MM Docket Numbers 91-221 and 87-8. Comments and reply comments will be available for public inspection during regular business hours in the FCC Public Reference Room in the Commission's headquarters at 445 Twelfth Street, S.W., Washington, D.C. 20554. Action by the Commission on September 8, 1999. For additional information, contact Vicki Phillips of the Policy and Rules Division at (202) 418-2120. - FCC -