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Õ"’ü¦:R™Cq´@mQÔ7¦Fú'ËEJvU=¦.ͼ,y…6×Ê}çèƒÑÒŠÞl Òé…æ5dzσú^àNÔlU'z‡ƒâçb|T‘g‰žW—ª û=>ü®ÿã Sö,Ñ(-g”^®ògÝR ÇôAÙ´œÐ^2«>óЧ»7„ùÉxšY’Š 1Èðos±ñq4_E±çCD§)6ôë‰(n–1þ ™,»ÞºÝ`ìNÙÐØ\ú]—«VÙg¼€R¸üV¿ÁbëÁðèíjºøWabç#D;»ÄAé•rÈp›hlÃ0#œA†}{w6’†ÝSõ á o7è†í ÎåüU(Ý"Ètššlzô º÷ÅjËÂ¥&Çåߢ2­°˜_‚BÖ–Éñðú…Ú æ"\]ߦeÐ`X‚ˆÛ²í£Qªµ3ݘÑn/š0ÈŸ" -Z"› øÞÎ.e±/þïÍï85à•Zš†wä@˜››Ó5}ÈtÌÌunõòŒzxlÖåZÖ\Bƒ™po2y>úbë]I3•öýV3 ³Ë“®5Dç?ÃAøÅÑ>°Ùq~JMöB—õ”ÜV"ñ5Ó¹žMWWU> %U> 0CD ‡ 0‚§ ) nX9 04‘ #!Å Næ ^ è wô 4ø  m                                                                      B% %ô\  `&Times New Romanô5ô\  €`&Times New Roman(ÿÿ$òòÚ  ÚÚ  Úóó Ý ƒ ¤T!ÝÓ  ÓÝ  Ý€€€€€òòÚ  Ú1Ú  ÚóóÔ€X!õXõôÔÔ€X!õXXX!õÔIronically,€these€entities,€along€with€partnerships€composed€solely€of€natural€persons,€areÐ ° Ðòòexemptóó€from€the€race€and€gender€identification€requirement.€€òòSee€supraóó€at€para.€103.€€Where€theÐ  ð Ðentities€most€susceptible€to€meaningful€application€of€a€rule€are€exempt,€and€the€ones€leastÏsusceptible€are€covered,€the€regulatory€scheme€seems€a€crazy„quilt.(9!2s,$¤¤Ý ƒ ¤T!ÝÓ  ÓÝ  ÝÓÓ€€€€€òòÚ  Ú0Ú  Úóó3|X «%ô\  `&Times New RomanôôXô\  PŽ6G;ôP5ô\  €`&Times New RomanXXjô\  PŽ6G;XP( ¤T$¡¡Ó  Ó˜HP LaserJet 4 Plus,ð,,,,,ð0twƒ%cöfy%(º‡È³†ÿU‹ÿÀÀÀ dÝ ƒ ¤T!ÝÓ  ÓÝ  ÝÑ  ÑÑ8€WTôõdÊdÈ8Ñò òó óÔ_Ôà0  àà0` (#(#àà0¸ ` (#` (#àà0¸ (#¸ (#àà0h(#(#àà0Àh(#h(#àà0À(#À(#àà0p(#(#àà0Èp(#p(#àÐ È(#È(# ÐÌò òÔ€X!õXõôÔÔ€X!õXXX!õÔà@Ž Ž ìàCommissioner€Harold€W.€Furchtgott„Roth,€Dissenting€In€PartˆÐ D” ÐÌIn€the€Matter€of€1998€Biennial€Regulatory€Review€„„€Streamlining€of€Mass€MediaÏApplications,€Rules,€and€Processes;€Policies€and€Rules€Regarding€Minority€and€FemaleÏOwnership€of€Mass€Media€Facilities;€MM€Docket€Nos.€98„43,€91„140,€94„149Ìó óÌà  àI€thank€the€Mass€Media€Bureau€and€my€colleagues€for€their€fine€efforts€on€this€good€item.€ÏI€am€pleased€that€we€are€simplifying€our€rules€regarding,€among€other€things,€the€filing€of€massÏmedia€applications€and€reports€and€that€we€are€moving€to€a€certification€system.€€€€€€€ÌÌà  àI€respectfully€dissent,€however,€from€the€decision€to€require€broadcast€station€owners€toÏidentify€their€race,€ethnicity€and€gender€on€Annual€Ownership€Report€Form€323.€€òòSee€supraóó€atÐ ”ä  Ðparas.€96„105.€€I€do€so€for€several€reasons,€including:€the€impracticability€of€this€kind€ofÏregulation,€the€lack€of€express€statutory€authority€for€it,€and€the€general€inconsistency€of€thisÏreporting€requirement€with€the€position€we€recently€took€in€òòSuspension€of€Filing€Requirement€forÐ d´ ÐFiling€Broadcast€Station€Annual€Employment€Reports€and€Program€Reportsóó.Ð T¤ ÐÌà@²²8ìàI.ˆÌÌà  àòòóóI€believe€the€central€premise€of€this€reporting€requirement€is€fundamentally€flawed.€ThereÐ d Ðis€an€inherent€futility€in€seeking€to€classify€broadcast€licensees,€which€are€often€corporations€orÏpartnerships,€in€terms€of€race€and€gender.€€For€instance,€what€is€the€race€of€the€ABC€radio€group?€ÏThe€ethnicity€of€CBS/Westinghouse?€€Or€the€gender€of€a€family„held€business,€shared€equally€byÏhusband€and€wife?€€Perhaps€gender€and€race€identification€of€companies€such€as€soleÏproprietorships€is€feasible.׃×Ý ƒÿÿÝòòÚ  Ú1Ú  ÚóóÝ  Ý×  ×€€But€in€the€case€of€most€contemporary€businesses,€an€attempt€at€suchÐ Ä Ðcategorization€is€the€equivalent€of€forcing€square€pegs€into€round€holes.€€Race€and€gender€areÏpersonal€characteristics€of€individuals,€not€of€corporate€entities.€€Applying€such€labels€to€non„¼natural€persons€thus€has€little€meaning.ÌÌà  àIf€one€attempts€to€bypass€this€problem€by€instead€assessing€the€race€or€gender€of€theÏshareholders,€one€then€runs€into€the€fact€that€almost€any€corporation€in€America€has€significantÏinstitutional€investors.€€Indeed,€many€of€the€largest€shareholders€in€corporations€are€diversifiedÏstock,€mutual,€or€retirement€funds,€which€represent€the€interests€of€literally€millions€of€people.€ÏThese€institutional€funds€cannot€be€categorized€in€terms€of€race€or€gender,€as€the€sheerÏmultiplicity€of€their€constituent€investors€renders€the€task€virtually€impossible.€€Moreover,€tryingÏto€characterize€the€racial€or€gender€composition€of€stockholders€is€like€trying€to€hit€a€€movingÏtarget;€even€if€the€majority€of€shareholders€at€a€certain€point€in€time€are€of€a€particular€race€orÐ (T#& Ðgender,€tomorrow€they€may€not€be.€€Of€course,€it€is€precisely€the€permanent€nature€of€corporations€„„€as€opposed€to€the€ever„shifting€identity€of€the€shareholders€„„€that€fundamentallyÏdistinguishes€those€institutions€from€other€business€arrangements.ÌÌà@ì..ŽàII.ˆÌÌà..àEven€if€classifying€corporate€licensees€in€terms€of€race€and€gender€by€looking€to€the€raceÏand€gender€of€its€individual€shareholders€made€sense,€it€strikes€me€as€highly€inappropriate€forÏgovernment€to€inquire€into€the€racial€and€gender€identities€of€those€shareholders.€€As€it€should€be,Ïthese€factors€have€absolutely€no€bearing€on€a€person's€ability€to€buy,€sell,€or€hold€stock.€ÏAccordingly,€€we€surely€would€find€it€chilling€if€the€government€wanted€to€know€and€record€aÏperson's€race€or€gender€òòprior€toóó€their€purchase€of€stock€interests.€€It€is€no€less€chilling,€I€submit,Ïfor€the€government€to€want€to€know€such€information€òòsubsequent€toóó€purchase.€€Whether€doneÏbefore€or€after€the€investment,€documentation€of€the€racial€and€gender€identity€of€corporateÏshareholders€is€a€highly€invasive€measure€that€I€do€not€believe€furthers€any€legitimateÏgovernmental€interest,€since,€as€discussed€above,€the€race€and€gender€of€these€people€is€whollyÏirrelevant€to€their€ownership€of€the€stock.ÌÌà@ì..làIII.ˆÌÌà..àWe€have€no€specific€statutory€authority€to€collect€this€information.€€Contrary€to€theÏassertion€of€this€item,€òòsee€supraóó€at€para.€102,€collection€of€this€information€is€in€òònoóó€way€necessaryÏto€fulfill€our€obligations€under€section€257.€€That€section€speaks€only€of€entrepreneurs€and€smallÏbusinesses,€not€of€minorities€and€women,€òòseeóó€47€USC€section€257(a)€(requiring€report€within€15Ïmonths€of€February€8,€1996,€on€market€entry€barriers€"for€entrepreneurs€and€other€smallÏbusinesses"),€nor€does€the€Commission€purport€to€be€collecting€this€information€for€use€in€anyÏactual€section€257€study.€€Finally,€section€257€is€about€barriers€to€entry€"in€the€provision€andÏownership€of€telecommunications€services€and€information€services,"€òòid.óó,€not€broadcasting.ÌÌà..à€Similarly€inapposite€is€section€309(j),€which€by€its€terms€does€not€require€anything€in€theÏway€of€regulation€but€states€that€the€Commission€must€"seek€to€promote"€the€dissemination€ofÏlicenses€among€many€applicants,€"including"€minority€groups€and€women.€€òòId.óó€section€309(j)(3).€ÏFurthermore,€as€the€item€itself€acknowledges,€that€aspirational€language€applies€only€"inÏimplementing€the€competitive€bidding€requirement,"€òòsupraóó€at€para.€101,€of€the€1997€BalancedÏBudget€Act.€€Section€309(j)€thus€is€not€an€untethered€mandate€to€"further€opportunities€forÏminorities€and€women€in€broadcasting,"€òòid.óó,€but€rather€a€directive€for€purposes€of€rulemakingÏunder€section€309€„„€a€task€that€no€one€suggests€is€attempted€here.ÌAnd,€if€309(j)€did€provide€a€basis€for€the€collection€of€ownership€information€in€non„auctionÏcontexts,€we€should€not€omit€from€consideration€the€other€entities€specifically€mentioned€in€thatÏprovision,€"small€businesses"€and€"rural€telephone€companies."€€€ÌÌà..àAs€for€the€asserted€goals€of€the€information€collection€„„€"to€assess€the€need€for,€òòandÏsuccess€ofóó,€programs€to€foster€opportunities€minorities€and€females€to€own€broadcast€facilities"Ïòòsupraóó€at€para.€101€(emphasis€added)€„„€the€item€does€not€identify€any€actual€ownership€programsÏthat€it€intends€to€assess.€€In€fact,€many€of€the€ownership€programs€discussed€in€the€original€notice€on€this€issue,€such€as€the€minority€tax€certificate,€no€longer€exist.€€It€is€thus€not€at€all€clear€whatÏprograms,€if€any,€will€actually€be€monitored€for€effectiveness.€€Assuming€such€programs€exist,€weÏnevertheless€cannot,€as€some€commenters€suggest,€use€this€information€to€make€regulations€basedÏon€"fair€representation,"€òòid.óóat€para.€97òò€óó„„€òòi.eóó.,€proportional€representation€for€its€own€sake€„„Ïwhich€is€precisely€what€Equal€Protection€caselaw€prohibits.€€As€I€have€stated€previously,€weÏshould€not€require€licensees€to€provide€us€with€information€unless€we€have€an€identifiable,Ïstatutorily„authorized€purpose€for€its€use.€€€Every€time€we€add€to€filing€burdens,€we€increase€costsÏto€regulated€entities.ÌÌà..àWhile€the€item€concludes€that€this€requirement€imposes€no€undue€burden€on€licenseesÏbecause€"they€will€not€be€required€to€obtain€information€from€anyone€whose€interests€are€notÏalready€reportable,"€òòid.€óóat€para.€100,€that€is€only€part€of€the€story.€€The€entities€with€attributableÏinterests€themselves€may€be€reportable,€but€the€task€of€then€identifying€them,€a€group€that€couldÏbe€very€large,€€based€on€race,€ethnicity,€and€gender€within€the€meaning€of€our€(less€than€precise)Ï"Instructions€for€Completion€of€FCC€Form€395„B€Broadcast€Station€Employment€Report"€is€aÏheavy€administrative€burden€indeed.€€While€a€licensee€may€be€able€to€look€at€employees€and€guessÏtheir€race€or€gender€or€ask€them€how€their€community€regards€them,€òòsee€id.€óóat€n.€180€("TheÏdetermination€of€race,€ethnicity€and€gender€.€.€.€may€be€made€visually,€from€post„employmentÏrecords€or€in€accordance€with€what€the€person€is€regarded€as€belonging€[òòsicóó]€in€the€community"),Ïa€licensee€cannot€always€readily€see€or€discuss€such€things,€which€are€generally€not€otherwiseÏdocumented,€with€its€significant€shareholders.€€Will€broadcast€corporations€have€to€ask€investorsÏto€identify€their€race€and€gender€on€stock€purchase€orders?€€Will€this€create€other€legal€problemsÏfor€these€companies?€€How€does€the€licensee€keep€track€of€this€constantly€changing€information?€ÏThe€task€of€racially€and€sexually€"categorizing"€shareholders,€€òòid.óó€at€para.€104,€which€theÏCommission€today€requires€broadcast€licensees€to€do,€is€messy,€potentially€legally€hazardous,€andÏcertainly€indelicate.ÌÌà@ì..hàIV.ˆÌÌà..àThis€is€a€curious€time€for€the€Commission€to€be€making€this€change€in€its€ownership€forms.€ÏNotably,€the€issue€of€whether€to€require€race€and€gender€identification€on€annual€reports€was€òònotóóÏpart€of€the€Notice€of€Proposed€Rulemaking€on€the€streamlining€of€mass€media€applications.€€òòSeeÏIn€the€Matter€of€1998€Biennial€Regulatory€Review,€Streamlining€of€Mass€Media€Applications,ÏRules,€and€Processesóó,€13€FCC€Rcd€11349€(1998).€€That€matter€was€raised€in€an€entirely€separateÏproceeding,€one€that€has€lain€dormant€for€almost€six€years.€€òòSee€In€the€Matter€of€Policies€andÏRules€Regarding€Minority€and€Female€Ownership€of€Mass€Media€Facilitiesóó,€10€FCC€Rcd€2788Ï(1995).€€Why€did€the€Commission€choose€now€to€resurrect€this€one€aspect€of€that€separateÏproceeding€and€wrap€it€into€this€one?€€Could€it€be€that€the€D.C.€Circuit's€decision€in€òòLutheranÏChurch„Missouri€Synod€v.€FCCóó,€141€F.3d€344€(1998),€òòrehearing€deniedóó€(Sept.€15,€1998),€hasÏtied€the€Commission's€hands€in€terms€of€information€collection€on€race€and€gender€under€the€now„¼invalidated€Equal€Employment€Opportunity€("EEO")€rules?€€ÌÌà..àUnfortunately,€the€timing€of€the€adoption€of€this€amendment€to€the€annual€reports€raisesÏthe€unseemly€appearance€that€this€action€is€a€back„door€attempt€to€do€what€òòLutheran€Churchóó€Ñ#€Xd#Ñmight€seem€to€limit€and€what€the€Commission€òòitselfóó€has€declined€to€do€in€light€of€that€decision.€ÏòòSeeóó€òòIn€the€Matter€of€Suspension€of€Requirement€for€Filing€of€Broadcast€Station€AnnualÏEmployment€Reports€and€Program€Reportsóó€(released€September€30,€1998)€(discontinuingÏregulation€requiring€broadcasters'€to€file€annual€employment€and€other€reports€listing€race€andÏgender€data).€€If€it€is€"advisable,"€òòid.€óóat€para.€2,€to€discontinue€data€collection€procedures€on€theÏrace€and€gender€of€licensees'€employees,€then€it€might€seem€imprudent€to€collect€information€onÏthe€race€and€gender€of€licensees'€shareholdersòò.óó€€Although€the€Commission€does€not€claim€toÏcollect€the€instant€information€pursuant€to€authority€under€the€defunct€EEO€rules,€there€isÏsignificant€tension,€on€a€broader€level,€between€these€two€decisions.ÌÌà..àAlso,€the€Notice€of€Proposed€Rulemaking€on€minority€and€female€ownership€òòpredatedóó€theÏlandmark€judicial€decision€in€òòAdarand€v.€Pena,€óó515€U.S.€200€(1995)òò,€óóand€the€application€of€thatÏcase€in€òòLutheran€Churchóó.€€Much€of€the€justification€in€that€NPRM€for€the€race„€and€gender„¼specific€policies€contemplated€therein,€as€well€as€the€theoretical€link€between€ownership€andÏprogramming€that€it€relied€upon,€have€been€called€into€serious€doubt€by€those€cases.€€òòSee,€e.g,€InÏthe€Matter€of€Policies€and€Rules€Regarding€Minority€and€Female€Ownership€of€Mass€MediaÏFacilitiesóó,€10€FCC€Rcd€at€para.€2€(citing€as€support€òòMetro€Broadcasting€Inc.€v.€FCCóó,€497€U.S.Ï547€(1990),€which€was€overrruled€in€part€in€òòAdarandóó).€€Given€the€subsequent€undermining€ofÏmuch€of€the€original€theory€of€the€NPRM,€I€would€not€have€gone€to€final€order€on€this€proposedÏrule€without€further€notice€and€comment.€€€€òòóóÌÌà..àà..àà..àà..àà..à*à..à*à..à*ÌÌà..àFor€the€foregoing€reasons,€I€would€not€require€broadcast€licensees€to€attempt€to€defineÏthemselves,€or€to€document€their€shareholders,€in€terms€of€race,€ethnicity,€or€gender€on€Form€323.