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                            Before the
                FEDERAL COMMUNICATIONS COMMISSION
                      Washington, D.C. 20554


In the Matter of                   )
                              )    MM Docket No. 97-138
Review of the Commission's Rules        )    RM-8855
regarding the main studio and           )    RM-8856
local public inspection files of             )    RM-8857
broadcast television and radio stations      )    RM-8858
                              )    RM-8872
47 C.F.R.  73.1125,              )
73.3526 and 73.3527                     )


                        Report and Order


Adopted:  July 27, 1998            Released: August 11, 1998

By the Commission:  Commissioners Ness and Tristani issuing a joint statement.


                       Table of Contents

                                                       Paragraph
I.  Introduction                                                 1
II.  Main Studio Rule                                                 2
III.  Local Public Inspection File Rules                                   18
       A.  Location of the Local Public Inspection File                              18
       B.  Contents of the Local Public Inspection File                              27
IV.  Conclusion                                                  59
V.   Administrative Matters                                           60
Appendix A: Final Regulatory Flexibility Analysis
Appendix B: List of Commenters
Appendix C: Rules                            



                        I. INTRODUCTION
                                
     1.   With this Report and Order, we amend our rules regarding the main studio and local public
inspection file for broadcast stations.  In the Notice of Proposed Rule Making  initiating this proceeding, we
proposed that modification of these rules could serve the public interest.  We here conclude that it is possible
to grant broadcast licensees additional flexibility in locating their main studios, together with their public files,
and adhere to the original purpose underlying these rules: to maintain reasonable accessibility of station
facilities, personnel and information to members of the station's community of license, which enables the
residents of the community to monitor a station's performance, and encourages a continuing dialogue between
the station and its community.  In this way, a station is better integrated into the activities of the community
and can be more responsive to local community needs in its programming.  In order to facilitate this interaction,
this Report and Order also amends Sections 73.3526 and 73.3527 of our rules to clarify and update the
required contents of the public inspection files.  The actions we take today are consistent with our ongoing
effort to ensure that our rules continue to serve the public interest without imposing unnecessary regulatory
burdens.  These modifications in no way alter the obligation of each broadcast licensee to serve the needs and
interests of its community.  As the Commission has long recognized, this is a "bedrock obligation" of every
broadcast licensee. 

                     II.  MAIN STUDIO RULE
                                
     2.   Background.  The main studio and public file rules are rooted in Section 307(b) of the
Communications Act of 1934.  Section 307(b) requires the Commission to "make such distribution of licenses,
frequencies, hours of operation, and of power among the several States and communities as to provide for a
fair, efficient, and equitable distribution of radio service to each of the same."  In carrying out this mandate,
the Commission has established a scheme for distributing broadcast service in which every radio and television
station is assigned to a community of license with a primary obligation to serve that community.  A central
component of this scheme requires that a broadcast station's main studio be accessible to its community of
license.  This permits "community residents to readily contact the station to voice suggestions or complaints." 
We have also observed that "[e]xposure to daily community activities and other local media of communications
helps stations identify community needs and interests, which is necessary to operate in today's competitive
marketplace and to meet our community service requirements.  In addition, the studio will continue to be
accessible to community residents participating in those local programs that, at the broadcaster's option, are
produced at the studio."

     3.   At one time, all broadcasters were required to maintain their main studios in their communities
of license.  In 1987, we relaxed the rule to permit a station to locate its main studio outside its community of
license provided it is within the station's strongest signal area - the principal community contour.  In doing
so, we noted that the role of the main studio in the production of programming had diminished over the years,
that community residents often communicate with stations by telephone or mail rather than visiting the studio,
and that the growth of modern highways and mass transit systems had reduced travel times.  We further
observed that the revised rule would allow broadcasters to obtain certain efficiencies, such as co-locating a
station's studio at its transmitter site or moving the studio to lower cost areas.  These factors persuaded us that
relaxing the rule would provide broadcasters greater flexibility while at the same time ensuring that their main
studios continued to be reasonably accessible to the communities they serve.

     4.   In this proceeding, we have reexamined these rules in light of the changes to a number of our
broadcast rules resulting from the Telecommunications Act of 1996 ("1996 Act").  In the NPRM initiating this
proceeding, we stated that we were considering revising these rules not only because we received a petition for
rule making which formally requested us to do so, but also because the 1996 Act significantly relaxed the
radio multiple ownership rules and adopted other reforms.  Consistent with these reforms, we sought comment
on ways to lessen the burdens on licensees, particularly those owning multiple stations, by giving them greater
flexibility in locating their main studios.  In addition, we were concerned that because principal community
contours vary so greatly by class of station, restricting the area of location to principal community contours
may be disproportionately restrictive and burdensome for owners of smaller stations.  We emphasized that in
proposing modifications to our main studio rule we in no way sought to alter the "bedrock obligation" of each
broadcast licensee to serve the needs and interests of its community.  

     5.    In the NPRM in this proceeding, we set forth two goals.  Our first goal is to strike an
appropriate balance between ensuring that the public has reasonable access to each station's main studio and
public file and minimizing regulatory burdens on licensees.  Our second goal is to adopt clear rules that are
easy to administer and understand.  In the NPRM, we proposed four options to achieve these goals.  The
first option would require that the main studio be located within the principal community contour of any station
licensed to the community of license in question.   Option two would  require a station to locate its main studio
within a radius of a set number of miles from a common reference point in the station's community of license,
such as the community's city-center coordinates.  Option three would combine the above two approaches: a
station could choose to locate its main studio anywhere in the principal community contour of any station
licensed to the same community, or within a set distance from the community center, whichever it chooses. 
Option four, a market approach, was limited to entities owning multiple stations in a market, and would allow
such entities to co-locate the main studio for their stations at any one of the commonly owned stations, provided
each of the stations is located in the same local market and that the main studio was within some set distance
from the community center.

     6.   Comments.  Over sixty commenters specifically expressed support for modifying the rule
governing the location of the main studio, and eleven suggested deleting the rule entirely.  Fifteen of these
commenters supported a straight mileage standard, with widely varying radius sizes, ranging from 24 to 62
miles from the community center, while twenty supported some type of combination of mileage and contour,
with very little agreement on specifics. With respect to the contour suggestion posed by the NPRM, one
commenter agreed and five others supported variations.  Eleven commenters supported using a market
definition, while eight would leave the decision as to location to licensee discretion.  Finally, four commenters
supported the status quo, including Morality in Media, which specifically opposes any change in the rule.

     7.   Discussion.  We are adopting a rule which combines a signal contour and a mileage standard. 
Specifically, we will allow a station to locate its main studio at any location that is within either the principal
community contour of any station, of any service, licensed to its community of license or 25 miles from the
reference coordinates of the center of its community of license, whichever it chooses.  This approach fulfills
our stated goals.  By establishing a clear, bright line test for determining location of the main studio, it is clear
and easy to administer.  It expands the area in which most licensees may locate their main studios while
maintaining a close connection to the community.  The contour aspect increases the area in which licensees in
communities with multiple stations will be able to choose location, putting all licensees in a community on
equal footing, and the mileage aspect increases the area for smaller radio stations, particularly those providing
the sole local service in a community.  Although this expansion is not limited to co-owned stations, the
increased flexibility it provides should allow many more multi-station licensees to combine the resources of
their jointly-owned stations, which can allow them to better serve the public.  Revising the rule to permit greater
co-location of main studios should also reduce the number of waiver requests we have received from licensees
in the past, which will reduce the burden on both licensees and the Commission.   
 
     8.   At the same time, the standard we are adopting places the main studio in a reasonably 
accessible location to the community of license.  The amended rule maintains broadcasters' obligations under
Section 307(b) to provide service to their communities of license by continuing the main studio's connection
to the community of license.   Our relaxation of the main studio location requirement takes into account the
evidence in the record that more people use remote rather than face-to-face means of communication for routine
contact with their local stations, and that permitting stations greater flexibility in locating their main studios
should not unduly burden the public.

     9.   Increased Flexibility/Reduced Regulatory Burden.  We believe that our new approach will
substantially reduce regulatory burdens consistent with the public interest, and with longstanding Congressional
and Commission policy.  Amendment of the main studio rule is particularly warranted in light of the 1996
Act and its changes to the local radio ownership rules which allow a single entity to own up to eight commercial
radio stations in the largest markets.  The changes we adopt today will open up opportunities for more
licensees owning two or more stations to operate those stations from a centrally located studio/business office
rather than requiring each to maintain a separate main studio for one or more of its commonly-owned stations. 
We believe that these changes will reduce substantially the burdens the previous rule imposed on the licensee,
and can generate savings that can be put to more productive use for the benefit of the community served by the
station.  Numerous commenters who generally favor the combined approach, including the National
Association of Broadcasters ("NAB"), agree that this approach will reduce burdens on stations. 

     10.  We also believe that this amendment of the main studio rule will lessen the disproportionate
effect that the previous rule had on owners of smaller stations.  As pointed out below, the principal community
contour of a broadcast station -- the determinant of the main studio's location  -- varies greatly depending on
a station's channel or class.  High power stations, which have principal community contours as great as 44
miles in radius, have greater flexibility in locating their main studios under the rule than low power stations,
which can have principal community contours as small as 10 miles in radius.  While the current rule serves
to "ensure[] that the main studio is located in the primary reception area of the station," we believe that the
rule we adopt today addresses the differential treatment between small and larger stations, assures that the main
studio remains in the primary reception area of a station licensed to the same community, and grants small
station licensees a much wider degree of latitude in choosing main studio locations.

     11.  Reasonable accessibility.  We believe that the combination approach we adopt today will
place each main studio in a reasonably accessible location to the members of the community of license.  The
principal community contour of each station, while varying in size depending on service, channel and class,
is required to cover the community of license, and encompasses the area within which the strongest listenable
signal is broadcast. It is thus the contour most closely linked to the community of license, and will ensure that
the community of license has reasonable access to the studio.  We also agree with commenters' remarks that
this change is reasonable because the public is increasingly likely to contact the station by phone or mail rather
than in person, and this expanded area of location is still limited enough to assure accessibility to the remaining
public through mass transit or modern highways. 

     12.  Our adoption of a 25-mile permissible range as an alternative option for the licensee is based
on a number of factors.  First, the 25-mile standard reflects an approximation of the weighted average of the
principal community contour radii of FM radio and TV stations (actual weighted average: 23.08 miles).  AM
radio station contours, based on frequency, power, radiation and ground conductivity, and conceivably quite
large, were not taken into account because they vary very significantly from station to station.   Second, a 25-
mile radius from city center gives stations a 50-mile diameter (1962.5 square miles) within which to locate the
main studio.  With this standard, citizens at the opposite end of the community would not be expected to have
to travel more than 50 miles to reach the studio, which we believe is a reasonably accessible distance to expect
members of the public to travel, given today's modern transportation and good roads.  Several commenters
generally agree with this approach.  We do not agree with some commenters, such as NAB, or Capstar,
who argue that the distance of the straight mileage standard should approximate the largest possible principal
community contour (44 mile radius, or an 88 mile diameter).  As stated above, the weighted average of the
contours more closely approximates 25 miles rather than the largest possible contour, and the majority of
stations considered in that calculation are FM radio stations in Classes A through C2 with maximum facilities
with a radius of less than 25 miles. 
     
     13.  Clarity and ease of administration.  As stated above, our second goal in this proceeding is
to adopt clear rules that are easy to understand and administer.  We believe that using the combined approach
fulfills this goal.  The combination of contour and mileage is  clear, easy to apply, and reduces the
discrepancies between low and high power stations.  It also provides a single standard for all television, FM
and AM stations, commercial and noncommercial.  The mileage element is self explanatory.  As NAB claims,
this change lessens the burden on broadcasters and the Commission in comparison to  proposals put forth by
other parties, and does so in a way that gives licensees clear guidance.  Although some parties criticized the
contour approach as being difficult to administer because, for example, the parameters of other stations'
contours might be difficult to obtain, we disagree.  Each station's contours are a matter of public record. 
Licensees, therefore, will have this information available to them to facilitate their decisions as to main studio
location. 

     14.  Alternative proposals.  As noted, some commenters proposed variations to the rule we adopt
today, some of which would further relax the rules, while others would be more restrictive.  As an initial
matter, some commenters suggest that we delete the main studio requirement altogether.  We continue to believe
that the main studio requirement is necessary to ensure that broadcast stations are reasonably accessible to the
communities they serve, which, as described in paragraph 2 above, provides important public interest benefits.
     
     15.  We also are not persuaded by the alternatives advanced by other commenters because those
proposals provide relief to fewer stations and could, in some cases, make the studios less accessible than the
rule we adopt today.  We are satisfied that use of principal community contours or the mileage standard will
give stations ample area within which to locate their main studios.  ABC, Barnstable, Inc. ("Barnstable") and
others suggest that we require location of the main studio within the principal community contours of any
mutually overlapping co-owned stations.  We believe that this approach would benefit only the licensees of
multiple stations, and could place the main studio location well beyond a reasonably accessible location to the
station's community of license.  Other suggestions include defining the permissible area to locate the main
studio by TV Grade B contour, designated market area, Arbitron radio market, metropolitan statistical area,
or "protected service contour," i.e., the .5 mV/m contour for AM and 1 mV/m contour for FM.  We believe
that these suggestions would potentially place the main studio at too distant a location from the community to
be considered reasonably accessible.

     16.  We also decline to adopt the proposal of the Office of Communication of the United Church
of Christ, the Media Access Project, Center for Media Education, and Minority Media and
Telecommunications Council (collectively referred to as"MAP") which would more restrictively permit location
within any contour of any station licensed to the community, or 25 miles from the community center, whichever
is less.  MAP favors the contour aspect of the rule we adopt today, stating that a modest relaxation of the
rules may promote minority ownership and employment because it may encourage exurban stations to locate
closer to urban areas.  However, MAP claims that in-person visits would be deterred if the main studio were
allowed to be located further away than 25 miles.  It points to recent changes to the Commission's rules that
place increased reliance on citizen involvement in the licensing process with respect to children's television and
to political candidate enforcement of lowest unit rate provisions.  While we are aware of the need for
reasonable accessibility in order to facilitate citizen involvement in the licensing process, MAP's proposal to
"cap" the allowed distance for a licensee to locate its main studio at 25 miles would make the new rule more
restrictive than the current rule for most TV and many radio stations.  MAP argues that licensees should expect
to incur additional costs in maintaining accessible studios as reasonable expenses associated with doing
business as broadcasters.  It states that broadcasters should assume these costs in exchange for the free use of
the public airwaves, and "other governmentally granted benefits."  We have concluded that MAP's positions
impose too strict a standard of accessibility given current means of communication and transportation, and does
not adequately consider regulatory burdens.  This is inconsistent with our stated goals to balance accessibility
with the burdens of our regulations.  We believe that the rule we have adopted today strikes the appropriate
balance in the public interest.

     17.  We also reject another variation supported by Morality in Media, which argues that the
Commission should continue to require each station to locate its main studio in the community of license
because in-person visits will be deterred by a too distant main studio.  Although we are conscious of the
concerns raised in Morality in Media's comments, we note that its comments were based on a misapprehension
of the current rule.  As noted above, when the rules were amended in 1987, we relaxed the rule to allow location
within the principal community contour after determining it was no longer feasible to require stations to
continue to locate their main studios in the community of license.  As we have stated, we have formulated the
rule we adopt herein based on our balance of the need for reasonable access and the reduction of regulatory
burdens on licensees, addressed specifically above.  


            III.  LOCAL PUBLIC INSPECTION FILE RULES
                                
A.  Location of the Local Public Inspection File

     18.  Background. The Commission's rules generally require a broadcast station to maintain its local
public inspection file at its main studio, when the main studio is located within the station's community of
license, or at any accessible place in the community of license (e.g., an attorney's office or local public library)
if the station's main studio is located outside the community.   As with the main studio rule, reasonable access
to the public inspection file serves the important purpose of facilitating citizen monitoring of a station's
operations and public interest performance and fostering community involvement with local stations.  This in
turn helps ensure that stations are responsive to the needs and interests of their local communities.

     19.       In the NPRM, we sought comment on the proposals and Comments of Apex, et al., Lauren
Colby, Hardy and Carey, and Salem Communications Corp. requesting amendment of our rules to permit both
commercial and noncommercial stations to locate their local public inspection files at their main studios,
wherever located.  This would place the public file at the same "reasonably accessible" location as the main
studio, even when the main studio is outside the community of license.  We also proposed that an applicant for
a new station or change of community  maintain its file in the proposed community of license or at its proposed
main studio.  In so proposing, we recognized that allowing co-location outside the community of license would
alter our 1987 determination that the public file should be kept in the community of license in order to "assure
meaningful public participation in the licensing process."  In conjunction with the above proposals, we sought
comment on accommodations to the public when the public file is located outside the city of license, such as
those proposed by Salem Communications Corp., which would require any licensee with a main studio outside
the community of license to: (1) provide free transportation to the main studio; (2) deliver the public file to a
location specified by the requestor; or (3) provide specified documents by mail. 

     20.  Comments.  52 of 70 commenters specifically state that they believe the public file should be
kept at the main studio, wherever located, with a few others, including Morality in Media, arguing for retention
of the current requirement to keep the public file within the community.  Most disagree with the suggested
accommodations.  One commenter suggests deleting the rule.

     21.  Discussion.  Based on the proposals and comments before us, we believe that it is in the public
interest to amend the public file rules, Sections 73.3526(d) and 73.3527(d) of our rules, to provide that the
licensee of a station locate its public file at its main studio, wherever located.  In addition, the rules we adopt
today provide that an applicant for a new station or change of community locate its public inspection file in
the proposed community of license or at its proposed main studio.  We also are giving licensees the option of
maintaining all or part of their public file in a computer database rather than in paper files, and are encouraging
licensees who chose this option to post their "electronic" public files on any World Wide Web sites they
maintain on the internet.  Public files available over the internet can be viewed from homes, schools, and
libraries with internet connections, thereby greatly increasing the number of sites where such files can be
accessed.     
     
     22.  We believe that having a licensee maintain its public file at its main studio will fulfill our
stated goals.  This rule is clear and easy to administer.  It also takes into account the fact that many members
of the public contact stations by telephone, and the accommodation we set forth below will facilitate access to
the public file by permitting individuals to call a station and request that it mail portions of the file to the
caller's home or office.  As several commenters point out, the main studio is the most logical and likely place
for the public to expect to find a station's public inspection file.   It is listed in the telephone book, and is
usually well marked by commercial signage.  These factors are likely to increase the convenience to the public
in some cases, and could also facilitate public involvement at the station.  The public would also be better
served if the file is maintained and stored under the direct control of the station.   Not only would there be
greater assurance that the file is kept up-to-date and in proper order, but also the licensee would be able to
provide assistance to those researching the public file, if necessary.  As some commenters point out, collocating
the public file and main studio will reduce the burdens on licensees who previously were required to maintain
an off-premises public file in the community of license because their main studios are outside the city limits
of the community of license.  Moreover, we note that co-location of the main studio and public file will aid
same-market, multiple-station owners by allowing them to channel their resources in ways that would better
serve the public.

     23.  Commenter Thomas Osenkowsky suggests that we delete the public file requirement, and
require stations to maintain routine station records electronically.  We continue to believe the local public file
serves a vital public interest benefit.  Although we encourage stations to maintain files electronically, see supra,
we will not require them to do so given the burdens this could impose on members of the  public without
computer access or ability, and on stations, given current technology and stations' current computer
capabilities.   
 
     24.   Accommodation.  We will require stations to make available, by mail upon telephone
request, photocopies of documents in the public file, including our revised version of "The Public and
Broadcasting" (as drafted by the FCC staff; see infra) which shall also be placed on the FCC's internet site. 
 The station may require the person requesting the copies to pay the reasonable cost of photocopying and the
station will pay postage.  To facilitate requests for public file documents over the telephone, we will require
stations to provide callers, if they wish to receive one, a copy of the new edition of "The Public and
Broadcasting" free of charge.  This description will assist callers in identifying documents they may ask to be
sent to them by mail.  We will require licensees to assist callers in this process and answer questions they may
have about the actual contents of the station's public file.   For example, stations, if asked, should describe to
a caller the number of pages and time periods covered by a particular ownership report or children's television
programming report, or the types of applications actually maintained in the station's public file and the dates
they were filed with the FCC.  We also encourage stations to place the descriptions of their public files on any
Internet home page that they maintain. We believe that this accommodation for the public should ensure that
public file materials continue to be reasonably accessible to all members of the public.  The revised "The Public
and Broadcasting" should facilitate this access by educating the public about the contents of the file.  Various
commenters agree that accommodations of this general nature would be appropriate under some
circumstances.  

     25.  We reject the other accommodations mentioned in the NPRM and proposed by commenters. 
In addition to the accommodations raised in the NPRM, accommodations supported by commenters include
courier, fax or e-mail delivery, toll-free telephone service, or requiring stations to make their studio available
at non-business hours by appointment.  Some commenters suggest that the actual method of provision of
public file access be voluntary or left to licensee discretion, but within a set period of time from the time of
the request.  We have considered all of the alternate suggestions and have determined that the accommodation
we require in this rule fulfills our stated goals of balancing public access with regulatory burden and ease and
clarity of administration.   As noted, toll-free telephone service is already required.  We believe that requiring
stations to provide transportation to requesters, to transport the public file to them or open the main studio
during non-business hours would be unnecessarily burdensome to station owners.  Finally, Noncommercial
Educational Licensees request that we place a limit on the number of requests to avoid harassing requests. 
We will not adopt such a limit; there is no evidence in the record that public requests for information are made
in bad faith to any significant extent, or that stations are being overwhelmed by such requests.  A licensee, may,
of course, seek a waiver or special relief from the Commission in the event such circumstances arise.  

     26.  Several commenters specifically disagree with making any accommodation, including the one
we have adopted.  Most cite the undue burden on broadcasters, discouragement from locating outside the
community, and the ease with which the accommodations could be abused.  One specifically notes that
allowing requests by phone rather than in-person could encourage frivolous requests.  We believe that the
rules we adopt today address these concerns.  First, a requestor is entitled to "The Public and Broadcasting,"
which should provide adequate guidance to make an intelligent request for information.  In addition, the rules
regarding the public file's contents in their revised form will be much easier to understand and administer for
both licensees and the public seeking information.  Finally, we expect that requiring a person seeking
documents from a station's public file to pay the reasonable expenses of photocopying should reduce the
possibility for abusive and frivolous requests.

B. Contents of the Local Public Inspection File

     27.  Background.  In the NPRM, we sought comment on updating our requirements regarding the
materials that a station must place in its public inspection file.  Currently, both commercial and noncommercial
broadcast licensees must maintain a local public inspection file containing copies of certain applications and
related materials filed by the station with the FCC, ownership reports, employment reports, and a list of
programs aired by the station during the previous three months that provided its most significant treatment of
community issues (the "issues/programs list").  Commercial broadcast licensees must also retain written
comments and suggestions received from the public regarding operation of their stations.  In addition,
broadcast licensees must maintain a separate public file concerning requests by political candidates for
broadcast time on the station, and commercial television licensees must maintain a file containing information
regarding the educational and informational programming they air for children.

     28.  We invited comment in the NPRM on a number of specific proposals designed to eliminate out-
of-date provisions in the public inspection file rules or to clarify particular aspects of the rules.  We also asked
whether, in the case of an assignment of license, assignees should be relieved of their current obligation to
ensure that the public file contains all of the documents previously required to be maintained in the file by the
assignor.  In addition, we proposed to clarify the obligation of commercial licensees to retain in the public
file copies of "written communications and suggestions" received from the public.  We indicated our wish to
clarify that such "written comments and suggestions" include electronic mail messages transmitted to the station
via the internet, and invited comment on this proposed clarification.

     29.  We proposed a number of revisions to the retention periods for the materials in the public
inspection file to update and clarify those provisions.  We stated our desire to provide clear guidance to
licensees and the public regarding retention period requirements, facilitate meaningful public participation in
monitoring licensee compliance with our rules and policies, and minimize unnecessary paperwork burdens. 
We sought comment on whether any of the public file retention periods can be shortened to reduce regulatory
burdens without depriving the public of useful, relevant information, and on other ways in which the retention
period requirements can be clarified and streamlined.  We also sought comment on giving stations the option
of maintaining all or part of the public inspection file in a computer database rather than in paper files, noting
that this and other uses of computer technology could reduce stations' paperwork burdens while at the same
time improving public access to information about the station.

     30.  Updates to the Rules.  In the NPRM, we proposed the following specific amendments to
update and clarify the public inspection file rules: 

     (a) We proposed to delete the requirement that licensees maintain in their public file a copy of the 1974
manual entitled "The Public and Broadcasting," noting that this manual is long out-of-date.

     (b) We proposed to delete the reference in Section 73.3526(a)(11) of our rules regarding the
maintenance of reports required under our financial interest and syndication rules, which have been repealed.

     (c) We stated that we will correct the cross-reference in the public inspection file rules to the rule
section governing a licensee's political file.

     (d) We proposed to delete the note set forth under Sections 73.3526(a)(1) and 73.3527(a)(1) of the
public inspection file rules exempting from the rules certain applications filed on or before May 13, 1965.  We
noted that, even without the exemption, the retention periods for maintaining such applications have long since
expired.  

     31.  Comments.  The great majority of commenters that addressed these proposals to revise our
public inspection file requirements supported them, generally viewing them as long overdue.  MAP, however,
strongly opposed our proposal to eliminate the requirement that stations retain a copy of "The Public and
Broadcasting," arguing that the manual provides a useful, plain language description of citizens' rights and
other important information.  According to MAP, it would be "nothing short of outrageous" to deprive the
public of this document in view of the Commission's increased reliance on public monitoring of licensee
performance.  Instead of deleting this requirement, MAP argues that the Commission should update the
manual to provide current information and require broadcasters to replace the 1974 edition with a new one.

     32.  Discussion.  We will adopt the three specific proposals, described in (b) - (d) above, to amend
our public inspection file rules.  No commenters objected to these revisions, and they will serve to clarify and
make current licensees' obligations under these rules.  With respect to our first proposal regarding the 1974
manual "The Public and Broadcasting," we will no longer require licensees to maintain this out-of-date
document.  But we concur with MAP that this volume should be replaced with an updated version.  The new
manual will describe our new requirements regarding the contents of the public file, and discuss ways in which
the public can help monitor licensee performance.  We believe that this updated manual will provide a useful
description of the documents that are available for public inspection, and will facilitate interaction between
licensees and their communities that may lead to improved service to the public.  The Commission staff will
prepare the manual, and issue a Public Notice notifying licensees when it is complete.  The Commission will
place the new manual on its World Wide Web site on the internet, where it can be accessed and downloaded
by licensees and the public.  We will require all commercial and noncommercial licensees to replace their 1974
manuals with the updated version when it is available.  
     33.  Assignment of License.  Our current rules provide that after the Commission approves an
application for assignment of license and the transaction has been consummated, the assignee is responsible
for ensuring that the public file contains all the documents previously required to be maintained in the file by
the assignor.  We stated in the NPRM that we had received a petition for rule making requesting that the
Commission amend the public file rule to delete this requirement.  The petitioner argued that the proposed
change is warranted because the public file need only contain information concerning the current licensee or
permittee, as the public has no practical use for information regarding the ownership, programming, and EEO
practices of a station's prior licensees.  The petitioner also contended that a new licensee should not bear the
burden of locating documents missing from a prior licensee's public file.  We stated our belief that there is merit
to these arguments regarding licensee-specific information, but noted that there may be information in the
public file relevant to a station's facilities that is not licensee-specific (e.g., engineering material in a
modification application filed by the assignor) and therefore should be maintained by the assignee.  We invited
commenters to address this issue.

     34.  Comments.  A large number of commenters agreed that an assignee should not be required to
retain materials relating to the operations of the previous owner on the ground that information regarding a
prior licensee is irrelevant to current station operations.  These commenters also argued that assignees should
not be held responsible for correcting deficiencies in the assignor's files, as missing documents are often costly
or impossible for the assignee to obtain.  Generally, these commenters accepted the view that assignees should
be held responsible for retaining copies of any documents that do relate to current operations, such as facilities
modifications.  NAB asked that the FCC identify those documents assignees will be held responsible for
obtaining from the assignor. 

     35.  In contrast to these views, MAP and a number of other broadcaster commenters argued that
assignees must be held responsible for maintaining the assignor's files so that documents remain in the public
file for the full period required by the Commission's rules.  According to these parties, relieving licensees of
this responsibility would encourage them to fail to maintain files in the belief or knowledge that the station will
be sold in the not-too-distant future.  MAP contends that holding the assignee responsible in this situation is
increasingly important as the number of station transfers and the number and size of group owners increases. 
MAP also argues that, if an assignee is permitted to destroy files obtained from the assignor, a group owner
coming under suspicion of violations of the Commission's rules at one of its stations could sell one or more of
its other stations to avoid detection of further violations of the Commission's public file, programming,
ownership, or other rules.  A number of commenters advocated that the successor licensee be held responsible
for those contents required to be in the public file for a two year period preceding consummation of the
assignment to them or back to the previously granted renewal, whichever is shorter.  MAP states that it would
not object to immunizing an assignee from liability for incomplete recordkeeping on the part of the assignor,
but would require assignees to retain public file documents obtained from the assignor for the duration required
by the Commission's rules.

     36.  Discussion.  In the case of an assignment of license, we will continue to require the assignee
to retain public file documents obtained from the assignor for the period required by our revised rules. 
However, we will not hold assignees responsible for correcting any omissions in the file that exist at the time
of the assignment.  We believe that, on balance, requiring licensees to retain the assignor's public file intact is
a minimal burden which is outweighed by the benefit to the public of continued access to these materials for
the entire retention period.  We are persuaded by those commenters who argued that relatively little effort and
expense is required to simply retain public file materials obtained from an assignor, rather than disposing of
all or part of those materials.   Documents that relate to the operations of a previous licensee can be relevant
and useful in the context of a challenge to or investigation of the qualifications of that licensee to hold other
FCC authorizations.  In view of the large number of station sales in recent years, especially in the radio market,
and the longer eight-year license period, it increasingly occurs that a station is assigned to a new owner before
the license term is complete.  To ensure that the previous owner's record is available for review, we will require
that the file inherited from the assignor be retained for the full period specified by our rules.

     37.  While we will continue to require an assignee to retain records obtained from an assignor, we
will not hold licensees strictly liable for omissions created by predecessors.  However, we expect parties
engaged in the purchase of a station to make a good faith effort to correct deficiencies in the assignor's file that
exist at the time of the assignment through the due diligence process typically undertaken by a purchaser of a
station.  Given the other rule changes we are adopting today, we expect that as a general matter there will be
fewer instances where a licensee's public file will be missing required documents, whether at the time of an
assignment or any other time.  In particular, we are making revisions today both to reduce the number of
documents required to be maintained in the public file and to clarify the retention requirements.  This should
help reduce the number of instances in which the public file is found to be incomplete.  Moreover, the revisions
we are making today to our rules governing public file location should improve management and maintenance
of the file by licensees, further facilitating compliance (see para. 21, supra).  We emphasize that all licensees
have a duty to comply with our public file rules, and expect that licensees will find this obligation easier to meet
in light of the revisions we are making today.    

     38.  Electronic mail.  We proposed in the NPRM to clarify the requirement that "[a]ll written
comments and suggestions received from the public by licensees of commercial AM, FM, and TV broadcast
stations regarding operation of their station shall be maintained in the local public inspection file."  We stated
our wish to clarify that such "written comments and suggestions" include electronic mail messages transmitted
via the internet.  We noted that internet "e-mail" is an increasingly popular means of communication, and
invited comment on this proposed clarification.

     39.  Comments.  Comments on this proposal were mixed.  Parties that opposed requiring stations
to retain e-mail messages generally argued that such communications are too easily made and  duplicated, and
that the volume of such messages is increasing, presenting the possibility that stations could be flooded with
frivolous, irrelevant, or harassing comments or suggestions.  Some contended that because e-mail is often
delivered directly to the intended recipient, it generally bypasses any central mail sorting system, thus making
it difficult to collect, sort, and direct to the public file.  Those opposed to the proposal also argued that
requiring communications to be in traditional letter form was not onerous and established a minimal, acceptable
standard of formal effort for communications required to be maintained in the public inspection file.  

     40.  Commenters who supported the Commission's proposal generally argued that viewer concerns
expressed in e-mail messages were just as valid as those expressed as printed communications.  Some also
pointed out that, with the advent of word processors and high speed copiers, printed letters are almost as easy
to create and duplicate as e-mail.  Supporters of the proposal also argued that stations should have the option
of retaining e-mail in electronic form as long as it is easily made available to the public.

     41.  Discussion.  We will adopt our proposal to clarify that our rules require the retention by
licensees of e-mail messages as well as traditional printed communications.  We concur with those commenters
that expressed the view that there is no fundamental distinction between e-mail and printed letters that would
justify treating those forms of communication differently for purposes of this rule.  Both means of
communication can be used to convey important comments or suggestions regarding programming, and should
be treated in a similar fashion.  We will give licensees the option of retaining e-mail messages either in a
computer or a paper file. Rather than printing out hard copies of these e-mail communications, licensees that
choose the computer file option may provide the public upon request with a computer diskette containing copies
of the e-mails received by the station, or may make available to the public a computer terminal where these
communications may be accessed.  In the case of identical e-mails or letters received from different parties,
we will also give licensees the option of retaining, either on paper or in a computer file, a single sample copy
of the e-mail or letter as well as list of all parties that sent identical e-mails or letters to the station.     

     42.  For reasons of clarity, rather than retaining our rules governing the retention of letters received
by commercial broadcast stations in a separate rule section,  73.1202, we have moved those rules to 
73.3526, our public file rule section for commercial broadcast stations.  The obligation to retain letters received
from the public is fundamentally a public file obligation, and should therefore be part of the public file rules
themselves.

     43.  Retention requirements.  We also sought comment in the NPRM on whether the retention
periods for the materials in the public inspection file and political file should be revised to update and clarify
those provisions.  At a minimum, we proposed to revise those retention periods tied to the broadcast license
term to reflect the new license term of eight years.  We also proposed to amend the rules to require that all
documents required to be retained for the license term be retained not only for the eight-year term but until the
grant of the renewal application is final, i.e., no longer subject to reconsideration, review, or appeal either at
the FCC or in the courts.  In addition, we sought comment on whether any of the public file retention periods
can be shortened to reduce regulatory burdens.  In particular, we noted that we currently require that certain
applications filed with the FCC be retained until "the expiration of one license term ... or until grant of the first
renewal application of the television or radio broadcast license in question."  We proposed shortening the
required retention period for license assignment and transfer applications and applications for major facilities
modifications to the period in which they are pending before the FCC or the courts.  We noted that this is the
period of time these applications are of particular relevance to the public, and that after this period other public
file materials such as ownership reports may provide an alternative source for the information contained in
these applications.  Finally, we also sought comment on other ways to clarify and streamline our retention
period requirements, and on the appropriate retention periods for letters received from the public, annual
employment reports, and annual ownership reports.

     44.  Comments.  Commenters generally agreed that our public file retention requirements are
unnecessarily complex and need clarification.  For example, a number of parties noted that the current rules
are unclear regarding the length of time licensees must keep annual ownership and employment reports in the
file.  Commenters, including a number of broadcasters, also generally supported the Commission's proposal
to update the rules by revising those retention periods tied to the broadcast license term to reflect the new eight-
year term, and to clarify that documents required to be retained for the license term be retained until grant of
the renewal application is final.  A large number of commenters also expressed the view that the current rules
have unnecessarily long retention periods for certain documents, or require retention of documents which have
no useful purpose.  Finally, several concurred with the Commission's proposal that assignment and transfer
applications and applications for major facilities modifications be retained only during the period they are
pending before the Commission or the courts.  

     45.  In contrast to comments in support of streamlining public file requirements, a few commenters,
including MAP, opposed reducing either the number of documents licensees are required to place in the public
file or the period they must be retained.  These commenters argued that the cost savings resulting from such
rule changes would be minimal, given the relatively small amount of time required to place documents in the
file and the relatively small amount of space occupied by the file.  They contended that eliminating public
file requirements or the duration documents must be kept in the file would compromise the public's and the
Commission's ability to monitor licensee performance.  According to these commenters, the benefits of public
participation in monitoring licensee performance, and the FCC's reliance on such monitoring, far outweigh the
cost to licensees of complying with current public file requirements.  

     46.  Discussion.  We believe there is significant room for clarification of our public file retention
requirements, and agree with those commenters who argue that some of the current rules are unnecessarily
complex.  We also believe that our public file requirements can be streamlined, either by shortening the
retention period where appropriate or eliminating the retention requirement altogether for documents that are
not useful to the public.  

     47.  As we proposed in the NPRM, for those documents we believe should be retained for the entire
license term (including issues/programs lists and Children's Television Programming Reports), we will update
our rules to reflect the current eight-year license term for both television and radio licenses.  We will also
require that those documents required to be retained for the full eight-year term be retained until the grant of
the renewal application is final, i.e. no longer subject to reconsideration, review, or appeal either at the FCC
or in the courts.  This revision will ensure that those documents we believe should be available to the public
for the entire license term remain available until final action has been taken on the license renewal application,
thus facilitating monitoring of licensee performance by interested parties and their participation in the license
renewal process.  We disagree with those commenters who argued that the retention period for issues/programs
lists, which is now 5 or 7 years based on the former license term for radio and TV stations, be reduced.  The
lists contain information about licensee compliance with public interest obligations which is relevant to the
evaluation of licensee performance at renewal, and must continue to be available throughout the license term
and until final grant of the next renewal application.  Similarly, we decline to reduce the retention period for
Children's Television Programming Reports, as one commenter suggested.  Compliance with our children's
programming requirements is an important issue to be examined at time of renewal.  Consequently, these
reports also must remain available through the entire license term and until final grant of the next renewal
application.
 
     48.  In addition, as we proposed in the NPRM, we have decided to shorten the public file retention
period for most applications filed with the FCC.  Our current rules generally require that all applications be
retained for the term of the license.  The applications subject to this retention period include, for example,
license assignment and transfer applications and applications for major facilities modifications.  As we noted
in the NPRM, and as many commenters agreed, these applications are most relevant to the public during the
period they are pending before the FCC or the courts.  Moreover, much of the information contained in these
applications is available in other public file documents; information about the applicant's ownership structure,
for example, is also available in the ownership reports.  Accordingly, we will require that applications and
related materials be retained in the public file only until final action has been taken on the application, except
that new construction permit applications and applications for assignment or transfer of license that are granted
pursuant to a waiver showing must be retained for as long as the waiver is in effect.  With respect to these
latter applications, the Commission has granted the waiver based, in part, on representations contained in the
application and waiver exhibit.  We believe these applications must remain available to the public for the entire
period the waiver is in effect to ensure the public can assist the FCC in evaluating licensee performance in light
of the representations made in the application and waiver request.  Commenters that addressed this issue
generally agreed that applications granted pursuant to a waiver request should be retained.  Finally, we will
also require that renewal applications granted on a short-term basis be retained throughout the short-term
license period and until completion of the next renewal review.  As the performance of these licensees has lead
to imposition of a short-term renewal sanction, it is especially important that these renewal applications remain
available to the public over the entire, shortened license term.

     49.  Regarding other possible means of streamlining our retention period requirements, we have
concluded that we will require licensees to retain only the most recent, complete ownership report (FCC Form
323) in the public file, together with any subsequent statements filed with the FCC certifying that the current
report is accurate.  The current rule requires retention of all ownership reports for the term of the license.  We
agree with those commenters who argued that the most recent ownership report contains current information
regarding the licensee's ownership structure, and that it is unnecessary to require licensees to retain previous
ownership reports filed during the license term that contain out-of-date information.  In the unusual case that
a member of the public desires access to previous ownership information, these reports can be obtained from
the Commission.  

     50.  To further reduce the paperwork burden on licensees, as suggested by some licensees we will
revise our current requirement that licensees retain in their public inspection files contracts required to be filed
with the Commission under  73.3613 of the rules (relating to licensee ownership and control, including
network affiliation agreements, articles of incorporation, bylaws, stock agreements, and radio time brokerage
agreements).  Rather than requiring copies of all such contracts to be kept in the public file, we will permit
stations, as an alternative option, to maintain an up-to-date list identifying all such contracts and to provide
copies to requesting parties within seven days.  We believe this revision will reduce the burden on licensees,
and especially on group owners who presently may have to retain multiple copies of the same agreement.  At
the same time, the public will have immediate access to a complete list of such contracts pertaining to the
licensee, and can rapidly obtain any specific documents they wish to review. 
      
     51.  Finally, with regard to communications (including e-mail) received from the public by
commercial broadcasters regarding operation of their station and required to be maintained in the public file
pursuant to current 73.1202 of the rules, we will retain the current three year retention period for such 
communications.  We will not extend the retention period for such letters to coincide with the eight year license
term.  We believe that an eight year retention requirement would be overly burdensome, and that older letters
are less relevant to current licensee performance.  While we will not extend the retention period for such
communications beyond the existing three year term, we decline to shorten the retention period, or to eliminate
the retention requirement altogether, as advocated by some commenters who argued that these letters are rarely
requested by the public or used by the licensee or others in connection with a contested license renewal,
especially in light of the expedited renewal procedures mandated by the 1996 Telecommunications Act.  We
are not persuaded by these arguments, and continue to believe that these letters and e-mails, retained for a
three-year period, can play a helpful role in assisting the public in monitoring station performance.  A member
of the public may, for example, wish to know whether others have expressed similar concerns in letters to the
station during the previous several years.  We consequently believe a three-year retention period for letters and
e-mails is warranted and will help promote a dialogue between stations and their communities.

     52.  In light of our goal to reduce unnecessary paperwork burdens, we will delete the requirement
that letters from the public received by commercial TV licensees be separated into programming and non-
programming subject categories.  The burden imposed on licensees by this requirement seems to outweigh
the relatively minimal benefit to those members of the public interested in reviewing these letters.  Our rules
will still require that licensees maintain a separate file containing letters requesting broadcast time for political
candidates, making these letters more readily available.  In addition, we note that licensees are required to
prepare a summary at time of renewal of any letters they have received regarding violent programming,
thereby assisting members of the public interested in letters received by licensees on this issue.        

     53.  Electronic Public File Option.   We will adopt our proposal to give stations the voluntary
option of maintaining all or part of their public inspection file in a computer database rather than in paper files. 
We encourage, but will not require, stations that elect this option to post their "electronic" public files on any
World Wide Web sites they maintain.  We noted in the NPRM that many stations are equipped with computers
and make information available to the public on their own World Wide Web home pages on the internet. 
Stations that post their "electronic" public files on the World Wide Web  increase the number of locations from
which these files may be accessed.  Such measures can facilitate communication between licensees and their
communities that can lead to better service to the public.  Commenters generally supported giving stations the
option to use computer technology to maintain and improve access to their public file, as long as such use is
voluntary and not required.  As proposed in the NPRM, a station that chooses the option of maintaining an
"electronic" public file will be required to make a computer terminal available to members of the public
interested in reviewing the station's file, and will be required to provide paper copies of such public file
materials upon request.     

     54.  Contents of Local Public Inspection File.  To summarize the actions we are taking today to
update, clarify, and revise our public inspection file rules, following is a list of our revised public file
requirements.  In addition to the revisions discussed above, this list includes certain other revisions and
clarifications addressed in the NPRM and in comments as well as other modifications, more editorial in nature,
designed to shorten and clarify the rules.

               (i) Authorization.  All licensees will be required to retain a copy of their current
authorization, as well as any other documents necessary to reflect any modifications thereto or conditions that
the Commission has placed on the authorization.  Our current rule does not require that authorizations be
maintained in the public file.  This revision will ensure that the public has ready access to the technical
parameters of the station license and any conditions on station operation imposed by the FCC.

               (ii) Applications and related materials.  We will require retention of applications filed
with the FCC only until final action has been taken on the application, except that applications for a
construction permit and applications for assignment or transfer of license granted, in either case, pursuant to
a waiver must be retained for as long as the waiver remains in effect.  In addition, renewal applications granted
on a short-term basis must be retained through the short-term renewal review and until final grant of the next
renewal application.

               (iii)  Citizen Agreements.  As under the current rules, we will continue to require that
a copy of every written citizen agreement be retained in the file for the term of the agreement.

               (iv)  Contour maps.  As under the current rules, we will continue to require that
applicants, permittees, and licensees retain in the file copies of any service contour maps submitted with any
application tendered for filing with the FCC, together with any other information in the application showing
service contours and/or main studio and transmitter location.  These documents must be retained for as long
as they reflect current, accurate information about the station.

               (v) Ownership Reports and related materials.  We will require licensees to retain only
the most recent, complete ownership report (FCC Form 323) and any statement certifying the continuing
accuracy of the report, until replaced by a new, complete report. 

               (vi) List of contracts required to be filed with the FCC.  We will give licensees the
option either of retaining in the public file a copy of all contracts required to be filed with the FCC under
73.3613, as our rules currently require, or of retaining an up-to-date list identifying all such contracts. 
Licensees who choose this latter option will be required to provide copies of such contracts to requesting parties
within seven days.

               (vii) Political file.  We are making no substantive changes to our current political file
requirements.  We decline to reduce the current two-year retention period for records required to be
maintained in the political file, as requested by at least one commenter.  These records are necessary to
permit political candidates and others to verify that licensees have complied with their obligations relating to
use of their facilities by candidates for political office.  We are not persuaded that the current retention period
is overly burdensome to licensees, and believe this retention period provides interested parties necessary and
adequate access to these important records. 

               (viii) Annual employment reports and related material.  We will require retention of
all annual employment reports until grant of the next renewal application becomes final.  The current rule
requires retention of these reports for five years for radio licensees and seven years for TV licensees, based on
the former license terms for these facilities.

               (ix)  "The Public and Broadcasting" manual.  We will require licensees to maintain
in the public file an updated version of this manual, to be prepared by the FCC staff.

               (x) Letters from the public.  As under the current rule, commercial licensees will be
required to retain for a period of three years written comments and suggestions received from the public
regarding operation of their station.  The revised rule will clarify that the rule extends to e-mail communications
as well as letters, and will relieve commercial TV licensees of their current obligation to separate letters into
programming and non-programming subject categories.  For reasons of clarity, the rules governing retention
of letters from the public (currently in 73.1202 of our rules) will be incorporated into our public file rule for
commercial stations (73.3526 of our rules).

               (xi) Material relating to FCC investigation or complaint.  As under the current rule,
licensees will be required to retain material relating to a matter which is the subject of an FCC complaint or
investigation until the licensee is notified by the FCC that the material may be discarded.  The current rule
will be revised, however, to delete the requirement that licensees retain materials related solely to private
disputes, as the FCC does not involve itself in such disputes.   

               (xii) Issues/programs list.  Sections 73.3526(a)(8)(i) and 73.3527(a)(7) require
licensees to prepare a quarterly issues/programs list that must be retained in the public file for the term of the
license (5 or 7 years under the current rule, based on the former license term).  The new rule will require
retention of such lists until grant of the next renewal application becomes final.  

               (xii) Records regarding children's programming commercial limits.  The revised rule
requires retention of such records until grant of the next renewal application becomes final, which is the revised
retention period for children's television programming reports.  The current rule is unclear, requiring retention
of "records sufficient to permit substantiation of the station's certification, in its license renewal application,
of compliance..." with the commercial limits.

               (xiv) Children's Television Programming Reports.  The revised rule will require
retention of such reports until final grant of the next renewal application.  The current rule has a five-year
retention period, based on the former license term. 

               (xv)  Local public notice announcements.  As under our current rules, applicants for
renewal of license must retain in the public file a copy of the local public notice of filing announcement required
by  73.3580 of the rules, which must be retained for the same period of time as the renewal application.

               (xvi) Radio time brokerage agreements.  The revised rule requires retention of such
agreements in the public file until the contract expires.  The current rule has not been updated to reflect the
specification of this retention period in the 1992 radio ownership rule Report and Order.  

               (xvii)  Must-carry or retransmission consent election.  As under our current rules,
statements of a commercial TV station's election with respect to either must-carry or retransmission consent
must be retained for the duration of the three year election period to which the statement applies.

     55.  Noncommercial Educational Stations.  Section 73.3527 of our rules governing public file
requirements for noncommercial educational stations is very similar to the rule for commercial stations, and
we have made the applicable revisions discussed above to both rules.  In addition, we have made the following
revisions to the rule relating to noncommercial educational stations.

      56. Letters from the public.  Currently, unlike commercial licensees, noncommercial educational
stations are not required to retain letters from the public regarding operation of the station.  In the NPRM, we
noted that the 1996 Telecommunications Act requires licensees to summarize in their renewal applications
letters received from the public and maintained by the licensee regarding violent programming.  As
noncommercial licensees are not presently required to retain letters from the public, public television
commenters sought guidance regarding the obligations of noncommercial licensees to retain letters regarding
violent programming.  We have concluded that such licensees may retain letters from the public if they
choose, but we will not require them to do so.  The issue of violent programming has almost exclusively been
raised in connection with programming aired by commercial television licensees.  In light of our overall goal
of streamlining public file obligations where appropriate, we do not believe it is necessary to require
noncommercial television licensees to retain letters regarding violent programming or other programming
issues.  However, we will require that all noncommercial television licensees include in their renewal
applications a summary of any letters they receive regarding violent programming.  We believe that this
requirement is appropriate in light of Congress' concern with the issue of violent programming, and will help
ensure that the Commission and the public are kept informed of concerns raised by the public about such
programming on both commercial and noncommercial stations. 
  
     57.  Ownership Reports.  We will revise Section 73.3527 to require that noncommercial licensees
retain a copy of their current complete ownership report (FCC Form 323-E) in the public file.  Presently, that
section of our rules does not reflect the language in Sections 73.3615(d)-(g) requiring that ownership reports
be retained in the public inspection files of noncommercial licensees.  Section 73.3615(d) requires that
noncommercial licensee file ownership reports at renewal, as is required for commercial licensees.  We will
update our rules to mirror our new provision for commercial stations, discussed above. 

      58. Donor's Lists.  One commenter advocated that we eliminate the requirement that
noncommercial broadcast licensees include in their public file a list of donors supporting specific programs. 
We disagree that this provision is obsolete.  The donor list requirement is tied to our sponsorship identification
requirements, the basic premise of which is that the public is entitled to know by whom they are being
persuaded.  The donor list requirement for noncommercial licensees is related to the Commission's
determination that noncommercial educational stations are permitted to limit their on-air program sponsorship
announcements to major donors or underwriters only, but must maintain a complete donor list in their public
file.  The donor lists therefore provide the only complete information regarding program sponsorship on
noncommercial stations, and will be retained.  

                          IV. CONCLUSION

     59.  For the reasons discussed above, we adopt this Report and Order revising our main studio
and public inspection file rules.  We intend by these revisions to minimize the regulatory burdens on licensees
and increase their flexibility in choosing main studio location.  We believe that our decisions herein strike the
appropriate balance of relieving broadcasters of unnecessary regulation and permitting them to take advantage
of economic efficiencies, while ensuring that broadcasters remain responsive to the needs and interests of their
local communities.

                                
                   V. ADMINISTRATIVE MATTERS

     60.  Paperwork Reduction Act of 1995 Analysis.  The action contained herein has been analyzed
with respect to the Paperwork Reduction Act of 1995 and found to impose new or modified reporting and
recordkeeping requirements or burdens on the public.  Implementation of these new or modified reporting and
recordkeeping requirements will be subject to approval by the Office of Management and Budget as prescribed
by the Act.

     61.  ACCORDINGLY, IT IS ORDERED that, pursuant to the authority contained in Sections 154,
303, and 307 of the Communications Act of 1934, as amended, 47 U.S.C.  154, 303, and 307, Sections
73.1125, 73.1202, 73.3526 and 73.3527 of the Commission's Rules, 47 C.F.R.  73.1125, 73.1202, 73.3526
and 73.3527 ARE AMENDED, as set forth in Appendix C.

     62.  IT IS FURTHER ORDERED that the Commission staff shall dismiss all main studio and/or
public file waiver requests currently pending unless parties submitting such waiver requests amend their
requests within 30 days of publication of this Report and Order in the Federal Register to show why the relief
they request continues to be warranted given the newly revised main studio and public file rules.  
     63.  IT IS FURTHER ORDERED that, pursuant to the Contract with America Advancement Act
of 1996, the amendment set forth in Appendix C SHALL BE EFFECTIVE the later of  either 30 days after
publication in the Federal Register, or upon receipt by Congress of a report in compliance with the Contract
with America Advancement Act of 1996, Pub. L. No 104-121, or as soon thereafter as may be approved by
the Office of Management and Budget. 
     
     64.  IT IS FURTHER ORDERED that the Commission's Office of Public Affairs, Reference
Operations Division, SHALL SEND a copy of this Report and Order, including the Final Regulatory
Flexibility Analysis, to the Chief Counsel for Advocacy of the Small Business Administration.
     
     65.  IT IS FURTHER ORDERED that this proceeding IS TERMINATED.

     .


                         FEDERAL COMMUNICATIONS COMMISSION





                         Magalie Roman Salas
                         Secretary




                           APPENDIX A
                                
             Final Regulatory Flexibility Analysis

As required by the Regulatory Flexibility Act (RFA), an Initial Regulatory Flexibility Analysis (IRFA)
was incorporated in the Review of the Commission's Rules Regarding the Main Studio and Public
Inspection File of Broadcast Television and Radio Stations Notice of Proposed Rule Making in MM
Docket No. 97-138 ("NPRM").  The Commission sought written public comment on the proposals in the
NPRM, including comment on the IRFA.  This present Final Regulatory Flexibility Analysis (FRFA)
conforms to the RFA. 

     A.   Need for, and Objectives of, the Main Studio and Public Inspection File Report and Order:

The main studio and public inspection file rules seek to ensure that members of the local community have
access to the broadcast stations that are obligated under the FCC's rules to serve them.  Our goals in  this
proceeding are to relieve undue regulatory burdens on licensees while retaining their  basic obligations to
serve their communities of license, and adopt a rule that is clear and easy to administer.  

This Report and Order adopts rules that relax the main studio rule to reduce the burdens on licensees of
broadcast stations, and provide them  greater flexibility in locating their main studios.  The Report and
Order replaces the current requirement -- that the main studio be located within a station's principal
community contour -- with a new standard that allows a station to locate its main studio within the
principal community contour of any station (in any service) licensed to its community or within 25 miles of
the center of its community of license, whichever it chooses.   This standard fulfills the goals set in this
proceeding.  It is clear and easy to administer, and  it strikes a balance between ensuring that the public has
reasonable access to each station's main studio and public file and minimizing regulatory burdens on
licensees.  This rule should continue to ensure that the main studio is reasonably accessible to a station's
community of license, and grant more flexibility to licensees of broadcast stations.  We also believe that
this amendment of the main studio rule will lessen the disproportionate effect that the previous rule had on
owners of smaller stations.   

 The Report and Order also amends the local public inspection file rules to provide that licensees keep their
public files at their main studio, wherever located, rather than in the community, as previously required.  
In addition, the Report and Order clarifies and updates aspects of the public inspection file rules regarding
contents.   These changes will reduce burdens on licensees providing access and the public seeking
information.   Licensees with out-of -community main studios will be able to exercise dominion over their
public files, making sure the files are complete and available to the public seeking information, and that
personnel are available to answer questions if necessary.  This will also benefit the public.

 
B.   Summary of Significant Issues Raised by Public Comments In Response to the      
IRFA

No comments were received specifically in response to the IRFA attached to the NPRM.   Most
commenters,  including Jacor Communications, Inc. ("Jacor") and Allbritton Communications Company
("Allbritton"), agree generally that the Commission should amend the rule.   Many commenters, including
the National Association of Broadcasters, ("NAB"), Capstar Broadcasting Partners ("Capstar"), ABC,
Inc., and Malrite agree generally with the combination approach for location of the main studio we adopt in
the rule.   Some of these commenters proposed amendments that would benefit only multiple station
licensees, and others proposed amending the rule to allow licensees to locate their main studios at a more
distant location (e.g., 40-50 miles from city-center, or within a "market" rather than community) than we
adopt in our rule today.   We considered the potential significant economic impact of these rules on small
entities, and determined that our approach would benefit more small entities than those proposed by
commenters and not adopted.


     C.   Description and Estimate of the Number of Small Entities To Which Rules Will Apply


1.  Definition of a "Small Business"

Under the RFA, small entities may include small organizations, small businesses, and small governmental
jurisdictions.  5 U.S.C.  601(6).  The RFA, 5 U.S.C.  601(3), generally defines the term "small business"
as having the same meaning as the term "small business concern" under the Small Business Act, 15 U.S.C.
 632.  A small business concern is one which: (1) is independently owned and operated; (2) is not
dominant in its field of operation; and (3) satisfies any additional criteria established by the Small Business
Administration ("SBA").  Pursuant to 4 U.S.C.  601(3), the statutory definition of a small business
applies "unless an agency after consultation with the Office of Advocacy of the SBA and after opportunity
for public comment, establishes one or more definitions of such term which are appropriate to the activities
of the agency and publishes such definition(s) in the Federal Register."

2.  Issues in Applying the Definition of a "Small Business"

As discussed below, we could not precisely apply the foregoing definition of "small business" in developing
our estimates of the number of small entities to which the rules will apply.  Our estimates reflect our best
judgments based on the data available to us. 

An element of the definition of "small business" is that the entity not be dominant in its field of operation. 
We are unable at this time to define or quantify the criteria that would establish whether a specific radio or
television station is dominant in its field of operation.  Accordingly, the following estimates of small
businesses to which the new rules will apply do not exclude any radio or television station from the
definition of a small business on this basis and are therefore overinclusive to that extent.  An additional
element of the definition of "small business" is that the entity must be independently owned and operated. 
As  discussed further below, we could not fully apply this criterion, and our estimates of small businesses
to which the rules may apply may be overinclusive to this extent.  The SBA's general size standards are
developed taking into account these two statutory criteria.  This does not preclude us from taking these
factors into account in making our estimates of the numbers of small entities. 

With respect to applying the revenue cap, the SBA has defined "annual receipts" specifically in 13 C.F.R 
121.104, and its calculations include an averaging process.  We do not currently require submission of
financial data from licensees that we could use in applying the SBA's definition of a small business.  Thus,
for purposes of estimating the number of small entities to which the rules apply, we are limited to
considering the revenue data that are publicly available, and the revenue data on which we rely may not
correspond completely with the SBA definition of annual receipts.

Under SBA criteria for determining annual receipts, if a concern has acquired an affiliate or been acquired
as an affiliate during the applicable averaging period for determining annual receipts, the annual receipts in
determining size status include the receipts of both firms.  13 C.F.R.  121.104(d)(1).  The SBA defines
affiliation in 13 C.F.R.  121.103.  In this context, the SBA's definition of affiliate is analogous to our
attribution rules.  Generally, under the SBA's definition, concerns are affiliates of each other when one
concern controls or has the power to control the other, or a third party or parties controls or has the power
to control both.  13 C.F.R.  121.103(a)(1).  The SBA considers factors such as ownership, management,
previous relationships with or ties to another concern, and contractual relationships, in determining whether
affiliation exists.  13 C.F.R.  121.103(a)(2).  Instead of making an independent determination of whether
television stations were affiliated based on SBA's definitions, we relied on the databases available to us to
provide us with that information.

3.  Estimates Based on Census Data 

The rules proposed in this Notice of Proposed Rule Making will apply to full service television and radio
stations.  The Small Business Administration defines a television broadcasting station that has no more
than $10.5 million in annual receipts as a small business.  Television broadcasting stations consist of
establishments primarily engaged in broadcasting visual programs by television to the public, except cable
and other pay television services.  Included in this industry are commercial, religious, educational, and
other television stations.  Also included are establishments primarily engaged in television broadcasting
and which produce taped television program materials.  Separate establishments primarily engaged in
producing taped television program materials are classified under another SIC number.

There were 1,509 television stations operating in the nation in 1992.  That number has remained fairly
constant as indicated by the approximately 1,580 operating television broadcasting stations in the nation as
of June 1998.  For 1992 the number of television stations that produced less than $10.0 million in
revenue was 1,155 establishments.  Thus, the proposed rules will affect approximately 1,569 television
stations; approximately 77%, or 1,208 of those stations are considered small businesses.  These
estimates may overstate the number of small entities since the revenue figures on which they are based do
not include or aggregate revenues from non-television affiliated companies.  We recognize that the
proposed rules may also affect minority and women owned stations, some of which may be small entities. 
In 1995, minorities owned and controlled 37 (3.0%) of 1,221 commercial television stations in the United
States.  According to the U.S. Bureau of the Census, in 1987 women owned and controlled 27 (1.9%) of
1,342 commercial and non-commercial television stations in the United States.

The proposed rule changes would also affect radio stations.  The SBA defines a radio broadcasting station
that has no more than $5 million in annual receipts as a small business.  A radio broadcasting station is
an establishment primarily engaged in broadcasting aural programs by radio to the public.  Included in
this industry are commercial religious, educational, and other radio stations.  Radio broadcasting stations
which primarily are engaged in radio broadcasting and which produce ratio program materials are similarly
included.  However, radio stations which are separate establishments and are primarily engaged in
producing radio program material are classified under another SIC number.  The 1992 Census indicates
that 96 percent (5,861 of 6,127) of radio station establishments produced less than $5 million in revenue in
1992.  Official Commission records indicate that 11,334 individual radio stations were operating in
1992.  As of June 1998, official Commission records indicate that 12,329 radio stations are currently
operating.

We seek comment on these data and estimates regarding the number of small entities affected by the
proposals in this Notice.

4.  Alternative Classification of Small Television Stations

An alternative way to classify small television stations is by the number of employees.  The Commission
currently applies a standard based on the number of employees in administering its Equal Employment
Opportunity ("EEO") rule for broadcasting.  Thus, radio or television stations with fewer than five full-
time employees are exempted from certain EEO reporting and recordkeeping requirements.  We estimate
that the total number of broadcast stations with 4 or fewer employees is 4,239.


D.   Description of Projected Reporting, Recordkeeping, and Other Compliance 
     Requirements

The Report and Order adopts modifications to existing recordkeeping requirements.  In general, these rules
will allow broadcasters greater flexibility in locating their main studios, and would simply describe more
specifically where a licensee must retain the public file it is already required by the Commission's rules to
maintain.   Generally, the costs of compliance will be reduced for all entities.  The Report and Order also
addresses how a licensee can make its public inspection file available via the internet, but broadcasters
would retain the discretion not to utilize internet technology at all.   The Report and Order clarifies which
materials are required to be kept in the public file, and clarifies the required retention period for public file
materials.  No special skills will be necessary to comply with these requirements.
 
Specifically, the Report and Order requires stations to make available, by mail upon telephone request,
photocopies of documents in the public file.   The station may require the person requesting the copies to
pay the reasonable cost of photocopying prior to mailing, and the station will pay postage. The Report and
Order requires stations to provide callers, if they wish to receive one, a copy of the new edition of "The
Public and Broadcasting" free of charge.  The Report and Order requires licensees to assist callers in this
process and answer questions they may have about the actual contents of the station's public file, such as
the number of pages and time periods covered by a particular report or the types and dates of applications
maintained in the station's public file.  Any increased burdens associated with these accommodations will
apply equally to all stations.
     
With respect to the contents of the local public inspection file, several changes affect reporting,
recordkeeping and compliance  (See  54, Report and Order).  These changes are:   all licensees must
retain a copy of their current authorization, as well as any other documents necessary to reflect any
modifications thereto or conditions that the Commission has placed on the authorization.   This does not
increase any burdens, merely requires the licensee to keep its authorization in its public file as well as in the
station.

Applications filed with the FCC must be retained only until final action has been taken on the application,
except that applications for a construction permit and applications for assignment or transfer of license
granted pursuant to a waiver must be retained for as long as the waiver remains in effect.  Renewal
applications granted on a short-term basis must be retained through the short-term renewal review and until
final grant of the next renewal application.  This reduces the burden on licensees, both by clearly defining
what must be retained, and the period during which it must be retained.

Licensees must retain only the most recent, complete ownership report (FCC Form 323) and any statement
certifying the continuing accuracy of the report, until replaced by a new, complete report.  This
clarification reduces burdens on all licensees.  

Licensees may either retain in the public file a copy of all contracts referenced under 73.3613 of the
Commission's Rules, or retain an up-to-date list identifying all such contracts, and then provide copies of
such contracts to requesting parties within seven days.  The list  option reduces paperwork burdens on
licensees.

Licensees must maintain in the public file an updated version of "The Public and Broadcasting" manual. 

Letters from the public required to be retained are clarified to include e-mail communications.  To mitigate
any burden of increased paperwork resulting from retention of computer e-mails, licensees may, at their
option maintain such documents on diskette rather than in hard copy.   
Commercial TV licensees need not separate letters into programming and non-programming subject
categories, reducing burdens required in maintaining two separate categories.  

With respect to material relating to FCC investigation or complaint, licensees are no longer required to
retain materials related solely to private disputes, as the FCC does not involve itself in such disputes.   

Radio time brokerage agreements must be retained in the public file until the contract expires.  This is a
clarification.
  
Retention periods for the following are updated to reflect the current eight-year license term, noting that all
items are to be retained until grant of the next renewal becomes final:  Issues/programs list; records
regarding children's programming commercial limits;   Children's Television programming reports;   Local
public notice announcements.   Most changes herein are no more burdensome than the previous rule. 

With respect to rules specific to noncommercial educational stations, we have amended the public
inspection file requirements to require noncommercial licensees to retain a copy of their current complete
ownership report (FCC Form 323-E) in the public file.  All noncommercial television licensees must also
include in their renewal applications a summary of any letters they receive regarding violent programming. 
These changes are not burdensome to small businesses.


E.   Steps Taken to Minimize Significant Economic Impact on Small Entities, 
          and Significant Alternatives Considered

We considered four options to achieve our goals in this proceeding.  Our first goal was to  balance
reasonable access to the public and regulatory burdens on licensees, and our second goal was to achieve
clarity in our rules and ease of administration.  The approach we have chosen will grant flexibility to
licensees of multiple stations, as well as licensees of smaller stations, and those that are the sole local
services in a community.   One of our concerns in adopting a rule was to address the differential treatment
larger and smaller stations received under the previous rule.  We believe that the rule we adopt today
addresses this differential treatment and assures that the main studio remains in the primary reception area
of a station licensed to the same community.   It also grants small station licensees a much wider degree of
latitude in choosing main studio locations compared to the latitude they had under the previous rule. 

As stated above, we have adopted an accommodation which applies to all licensees.  We considered and
rejected  other accommodations mentioned in the NPRM and proposed by commenters.   We considered all
of the alternate suggestions and have determined that the accommodation we require in this rule fulfills our
stated goals of balancing public access with regulatory burden and ease and clarity of administration.   As
noted, toll-free telephone service is already required.  We believe that requiring stations to provide
transportation to requesters, to transport the public file to them or open the main studio during non-
business hours would be unnecessarily burdensome to station owners, large and small.  
     
We have considered whether only commercial licensees should continue to  be required to retain letters
from the public.  Since the 1996 Telecommunications Act requires licensees to summarize in their renewal
applications letters received from the public and maintained by the licensee regarding violent programming,
commenters asked to address whether noncommercial licensees would be required to retain these letters.  In
the interest of streamlining and reducing burdens, we have not required noncommercial television licensees
to retain letters from the public regarding violent programming or other programming issues.   As stated
above,  noncommercial television licensees will submit a summary of such letters with their renewal
applications.

F.   Federal Rules that May Duplicate, Overlap, or Conflict With the Proposed
Rules

None.

Report to Congress:  The Commission will send a copy of the  Main Studio and Public Inspection File
Report and Order, including this FRFA, in a report to be sent to Congress pursuant to the Small Business
Regulatory Enforcement Fairness Act of 1996, see 5 U.S.C.  801(a)(1)(A).  In addition, the Commission
will send a copy of the  Main Studio and Public Inspection File Report and Order, including FRFA, to the
Chief Counsel for Advocacy of the Small Business Administration.  A copy of the Main Studio and Public
Inspection File Report and Order and FRFA (or summaries thereof) will also be published in the Federal
Register.  See 5 U.S.C.  604(b).                           Appendix B 
            List of Commenters and Reply Commenters


ABC, Inc.
Allbritton Communications Company
American Radio Systems Corporation
Association of America's Public Television Stations
Association of Local Television Stations, Inc.
Barnstable Broadcasting
Bible Broadcasting Network, Inc.
Bloomington Broadcasting Corporation
Cannell Cleveland, L.P.
Capstar Broadcasting Partners, Inc.
Casciani Communications, Inc.
Coltre Broadcasting, Inc.
Cornerstone Community Radio and LUJ, Inc.
Cowen, Terry A. (KNLR)
Cox Radio, Inc.
Crawford Broadcasting Company
Dalton Group, Inc.
Delta Radio, Inc.
Dick Broadcasting Company, Inc.
First Virginia Communications, Inc.
Fuller-Jeffrey Broadcasting Company, Inc.
GRK Productions Joint Venture
Gilbert, Galen O.
Hallikainen, Harold
Hardy & Carey, L.L.P.
Hawes-Saunders, Ronita
Henry County Radio Company, Inc. (WKKP)
InterMart Broadcasting Corporation
Ital-Net Broadcasting Corporation
Jacor Communications, Inc.
K. J. Benner & Associates
KALI-FM, Inc.
KATY 101.3 FM
KERM, Inc.
KGLM-FM
KHWY, Inc.
KRAI-AM/FM
KTUX, Inc.
LB Radio Corporation
Malrite Communications Group, Inc.
Max Media Properties, LLC
Moody Bible Institute of Chicago
Morality In Media, Inc.
Mullaney Engineering, Inc.
National Association of Broadcasters 
Network Affiliated Station Alliance
New Jersey Broadcasters Association
Noncommercial Educational Licensees
North Carolina Association of Broadcasters and Virginia Association of Broadcasters
Northern New Jersey Radio, L.P.
Odyssey Communications, Inc.
Office of Communications for United Church of Christ and Media Access Project, Center for
Media Education and Minority Media and Telecommunications Council
Osenkowsky, Thomas G.
Paxson Communications Corporation
Paxson Communications Television, Inc.
Positive Alternative Radio, Inc., et al.
Pride Communications, LLC
Pyramid Broadcasting, Inc.
Q107-WMQT
Quarnstrom, Alan R.
Radio One Licenses, Inc.
Robinson, David W.
S & S Communications Group, Inc.
Salem Communications Corporation
Sinclair Telecable, Inc.
Sunair Communications, Inc.
Susquehanna Radio Corp.
Tillotson, David
Unicorn Communications
University of North Carolina Center for Public Television
VI Stereo Communications Corporation
Vidalia Communications Corporation
WJCP
WMPL 920 AM/WZRK 93.5 FM
WXCH
Wichita Great Empire Broadcasting, Inc.
William R. Rice Company
Wind River Broadcast Center
                           Appendix C


Part 73 of Title 47 of the U.S. Code of Federal Regulations is amended as follows:

Part 73 RADIO BROADCAST SERVICES

     1. The authority citation for Part 73 continues to read as follows:

AUTHORITY:  47 U.S.C. 154, 303, 334.

     2. Section 73. 1125 is revised as follows:

 73.1125  Station main studio location.

(a)  Except for those stations described in paragraph (b) of this section, each AM, FM, and TV broadcast
station shall maintain a main studio at one of the following locations: (1) within the station's community of
license; (2) at any location within the principal community contour of any AM, FM, or TV broadcast
station licensed to the station's community of license; or (3) within twenty-five miles from the reference
coordinates of the center of its community of license as described in 73.208(a)(1).

(b)  The following stations are not required to maintain their main studio at the locations described in
subparagraph (a) of this section.

     (1) AM stations licensed as synchronous amplifier transmitters ("AM boosters") or, 
     
     (2) AM, FM, or TV stations, when good cause exists for locating the main studio at a location
other than that described in paragraph (a) of this section, and when so doing would be consistent with the
operation of the station in the public interest.

(c)  Relocation of the main studio may be made:

     (1)  From one point to another within the locations described in paragraph (a) this section or from a
point outside the locations specified in paragraph (a) to one within those locations, without specific FCC
authority, but notification to the FCC in Washington shall be made promptly.

     (2)   Written authority to locate a main studio outside the locations specified in paragraph (a) of
this section for the first time must be obtained from the Audio Services Division, Mass Media Bureau for
AM and FM stations, or the Television Branch, Video Services Division, Mass Media Bureau for
television stations before the studio may be moved to that location.  Where the main studio is already
authorized at a location outside those specified in paragraph (a), and the licensee or permittee desires to
specify a new location also located outside those locations, written authority must also be received from the
Commission prior to the relocation of the main studio.  Authority for these changes may be requested by
filing a letter with an explanation of the proposed changes with the appropriate division.  Licensees or
permittees should be aware that the filing of such a letter request does not imply approval of the relocation
request, because each request is addressed on a case-by-case basis.  A filing fee is required for commercial
AM, FM, or TV licensees or permittees filing a letter request under this section (see 1.1104). 

(d)  Each AM, FM, and TV broadcast station shall maintain a local telephone number in its community of
license or a toll-free number.

     NOTE:  The principal community contour of AM stations that simulcast on a frequency in the
535-1605 kHz band and on a frequency in the 1605-1705 kHz band shall be the 5 mV/m contour of the
lower band operation during the term of the simultaneous operating authority.  Upon termination of the
535-1605 kHz band portion of the dual frequency operation, the principal community contour shall become
the 5 mV/m of the remaining operation in the 1605-1705 kHz band.

     3.  Section 73.3526 is revised to read as follows:

 73.3526  Local public inspection file of commercial stations.

     (a)  Responsibility to maintain a file.  The following shall maintain for public inspection a file
containing the material set forth in this section.  

     (1) Applicants for a construction permit for a new station in the commercial broadcast services
shall maintain a public inspection file containing the material, relating to that station, described in
paragraph (e)(2) and (10) of this section.  A separate file shall be maintained for each station for which an
application is pending.  If the application is granted, paragraph (a)(2) of this section shall apply.

     (2) Every permittee or licensee of an AM, FM, or TV station in the commercial broadcast services
shall maintain a public inspection file containing the material, relating to that station, described in
paragraphs (e)(1) through (10) and (13) of this section.  In addition, every permittee or licensee of a
commercial TV station shall maintain for public inspection a file containing material, relating to that
station, described in paragraphs (e)(11) and (15) of this section, and every permittee or licensee of a
commercial AM or FM station shall maintain for public inspection a file containing the material, relating to
that station, described in paragraph (e)(12) and (14) of this section.  A separate file shall be maintained for
each station for which an authorization is outstanding, and the file shall be maintained so long as an
authorization to operate the station is outstanding.  

     (b)  Location of the file.  The public inspection file shall be maintained at the main studio of the
station.  An applicant for a new station or change of community shall maintain its file at an accessible place
in the proposed community of license or at its proposed main studio. 
     
     (c)  Access to material in the file.  (1)  The file shall be available for public inspection at any time
during regular business hours.  All or part of the file may be maintained in a computer database, as long as
a computer terminal is made available, at the location of the file, to members of the public who wish to
review the file.  Material in the public inspection file shall be made available for printing or machine
reproduction upon request made in person.  The applicant, permittee, or licensee may specify the location
for printing or reproduction, require the requesting party to pay the reasonable cost thereof, and may
require guarantee of payment in advance (e.g., by requiring a deposit, obtaining credit card information, or
any other reasonable method).  Requests for copies shall be fulfilled within a reasonable period of time,
which generally should not exceed 7 days.

     (2)  The applicant, permittee, or licensee shall make available, by mail upon telephone request,
photocopies of documents in the file, and the station shall pay postage.  Licensees shall mail the most recent
version of "The Public and Broadcasting" to any member of the public that requests a copy.  Licensees
shall be prepared to assist members of the public in identifying the documents they may ask to be sent to
them by mail, for example, by describing to the caller, if asked, the period covered by a particular report
and the number of pages included in the report.      

     (d)  Responsibility in case of assignment or transfer.  (1) In cases involving applications for
consent to assignment of broadcast station construction permits or licenses, with respect to which public
notice is required to be given under the provisions of  73.3580 or  73.3594, the file mentioned in
paragraph (a) of this section shall be maintained by the assignor.  If the assignment is consented to by the
FCC and consummated, the assignee shall maintain the file commencing with the date on which notice of
the consummation of the assignment is filed with the FCC.  The assignee shall retain public file documents
obtained from the assignor for the period required under these rules.

     (2)  In cases involving applications for consent to transfer of control of a permittee or licensee of a
broadcast station, the file mentioned in paragraph (a) of this section shall be maintained by the permittee or
licensee.

     (e)  Contents of the file.  The material to be retained in the public inspection file is as follows:

     (1) Authorization.  A copy of the current FCC authorization to construct or operate the station, as
well as any other documents necessary to reflect any modifications thereto or any conditions that the FCC
has placed on the authorization.  These materials shall be retained until replaced by a new authorization, at
which time a copy of the new authorization and any related materials shall be placed in the file. 

     (2) Applications and related materials.  A copy of any application tendered for filing with the FCC,
together with all related material, and copies of Initial Decisions and Final Decisions in hearing cases
pertaining thereto.  If petitions to deny are filed against the application and have been served on the
applicant, a statement that such a petition has been filed shall be maintained in the file together with the
name and address of the party filing the petition.  Applications shall be retained in the public inspection file
until final action has been taken on the application, except that applications for a new construction permit
granted pursuant to a waiver showing and applications for assignment or transfer of license granted
pursuant to a waiver showing shall be retained for as long as the waiver is in effect.  In addition, license
renewal applications granted on a short-term basis shall be retained until final action has been taken on the
license renewal application filed immediately following the shortened license term.  

     (3) Citizen Agreements.  A copy of every written citizen agreement.  These agreements shall be
retained for the term of the agreement, including any renewal or extension thereof. 

     NOTE:  For purposes of this section, a citizen agreement is a written agreement between a
broadcast applicant, permittee, or licensee, and one or more citizens or citizen groups, entered for primarily
noncommercial purposes.  This definition includes those agreements that deal with goals or proposed
practices directly or indirectly affecting station operations in the public interest, in areas such as - but not
limited to - programming and employment.  It excludes common commercial agreements such as
advertising contracts; union, employment, and personal services contracts; network affiliation, syndication,
program supply contracts, etc.  However, the mere inclusion of commercial terms in a primarily
noncommercial agreement - such as a provision for payment of fees for future services of the citizen-parties
(see "Report and Order," Docket 19518, 57 FCC 2d 494 (1976)) - would not cause the agreement to be
considered commercial for purposes of this section.  

     (4) Contour maps.  A copy of any service contour maps, submitted with any application tendered
for filing with the FCC, together with any other information in the application showing service contours
and/or main studio and transmitter location (State, county, city, street address, or other identifying
information).  These documents shall be retained for as long as they reflect current, accurate information
regarding the station.

     (5) Ownership Reports and related materials. A copy of the most recent, complete ownership report
filed with the FCC for the station, together with any statements filed with the FCC certifying that the
current report is accurate, and together with all related material.  These materials shall be retained until a
new, complete ownership report is filed with the FCC, at which time a copy of the new report and any
related materials shall be placed in the file.  The permittee or licensee must retain in the public file either a
copy of the contracts listed in such reports in accordance with 
 73.3615(a)(4)(i), or an up-to-date list of such contracts.  Licensees or permittees who choose to retain a
list of contracts must provide a copy of any contracts to requesting parties within 7 days. 

     (6) Political file.  Such records as are required by  73.1943 to be kept concerning broadcasts by
candidates for public office.  These records shall be retained for the period specified in  73.1943 (2 years).

     (7) Annual Employment Reports.  A copy of every annual employment report filed by the licensee
or permittee for the station, together with all related material (Form 395-B).  These materials shall be
retained until final action has been taken on the station's next license renewal application. 

     (8) The Public and Broadcasting.  At all times, a copy of the most recent version of the manual
entitled "The Public and Broadcasting." 

     (9)  Letters and e-mail from public.  All written comments and suggestions received from the
public regarding operation of the station, unless the letter writer has requested that the letter not be made
public or when the licensee feels that it should be excluded from public inspection because of the nature of
its content, such as a defamatory or obscene letter.  Letters and electronic mail messages shall be retained
for a period of three years from the date on which they are received by the licensee. 

          (i)  For purposes of this section, written comments and suggestions received from the
public include electronic mail messages transmitted via the internet.  Licensees may retain e-mails either on
paper or in a computer file.  Licensees who choose to maintain a computer file of e-mails may make the file
available to the public either by providing the public with access to a computer terminal at the location of
the public file, or providing the public with a copy of such e-mails on computer diskette, upon request. In
the case of identical communications, licensees and permittees may retain one sample copy of the letter or
electronic mail message together with a list identifying other parties who sent identical communications.

     (10) Material relating to FCC investigation or complaint.  Material having a substantial bearing on
a matter which is the subject of an FCC investigation or complaint to the FCC of which the applicant,
permittee, or licensee has been advised.  This material shall be retained until the applicant, permittee, or
licensee is notified in writing that the material may be discarded.

     (11)(i)  TV issues/programs lists.  For commercial TV broadcast stations, every three months a list
of programs that have provided the station's most significant treatment of community issues during the
preceding three month period.  The list for each calendar quarter is to be filed by the tenth day of the
succeeding calendar quarter (e.g., January 10 for the quarter October - December, April 10 for the quarter
January - March, etc.).  The list shall include a brief narrative describing what issues were given significant
treatment and the programming that provided this treatment.  The description of the programs shall include,
but shall not be limited to, the time, date, duration, and title of each program in which the issue was treated. 
The lists described in this paragraph shall be retained in the public inspection file until final action has been
taken on the station's next license renewal application.

     (11)(ii)  Records concerning commercial limits.  For commercial TV broadcast stations, records
sufficient to permit substantiation of the station's certification, in its license renewal application, of
compliance with the commercial limits on children's programming established in 47 U.S.C. 303a and 47
CFR 73.670.  The records for each calendar quarter must be filed in the public inspection file by the tenth
day of the succeeding calendar quarter (e.g., January 10 for the quarter October - December, April 10 for
the quarter January - March, etc.).  These records shall be retained until final action has been taken on the
station's next license renewal application.

     (11)(iii)  Children's Television Programming Reports.  For commercial TV broadcast stations, on a
quarterly basis, a completed Children's Television Programming Report ("Report"), on FCC Form 398,
reflecting efforts made by the licensee during the preceding quarter, and efforts planned for the next
quarter, to serve the educational and informational needs of children.  The Report for each quarter is to be
filed by the tenth day of the succeeding calendar quarter.  The Report shall identify the licensee's
educational and informational programming efforts, including programs aired by the station that are
specifically designed to serve the educational and informational needs of children, and it shall explain how
programs identified as Core Programming meet the definition set forth in  73.671(c).  The Report shall
include the name of the individual at the station responsible for collecting comments on the station's
compliance with the Children's Television Act, and it shall be separated from other materials in the public
inspection file.  These Reports shall be retained in the public inspection file until final action has been taken
on the station's next license renewal application.  Licensees shall publicize in an appropriate manner the
existence and location of these Reports.  For an experimental period of three years, licensees shall file these
Reports with the Commission on an annual basis, i.e. four quarterly reports filed jointly each year,
preferably in electronic form.  These Reports shall be filed with the Commission on January 10, 1998,
January 10, 1999, and January 10, 2000.  

     (12)  Radio issues/programs lists.  For commercial AM and FM broadcast stations, every three
months a list of programs that have provided the station's most significant treatment of community issues
during the preceding three month period.  The list for each calendar quarter is to be filed by the tenth day of
the succeeding calendar quarter (e.g., January 10 for the quarter October - December, April 10 for the
quarter January - March, etc.).  The list shall include a brief narrative describing what issues were given
significant treatment and the programming that provided this treatment.  The description of the programs
shall include, but shall not be limited to, the time, date, duration, and title of each program in which the
issue was treated.  The lists described in this paragraph shall be retained in the public inspection file until
final action has been taken on the station's next license renewal application.

     (13)  Local public notice announcements.  Each applicant for renewal of license shall, within 7
days of the last day of broadcast of the local public notice of filing announcements required pursuant to 
73.3580(h), place in the station's local public inspection file a statement certifying compliance with this
requirement.  The dates and times that the pre-filing and post-filing notices were broadcast and the text
thereof shall be made part of the certifying statement.  The certifying statement shall be retained in the
public file for the period specified in  73.3580 (for as long as the application to which it refers).  

     (14)  Radio time brokerage agreements.  For commercial radio stations, a copy of every agreement
or contract involving time brokerage of the licensee's station or of another station by the licensee, with
confidential or proprietary information redacted where appropriate.  These records shall be retained as long
as the contract or agreement is in force.

     (15)  Must-carry or retransmission consent election.  Statements of a commercial television
station's election with respect to either must-carry or retransmission consent as defined in  76.64 of this
chapter.  These records shall be retained for the duration of the three year election period to which the
statement applies.

     NOTE:  For purposes of this section, action taken on an application tendered with the FCC
becomes final when that action is no longer subject to reconsideration, review, or appeal either at the FCC
or in the courts.

     NOTE:  For purposes of this section, the term "all related material" includes all exhibits, letters,
and other documents tendered for filing with the FCC as part of an application, report, or other document,
all amendments to the application, report, or other document, copies of all documents incorporated therein
by reference and not already maintained in the public inspection file, and all correspondence between the
FCC and the applicant pertaining to the application, report, or other document, which according to the
provisions of  0.451 through 0.461 of the rules are open for public inspection at the offices of the FCC.

     4.  Section 73.3527 is revised as follows:

   73.3527  Local public inspection file of noncommercial educational stations.

     (a)  Responsibility to maintain a file.  The following shall maintain for public inspection a file
containing the material set forth in this section.  

     (1) Applicants for a construction permit for a new station in the noncommercial educational
broadcast services shall maintain a public inspection file containing the material, relating to that station,
described in paragraph (e)(2) and (11) of this section.  A separate file shall be maintained for each station
for which an application is pending.  If the application is granted, paragraph (a)(2) of this section shall
apply.

     (2) Every permittee or licensee of an AM, FM, or TV station in the noncommercial educational
broadcast services shall maintain a public inspection file containing the material, relating to that station,
described in paragraphs (e)(1) through (11) of this section.  In addition, every permittee or licensee of a
noncommercial educational TV station shall maintain for public inspection a file containing material,
relating to that station, described in paragraphs (e)(12) of this section.  A separate file shall be maintained
for each station for which an authorization is outstanding, and the file shall be maintained so long as an
authorization to operate the station is outstanding. 

     (b)  Location of the file.  The public inspection file shall be maintained at the main studio of the
station.  An applicant for a new station or change of community shall maintain its file at an accessible place
in the proposed community of license or at its proposed main studio. 
     
     (c)  Access to material in the file.  (1)  The file shall be available for public inspection at any time
during regular business hours.  All or part of the file may be maintained in a computer database, as long as
a computer terminal is made available, at the location of the file, to members of the public who wish to
review the file.  Material in the public inspection file shall be made available for printing or machine
reproduction upon request made in person.  The applicant, permittee, or licensee may specify the location
for printing or reproduction, require the requesting party to pay the reasonable cost thereof, and may
require guarantee of payment in advance (e.g., by requiring a deposit, obtaining credit card information, or
any other reasonable method).  Requests for copies shall be fulfilled within a reasonable period of time,
which generally should not exceed 7 days. 

     (2)  The applicant, permittee, or licensee shall make available, by mail upon telephone request,
photocopies of documents in the file, and the station shall pay postage.  Licensees shall mail the most recent
version of "The Public and Broadcasting" to any member of the public that requests a copy.  Licensees
shall be prepared to assist members of the public in identifying the documents they may ask to be sent to
them by mail, for example, by describing to the caller, if asked, the period covered by a particular report
and the number of pages included in the report.

     (d)  Responsibility in case of assignment or transfer.  (1) In cases involving applications for
consent to assignment of broadcast station construction permits or licenses, with respect to which public
notice is required to be given under the provisions of  73.3580 or  73.3594, the file mentioned in
paragraph (a) of this section shall be maintained by the assignor.  If the assignment is consented to by the
FCC and consummated, the assignee shall maintain the file commencing with the date on which notice of
the consummation of the assignment is filed with the FCC.  The assignee shall retain public file documents
obtained from the assignor for the period required under these rules.

     (2)  In cases involving applications for consent to transfer of control of a permittee or licensee of a
broadcast station, the file mentioned in paragraph (a) of this section shall be maintained by the permittee or
licensee.

     (e)  Contents of the file.  The material to be retained in the public inspection file is as follows:

     (1) Authorization.  A copy of the current FCC authorization to construct or operate the station, as
well as any other documents necessary to reflect any modifications thereto or any conditions that the FCC
has placed on the authorization.  These materials shall be retained until replaced by a new authorization, at
which time a copy of the new authorization and any related materials shall be placed in the file. 

     (2) Applications and related materials.  A copy of any application tendered for filing with the FCC,
together with all related material, and copies of Initial Decisions and Final Decisions in hearing cases
pertaining thereto.  If petitions to deny are filed against the application and have been served on the
applicant, a statement that such a petition has been filed shall be maintained in the file together with the
name and address of the party filing the petition.  Applications shall be retained in the public inspection file
until final action has been taken on the application, except that applications for a new construction permit
granted pursuant to a waiver showing and applications for assignment or transfer of license granted
pursuant to a waiver showing shall be retained for as long as the waiver is in effect.  In addition, license
renewal applications granted on a short-term basis shall be retained until final action has been taken on the
license renewal application filed immediately following the shortened license term.    

     (3) Contour maps.  A copy of any service contour maps, submitted with any application tendered
for filing with the FCC, together with any other information in the application showing service contours
and/or main studio and transmitter location (State, county, city, street address, or other identifying
information).  These documents shall be retained for as long as they reflect current, accurate information
regarding the station.

     (4) Ownership Reports and related materials. A copy of the most recent, complete ownership report
filed with the FCC for the station, together with any subsequent supplemental report or statement filed with
the FCC certifying that the current report is accurate, and together with all related material.  These
materials shall be retained until a new, complete ownership report is filed with the FCC, at which time a
copy of the new report and any related materials shall be placed in the file.  The permittee or licensee must
retain in the public file either a copy of the contracts listed in such reports in accordance with 
73.3615(d)(3), or an up-to-date list of such contracts.  Licensees and permittees who choose to maintain a
list of contracts must provide a copy of any contracts to requesting parties within 7 days.  
 
     (5) Political file.  Such records as are required by  73.1943 to be kept concerning broadcasts by
candidates for public office.  These records shall be retained for the period specified in  73.1943 (2 years).

     (6) Annual Employment Reports.  A copy of every annual employment report (Form 395) filed by
the licensee or permittee for the station, together with all related material.  These materials shall be retained
until final action has been taken on the station's next license renewal application. 

     (7) The Public and Broadcasting.  At all times, a copy of the most recent version of the manual
entitled "The Public and Broadcasting."

     (8)  Issues/programs lists.  For nonexempt noncommercial educational broadcast stations, every
three months a list of programs that have provided the station's most significant treatment of community
issues during the preceding three month period.  The list for each calendar quarter is to be filed by the tenth
day of the succeeding calendar quarter (e.g., January 10 for the quarter October - December, April 10 for
the quarter January - March, etc.).  The list shall include a brief narrative describing what issues were
given significant treatment and the programming that provided this treatment.  The description of the
programs shall include, but shall not be limited to, the time, date, duration, and title of each program in
which the issue was treated.  The lists described in this paragraph shall be retained in the public inspection
file until final action has been taken on the station's next license renewal application.

     (9)  Donor lists.  The lists of donors supporting specific programs.  These lists shall be retained for
two years.

     (10)  Local public notice announcements.  Each applicant for renewal of license shall, within 7
days of the last day of broadcast of the local public notice of filing announcements required pursuant to 
73.3580(h), place in the station's local public inspection file a statement certifying compliance with this
requirement.  The dates and times that the pre-filing and post-filing notices were broadcast and the text
thereof shall be made part of the certifying statement.  The certifying statement shall be retained in the
public file for the period specified in  73.3580 (for as long as the application to which it refers).  

     (11) Material relating to FCC investigation or complaint.  Material having a substantial bearing on
a matter which is the subject of an FCC investigation or complaint to the FCC of which the applicant,
permittee, or licensee has been advised.  This material shall be retained until the applicant, permittee, or
licensee is notified in writing that the material may be discarded.

     (12)  Must-carry requests.  Noncommercial television stations requesting mandatory carriage on
any cable system pursuant to  76.56 of this chapter shall place a copy of such request in its public file and
shall retain both the request and relevant correspondence for the duration of any period to which the request
applies.  

     NOTE:  For purposes of this section, a decision made with respect to an application tendered with
the FCC becomes final when that decision is no longer subject to reconsideration, review, or appeal either
at the FCC or in the courts.

     NOTE:  For purposes of this section, the term "all related material" includes all exhibits, letters,
and other documents tendered for filing with the FCC as part of an application, report, or other document,
all amendments to the application, report, or other document, copies of all documents incorporated therein
by reference and not already maintained in the public inspection file, and all correspondence between the
FCC and the applicant pertaining to the application, report, or other document, which according to the
provisions of  0.451 through 0.461 of the rules are open for public inspection at the offices of the FCC.

     5.  Section 73.1202 is removed and reserved.


                      SEPARATE STATEMENT OF
          COMMISSIONERS SUSAN NESS AND GLORIA TRISTANI

In the Matter of Review of the Commission's Rules Regarding the Main Studio and Local Public
Inspection Files of Broadcast Television and Radio Stations, MM Docket No. 97-138


     This item improves our rules by requiring that the main studio and public inspection files
be located together.  We write separately, however, to note our apprehensions about allowing the
main studio and public file to be located within the primary contour of any station in any service,
serving the community of license.  Such leniency, we are afraid, may erode the important concept
of localism upon which the broadcast service is premised.  

     Our decision attempts to balance competing priorities.  We have sought to permit multi-
station owners to reduce operating expenses by consolidating their stations' facilities in one
location.  We also have sought to ensure access by listeners and viewers in the communities of
license so they may be fully informed about station ownership, operations, programming and other
matters documented in the public file.  We fear, however, that today's decision may have overly
tipped the scale in favor of economic savings from consolidation, to the detriment of local
accountability.

     Under Section 307(b) of the Communications Act, the Commission must distribute the
licenses "among the several States and communities so as to provide a fair, efficient, and equitable
distribution...."  We have historically allocated stations to communities -- large and small, urban,
suburban, and rural -- rather than authorizing service on a larger, regional basis.  Each station is
assigned a community of license and it is this local community to which the broadcaster must be
oriented.  The change in our rules adopted today might permit a station in Toledo to maintain its
studio and public file in Detroit.  Such a large distance between the community of license and the
physical location of the public file could well erode the station's commitment to its assigned
community.

     Of special concern are suburban communities which may end up having a local broadcast
station in name only.  The proposal of the United Church of Christ, the Media Access Project, the
Center for Media Education, and Minority Media and Telecommunications Council which would
permit a station to locate its studio and public file within any contour of any station licensed to the
community, or 25 miles from the community center, whichever is less, would have been a
reasonable compromise.   

     Our order emphasizes that allowing such a change in no way relieves broadcasters from
their obligation to serve the needs and interests of their local communities of license, and we hope
and expect broadcasters will adhere to that commitment.
   
     One other important aspect of the item is our continued commitment to maintaining the
accessibility of broadcasters' public files.  In a deregulatory environment, the enforcement of many
of our rules relies upon private citizens to monitor the contents of these files.

     Although the public file may now be located outside the community of license (and thus
more inaccessible), we are hopeful that other factors will compensate for such inconveniences. 
First, since the file will now be located at the main studio, we believe that it will be kept more
organized and up-to-date.  Second, all stations -- regardless of location -- will now be required to
provide specific documents by mail upon request and must provide meaningful assistance to
members of the public who call for information.  Such assistance will be especially helpful to those
without access to transportation or for whom travel is physically difficult.  Finally, our Mass
Media Bureau will be creating a new guide for consumers on the purpose and contents of the
public file.  This should assist both members of the public in formulating requests for documents
and broadcasters by clearly spelling out what is to be included in the public file.

     In sum, we have serious concerns about this item.  While we do not oppose giving
broadcasters additional flexibility in locating their main studio, the public's interest in localism and
access to broadcasters' public files remains our first priority.  But so long as these principles are
adhered to and enforced, we believe that today's decision and the public interest can be
harmonized.