Supporting Statement OMB 3060-1178 FCC Form 399 2022 (final)

OMB Control Number: 3060-1178 June 2022

TV Broadcaster Relocation Fund Reimbursement Form, FCC Form 2100,

Schedule 399; Section 73.3700(e), Reimbursement Rules; Section 73.3701, Reimbursement Under the Reimbursement Expansion Act.

SUPPORTING STATEMENT

1. Justification:

1. The following information collection requirements are approved under this information collection and they are being extended for three years by the Office of Management and Budget (OMB):

^In the Commission’s LPTV , TV Translator, and FM Reimbursement Report and Order, adopted on March 15, 2019.¹ The LPTV, TV Translator, and FM Reimbursement Report and Order adopts rules pursuant to Congressional directive, in the 2018 Reimbursement Expansion Act (REA),² that the Commission reimburse certain Low Power Television (LPTV) and television translator (TV translator) stations (together LPTV/translator stations), and FM broadcast stations (FM stations), for costs incurred as a result of the Commission’s broadcast television spectrum incentive auction and subsequent television channel repacking. In the REA, Congress provided additional funding for the TV Broadcaster Relocation Fund (Reimbursement Fund)³ and expanded the list of entities eligible to receive reimbursement for costs incurred as a result of the reorganization of broadcast television spectrum. Eligible entities now include LPTV/translator and FM stations.⁴ This submission is being made to implement the Commission’s directive to add LPTV, TV Translators, and FM broadcast stations to this information collection.

In the LPTV, TV Translator, and FM Reimbursement Report and Order, the Commission delegated to the Media Bureau the authority to modify current FCC Form 2100, Schedule 399, TV Broadcaster Relocation Fund Reimbursement Form (Reimbursement Form), to add all newly eligible LPTV, TV Translator, and FM broadcast entities.⁵ The Media Bureau has, therefore, added questions and certifications to the Reimbursement Form to accommodate these newly eligible broadcast entities. Specifically, in order to protect the Reimbursement Fund against waste, fraud, and abuse, all newly eligible broadcast entities that propose to request reimbursement for eligible expenses must certify on the Reimbursement Form that they meet the specified eligibility criteria (Eligibility Certification), and provide information regarding their affected broadcasting equipment and the estimated costs eligible for reimbursement.⁶

The Commission’s Incentive Auction Order⁷ adopted rules for holding an Incentive Auction, as required by the Spectrum Act. The rules governing these processes are codified at 47 CFR Parts 0, 1, 27, 73 and 74.⁸ In the Incentive Auction Order, the Commission delegated to the Media Bureau, the authority to develop a form, the Reimbursement Form, for use by each full power and Class A broadcast licensee reassigned to a new channel following the Incentive Auction to claim reimbursement from the Reimbursement Fund.⁹ The Commission also delegated to the Media Bureau the authority to adopt the necessary policies, procedures, and certifications relating to eligibility, allocations, draw downs, payments, obligations, and expenditures of money from the Fund in order to protect against waste, fraud and abuse and in the event of bankruptcy.¹⁰ Subsequently, the Commission released a Public Notice also clarifying that entities must submit FCC Form 2100, Schedule 399 each time they request reimbursement from the Fund for an actual expense incurred during the reimbursement period.¹¹

The following is a summary of each rule section containing information collection requirements within this information collection as already approved by the Office of Management and Budget (OMB):

1. Section 73.3700(e)(2) requires all broadcast television station licensees and MVPDs that are eligible to receive payment of relocation costs to file an estimated cost form providing an estimate of their reasonably incurred relocation costs no later than three months following the release of the Channel Reassignment Public Notice. If a broadcast television station licensee or MVPD seeks reimbursement for new equipment, it must provide a justification as to why it is reasonable under the circumstances to purchase new equipment rather than modify its corresponding current equipment in order to change channels or to continue to carry the signal of a broadcast television station that changes channels. Entities that submit their own cost estimates, as opposed to the predetermined cost estimates provided in the estimated cost form, must submit supporting evidence and certify that the estimate is made in good faith. Entities must also update the form if circumstances change significantly.¹²

2. Section 73.3700(e)(3) requires all broadcast television station licensees and MVPDs that received an initial allocation from the TV Broadcaster Relocation Fund, upon completing construction or other reimbursable changes, or by a specific deadline prior to the end of the Reimbursement Period to be established by the Media Bureau, whichever is earlier, to provide the Commission with information and documentation, including invoices and receipts, regarding their actual expenses incurred as of a date to be determined by the Media Bureau. If a broadcast television station licensee or MVPD has not yet completed construction or other reimbursable changes by the Final Allocation Deadline, it must provide the Commission with information and documentation regarding any remaining eligible expenses that it expects to reasonably incur.

3. Section 73.3700(e)(4) requires broadcast television station licensees and MVPDs that have received money from the TV Broadcaster Relocation Fund, after completing all construction or reimbursable changes, to submit final expense documentation containing a list of estimated expenses and actual expenses as of a date to be determined by the Media Bureau. Entities that have finished construction and have submitted all actual expense documentation by the Final Allocation Deadline will not be required to file at the final accounting stage.

4. Section 73.3700(e)(6) requires broadcast television station licensees and MVPDs that receive payment from the TV Broadcaster Relocation Fund to retain all relevant documents pertaining to construction or other reimbursable changes for a period ending not less than 10 years after the date on which it receives final payment from the TV Broadcaster Relocation Fund and to

make available all relevant documentation upon request from the Commission or its contractor.

This information collection does not affect individuals or households; thus, there are no impacts under the Privacy Act.

The statutory authority for this collection is contained in Pub. L. No. 112-96, §§ 6402 (codified at 47 U.S.C. § 309(j)(8)(G)), 6403 (codified at 47 U.S.C. § 1452), 126 Stat. 156 (2012) (Spectrum Act).

2. The Media Bureau will use the information provided by broadcast licensees and MVPDs (collectively, “eligible entities”) on the Reimbursement Form for several purposes. First, the Media Bureau will use information submitted on the Reimbursement Form to obtain eligible entities’ estimated costs related to transitioning stations to new channels. This will allow the Media Bureau to make an allocation for each eligible entity against which the entity will draw down as it incurs expenses. Second, eligible entities will submit the Reimbursement Form multiple times throughout the reimbursement period as they submit actual cost documentation (such as receipts and invoices) for expenses incurred. The Media Bureau will review submitted documentation and approve reimbursement payment. Finally, at the end of the project, eligible entities will use the Reimbursement Form to submit a final accounting of their costs, which the Media Bureau will use to true-up payments, as appropriate.

3. Form 2100, Schedule 399 will be filed electronically in the Media Bureau’s Licensing and Management System (LMS). LMS is the successor system to the Commission’s CDBS system, which was the system used for submitting all broadcast-related FCC Forms.

4. No other agency imposes similar information collections on the respondents. There is no similar data available from any other source.

5. In conformance with the Paperwork Reduction Act of 1995, the Commission is making an effort to minimize the information collection burden for all respondents, including small businesses. For example, the Commission considered and rejected requiring all broadcast licensees to provide a preliminary estimate of their relocation costs, regardless of whether they are reassigned to a new channel. The Commission declined to ask all broadcasters to estimate their individual relocation costs because it concluded that such estimates generally cannot be made accurately until post-auction channel assignments have been made.¹³ Rather than requiring all broadcasters to submit cost estimates based on speculative channel assignments, Form 2100, Schedule 399 requires only those broadcast licensees actually reassigned to a new channel following the incentive auction to estimate the costs associated with relocating to their new channel assignment. Where possible, Form 2100, Schedule 399 provides multiple options from which the filer need only check the appropriate box.

6. Form 2100, Schedule 399 will collect key data from eligible entities throughout the reimbursement period. This information collection is necessary for the Commission to carry out the goals of and to comply with the Spectrum Act. Without the information collected in Form 2100, Schedule 399, the Commission could not reimburse broadcasters and MVPDs for the costs they incur in relocating to new channels after the incentive auction. Specifically, if the Commission did not collect invoices and other supporting documentation, it could not accurately pay the expenses that relocated broadcasters and MVPDs incur related to the channel reassignment and are entitled to receive pursuant to the Spectrum Act. The data collected will allow the Commission to comply with its statutory obligations both to reimburse costs reasonably incurred under section 6403(b)(4)(A) and to provide entities with the funds to implement their relocation changes within the statutory three-year reimbursement period under section 6403(b)(4)(D) of the Spectrum Act (codified at 47 U.S.C. § 1452). In addition, collecting cost documentation will preserve the financial integrity of the Fund by reducing the likelihood of waste, fraud, and abuse.

7. The collections are not being conducted in any manner inconsistent with 5 C.F.R. Part 1320.

8. The Commission published a 60-day public comment period in the Federal Register (87 FR 16735) on March 24, 2022, seeking comments from the public on the information collection requirements that are contained in this supporting statement. No comments were received from the public.

9. No payment or gift will be provided to respondents in connection with this collection of information.

10. Some assurances of confidentiality are being provided to the respondents. Invoices, receipts, contracts and other cost documentation submitted along with the form will be kept confidential in order to protect the identification of vendors and the terms of private contracts between parties. The name of the vendor providing the services or equipment and its Employer Identification Number (EIN) or Taxpayer Identification Number (TIN), if provided by the vendor, will not be visible to the public viewing on-line information. Parties filing Form 2100, Schedule 399 may also seek confidential treatment of other information they provide pursuant to the Commission’s existing confidentiality rules.¹⁴

11. There are no questions of a sensitive nature with respect to the information collected.

12. FCC Form 2100, Schedule 399 is used for several purposes. As such, we evaluate the burden by type of submission. There are two types of respondents, broadcasters and MVPDs. Previously, we had estimated that there would be 1,300 broadcaster respondents and 600 MPVD respondents. ¹⁵ Further, subsequent revision implementing the Commission’s LPTV, TV Translator, and FM Reimbursement Report and Order, added 2,500 respondents to the broadcaster category (2,000 LPTV/translator stations and 500 FM stations) creating a new estimated number of broadcaster respondents of 3,800; We retain the number of MVPD respondents at 600. However, as the program has matured the number of respondents has stabilized at approximately 950 full power television stations, 970 low power television, translator television, and FM radio stations, and 180 MVPDs.

a. Cost Estimate Submissions and Revisions

Broadcasters. The Commission estimates that all the respondents will require both internal and outside assistance to fulfill the reporting requirement. The estimated average burden on each applicant/licensee is six (6) hours. The respondents will use in-house staff to complete the form, which requires approximately two (2) hours and will use in-house station engineers to complete the technical questions and consult with outside engineers, which requires approximately four (4) hours. We estimate that broadcast stations must substantially revise their cost estimates on average twice per year.

Number of Annual Respondents: 1,900 Broadcast Licensees

Number of Annual Responses: 3,800 FCC Form 2100, Schedule 399 Cost Estimate Submissions

Annual Burden Hours:

3,800 applications x 4 hours to complete in-house engineering review = 15,200 hours
3,800 applications x 2 hours to complete non-engineering portion of the form = 7,600 hours Annual Broadcaster Burden Hours: 22,800 hours

The respondents’ estimated salary are $100,000/year ($48.08/hour). The station engineers’ salary are estimated at $60,000/year ($30.00/hour).

Annual “In-house cost”:
3,800 applications x 4 hours to complete in-house engineering review x $30.00/hour = $456,000

3,800 applications x 2 hours to complete non-engineering portion x $48.08/hour = $365,408
Annual Broadcaster “In House” Cost: $821,408

MVPDs: The Commission estimates that all of the respondents will require both in-house and outside assistance to fulfill the reporting requirement. The estimated average burden on each applicant/licensee is four (4) hours. The respondents will use in-house staff to complete the form, which requires approximately three (3) hours and will use in-house station engineers to complete the technical questions and consult with outside engineers, which requires approximately one (1) hour. MVPD construction projects are substantially less complicated than broadcast station projects, and we estimate approximately 1 estimate revision per year per MVPD file.

Number of Annual Respondents: 180 MVPDs

Number of Annual Responses: 180 FCC Form 2100, Schedule 399 Cost Estimate Submissions

Annual Burden Hours:

180 applications x 3 hours to complete in-house engineering review = 540 hours
180 applications x 1 hour to complete non-engineering portion of the form = 180 hours Annual MVPD Burden Hours: 720 hours

The respondents’ estimated salary are $100,000/year ($48.08/hour). The station engineers’ salary is estimated at $60,000/year ($30.00/hour).

Annual “In-house cost”:
180 applications x 3 hours to complete in-house engineering review x $30.00/hour = $16,200.00

180 applications x 1 hour to complete non-engineering portion x $48.08/hour = $ 8,654.40
Annual MVPD “In House” Cost: $24,854.40

Total (Broadcaster and MVPD) Annual Burden Hours: 22,800 + 720 = 23,520

Total (Broadcaster and MVPD) Annual “In-House” Cost: $821,408+ $24,854.40 = $846,262.40

b. Actual Cost Documentation Submission

Broadcasters: The Commission estimates that all of the respondents will fulfill the reporting requirement without any outside assistance. We estimate it will take one (1) hour to log in, complete the relevant lines on the form and upload the supporting documentation necessary to complete a filing and keep records of the documentation. We further estimate that each respondent will make an average of ten filings of their actual cost documentation annually. Therefore, the burden on respondents is as follows:

1,900 (respondents) x 1 hour/response = 1,900 hours

We estimate that this information collection will be required ten times each year for broadcasters. Therefore, the total annual burden hours equal 19,000 hours (1,900 respondents x 1 hour/response x 10 times/year).

Number of Respondents: 1,900

Number of Annual Responses: 19,000

Annual Burden Hours: 19,000 hours

We assume that the respondents will use in-house clerical personnel, whose earnings level is equivalent on average to the GS-7/5 level at $27.50 per hour, to prepare this information and keep records.

Annual “In-house” Burden Cost: 19,000 hours x $25.53/hour = $485,070

These estimates are based on FCC staff's knowledge and familiarity with the availability of the data required.

MVPDs: The Commission estimates that all of the respondents will fulfill the reporting requirement without any outside assistance. We estimate it will take 1 hour to log in, complete the relevant lines on the form and upload the supporting documentation necessary to complete a filing and keep records of the documentation. Based on evidence to date, we further estimate that each respondent will make an average of two (2) filings of their actual cost documentation annually. Therefore, the burden on respondents is as follows:

180 (respondents) x 1 hour/response = 180 hours

We estimate that this information collection will be required two times each year for MVPDs. Therefore, the total burden hours equal 360 hours (180 respondents x 1 hour/response x 2 times/year).

We assume that the respondents will use in-house clerical personnel, whose earnings level is equivalent on average to the GS-7/5 level at $27.50 per hour, to prepare this information and keep records.”

Annual “In-House” Burden Cost: = 360 hours x $27.50 = $9,900

Number of Respondents: 180

Number of Annual Responses: 360

Annual Burden Hours: 360 hours

Annual “In-house” Burden Cost: $9,900.00

Total (Broadcaster and MVPD) Annual Burden Hours: 19,000 + 360 = 19,360

Total (Broadcaster and MVPD) Annual “In-House” Cost: $485,070 + $9,900.00 = $494,970.00

These estimates are based on FCC staff's knowledge and familiarity with the availability of the data required.

c. Final Accounting Submission

Broadcasters: The Commission estimates the respondents will fulfill the reporting requirement without any outside assistance. We estimate it will take 4 hours to log in, complete the relevant lines on the form and upload the supporting documentation necessary to complete a filing and keep records of the documentation. Each respondent will make one final accounting submission. Therefore, the burden on respondents is as follows:

1,900 (respondents) x 4 hour/response (one time) = 7,600 hours

We assume that the respondents will use in-house clerical personnel, whose earnings level is equivalent on average to the GS-7/5 level at $27.50 per hour, to prepare this information and keep records. However, final accounting submissions will be collected over three years, 2021 through 2023, and therefore the annual burden hours and costs will be divided across these years.

Annual “In-house” Cost: 2,533 hours x $27.50/ hour = $69,657.50

Number of Respondents: 1,900

Number of Annual Responses: 633

Annual Burden Hours: 2,533 hours

Annual “In-House” Burden Cost: $69,657.50

These estimates are based on FCC staff's knowledge and familiarity with the availability of the data required.

MVPDs: The Commission estimates that all the respondents will fulfill the reporting requirement without any outside assistance. We estimate it will take four (4) hours to log in, complete the relevant lines on the form and upload the supporting documentation necessary to complete a filing and keep records of the documentation. Each respondent will make one final accounting submission. Therefore, the burden on respondents is as follows:

180 (respondents) x 4 hour/response (one time) = 720 hours

We assume that the respondents will use in- house clerical personnel, whose earnings level is equivalent on average to the GS-7/5 level at $27.50 per hour, to prepare this information and keep records. MVPD final submissions will be collected in 2022.

Annual “In-house” Cost: 720 hours x $27.50/hour = $19,800.

Number of Respondents: 180.

Number of Annual Responses: 180.

Annual Burden Hours: 720 hours.

Annual “In-House” Burden Cost: $19,800.

Total (Broadcaster and MVPD) Annual Burden Hours: 2,533 + 720 = 3,253

Total (Broadcaster and MVPD) Annual “In-House” Cost: $69,657.50 + $19,800 = $89,457.50

Cumulative Totals for the Entire Collection:

Total Number of Respondents: 1,900 Broadcasters + 180 MVPDs = 2,080 respondents

Total Number of Responses: 3,800 + 180 + 19,000 + 360 + 633 + 180 = 24,153 responses

Total Annual Burden Hours: 22,800 + 720 + 19,000 + 360 + 2533 + 720 = 46,133 hours

Total Annual “In-house” Cost: $846,262.40 + $494,970.00 + $89,457.50 = $1,430,689.90

These estimates are based on FCC staff's knowledge and familiarity with the availability of the data required.

13. The external cost that respondents incur for the hiring of outside consultants to assist with fulfilling the requirements is as follows:

1. Cost Estimate Submission

Broadcasters: The Commission estimates that all the respondents (1,300) will require outside assistance to fulfill the reporting requirement. The respondents will consult with an engineer ($250/hr.) to assess existing equipment and recommend modifications in light of the broadcaster’s new channel assignment. We estimate the engineering consultation requires an average of 15 hours. The cost estimate submission will be a one-time filing. Therefore, the external cost is as follows:

1,900 responses x 15 hours/response x $250/hour (consultant) = $ 7,125,000

MVPDs: The Commission estimates that all of the respondents (180) will require outside assistance to fulfill the reporting requirement. The respondents will consult with an engineer ($250/hr.) to assess existing equipment and recommend modifications in light of broadcasters’ new channel assignments. We estimate the engineering consultation requires 5 hours. The cost estimate submission will be a one-time filing. Therefore, the external cost is as follows:

180 responses x 5 hours/response x $250/hour (consultant) = $225,000

2. Actual Cost Documentation Submission

Broadcasters: The Commission estimates that none of the respondents will require outside assistance to fulfill the reporting requirement. While it is acceptable under program rules to utilize an outside service for this purpose, we estimate it would be a one-for-one substitution with internal cost and hours. Therefore, there is no additional external cost to respondents resulting from this data collection.

MVPDs: The Commission estimates that none of the respondents will require outside assistance to fulfill the reporting requirement. While it is acceptable under program rules to utilize an outside service for this purpose, we estimate it would be a one-for-one substitution with internal cost hours. Therefore, there is no additional external cost to respondents resulting from this data collection.

3. Final Accounting Submission

Broadcasters: The Commission estimates that none of the respondents will require outside assistance to fulfill the reporting requirement. While it is acceptable under program rules to utilize an outside service for this purpose, we estimate it would be a one-for-one substitution with internal cost hours. Therefore, there is no additional external cost to respondents resulting from this data collection.

MVPDs: The Commission estimates that none of the respondents will require outside assistance to fulfill the reporting requirement. While it is acceptable under program rules to utilize an outside service for this purpose, we estimate it would be a one-for-one substitution with internal cost hours. Therefore, there is no additional external cost to respondents resulting from this data collection.

Total Annual Cost (external): $7,125,000 + $225,000 = $7,350,000

14. Estimates of annualized costs to the Federal government:

The Commission estimates that 1,900 broadcast licensees and 180 MVPDs will file Form 2100, Schedule 399 as follows:

1. Cost Estimate Submission:

The Commission will use contractors ($166.00/hour)¹⁶ to review these requests. We estimate that it will take one hour to review each cost estimate submission. After initial review, we expect stations to revise their estimates an average of twice per year.

1,900 participants x 2 filings per year x 1 hour/filing x $166.00/hour = $630,800

2. Actual Cost Submission:

The Commission will use contractors ($166.00/hour),¹⁷ GS 15/5 ($80.63) attorneys and engineers to review these requests. We estimate that approximately 80% of the submissions will be reviewed in one-half (.50) hour each by the contractor. The additional 20% will require one hour to review by contractor staff and one hour to review by GS 15/5 attorney or engineer. The Commission estimates that this will require the following time for review per request:

35,200 submissions (80% of 44,000) x .50 hours/request x $166.00/hour = $2,921,600

8,800 submissions (20% of 44,000) x 1 hour/request x $166.00/hour = $1,460,800

8,800 submissions (20% of 44,000) x 1 hour/request x $80.63/hour = $ 709,544

Total Cost = $5,091,944

3. Final Accounting Submission

The Commission will use contractors ($166.00/hour) to review these requests. We estimate that it will take four (4) hours for the contractor to review each submission.

2,080 submissions x 4 hour/filing x $166.00/hour = $1,381,120

Total Cost to Federal Government: $630,800 + $5,091,944 + $1,381,120 = $7,103,864

15. There are no program changes to this collection. There are adjustments to this collection which are due to the Commission re-evaluating the figures for this collection as follows: -2,320 to the number of respondents, -28,647 to the annual number of responses, -52,667 to the annual burden hours and -$7,650,000 to the annual cost.

16. The Commission does not intend to publish the results of these collections of information.

17. The Commission is not seeking approval to not display the expiration date for OMB approval of these collections of information.

18. There are no exceptions to the certification statement.

B. Collections of Information Employing Statistical Methods:

The Commission does not anticipate that the collection of information will employ any statistical methods.

1 LPTV, TV Translator, and FM Broadcast Station Reimbursement; Expanding the Economic and Innovation Opportunities of Spectrum Through Incentive Auctions, MB Docket No. 18-214 and GN Docket No. 12-268, Report and Order, FCC 19-21 (adopted and released March 15, 2019) (LPTV, TV Translator, and FM Reimbursement Report and Order).

2 Consolidated Appropriations Act 2018, Pub. L. No. 115-141, at Division E, Title V, § 511, 132 Stat. 348 (2018) (codified at 47 U.S.C. § 1452(j)-(n)) (REA).

3 Middle Class Tax Relief and Job Creation Act of 2012, Pub. L. No. 112-96, §§ 6402 (codified at 47 U.S.C. § 309(j)(8)(G)), 6403 (codified at 47 U.S.C. § 1452), 126 Stat. 156 (2012) (Spectrum Act).

4 47 U.S.C. § 1452(j)(1), (j)(2)(A)(iv), (k), (l).

5 47 CFR § 73.3701. Section 73.3701 sets forth the eligibility for reimbursement from the REA for newly eligible LPTV/translator stations and FM stations as a result of the Commission’s broadcast television spectrum incentive auction and subsequent television channel repacking.  The section also outlines the reimbursable expenses, as well as reimbursement procedures and certifications required from stations seeking reimbursement. Section 73.3701 extends the same record keeping requirements previously approved under this Collection for broadcast television station licensees and multichannel video programming distributors (MVPDs) eligible for reimbursement under Section 73.7300(e).

6 LPTV, TV Translator, and FM Reimbursement Report and Order at para. 91.

7 Expanding the Economic and Innovation Opportunities of Spectrum Through Incentive Auctions, Report and Order, GN Docket 12-268, 29 FCC Rcd 6567, 6820 (2014) (Incentive Auction Order).

8 Incentive Auction Order, 29 FCC Rcd at 6820, para. 619.

9 Id.

10 Id. at 6812-6833, paras. 598-654.

11 Media Bureau Finalizes Reimbursement Form for Submission to OMB and Adopts Catalog of Expenses, Public Notice, 30 FCC Rcd 11701 (MB 2015).

12 Incentive Auction Order, 29 FCC Rcd at 6817, para. 610.

13 Incentive Auction Order at 6817, para. 611, n. 1725.

14 See 47 CFR § 0.459.

15 In estimating that 1,300 broadcast stations could be reassigned to a new channel via the repacking process following the Incentive Auction, we acknowledged that the actual number of stations reassigned to new channels may be lower than the estimate contained in the OMB submission. We therefore erred on the side of caution so as not to underestimate the potential burden to broadcasters and MPVDs.

16 This is a weighted average of rates for government contractors covering a range of professional levels, from entry level to management.

17 Id.

12