Supporting Statement OMB 3060-1065 DBS (2022)

OMB Control Number: 3060-1065 November 2022

Section 25.701, Direct Broadcast Satellite (DBS) Public Interest Obligations

SUPPORTING STATEMENT

1. Justification:

History:

1. In 2019, the Commission adopted new rules governing the delivery and form of carriage election notices. Electronic Delivery of MVPD Communications, Modernization of Media Regulation Initiative, MB Docket Nos. 17-105, 17-317, Report and Order and Further Notice of Proposed Rulemaking, FCC 19-69, 2019 WL 3065517 (rel. Jul. 11, 2019). Pursuant to that decision, the public file obligations of DBS providers were slightly modified.

Therefore, the following information collection requirement needs review and approval from the Office of Management and Budget (OMB):

47 CFR 25.701(f)(6)(i)(D) requires that each satellite carrier shall provide an up-to-date email address for carriage election notice submissions and an up-to-date phone number for carriage-related questions. Each satellite carrier is responsible for the continuing accuracy and completeness of the information furnished. It must respond to questions from broadcasters as soon as is reasonably possible.

These information collection requirements have not changed since they were last approved by OMB; therefore, they remain unchanged:

47 CFR 25.701(c)(1)(i)(C) states DBS providers may establish and define their own reasonable

classes of immediately preemptible time so long as the differences between such classes are based on one or more demonstrable benefits associated with each class and are not based solely upon price or

identity of the advertiser. Such demonstrable benefits include, but are not limited to, varying levels of preemption protection, scheduling flexibility, or associated privileges, such as guaranteed time sensitive

make goods. DBS providers may not use class distinctions to defeat the purpose of the lowest unit charge requirement. All classes must be fully disclosed and made available to candidates.

47 CFR 25.701(c)(1)(i)(D) states DBS providers may establish reasonable classes of preemptible with notice time so long as they clearly define all such classes, fully disclose them and make them available to candidates.

47 CFR 25.701(c)(1)(i)(E) states DBS providers may treat non preemptible and fixed position as distinct classes of time provided that they articulate clearly the differences between such classes, fully disclose them, and make them available to candidates.

47 CFR 25.701(c)(1)(i)(I) states DBS providers shall review their advertising records periodically throughout the election period to determine whether compliance with this section requires that candidates receive rebates or credits. Where necessary, DBS providers shall issue such rebates or credits promptly.

47 CFR 25.701(c)(1)(i)(M) states DBS providers must disclose and make available to candidates any make good policies provided to commercial advertisers. If a DBS provider places a make good¹ for any commercial advertiser or other candidate in a more valuable program or daypart, the value of such make good must be included in the calculation of the lowest unit charge for that program or daypart.

47 CFR 25.701(c)(1)(ii) states at any time other than the respective periods set forth in

paragraph (c)(1)(i) of this section, DBS providers may charge legally qualified candidates for public office no more than the charges made for comparable use of the facility by commercial advertisers. The rates, if any, charged all such candidates for the same office shall be uniform and shall not be rebated by any means, direct or indirect. A candidate shall be charged no more than the rate the DBS provider would charge for comparable commercial advertising. All discount privileges otherwise offered by a DBS provider to commercial advertisers must be disclosed and made available upon equal terms to all candidates for public office.

47 CFR 25.701(d) states each DBS provider shall keep and permit public inspection of a complete and orderly political file and shall prominently disclose the physical location of the file, and the

telephonic and electronic means to access the file.

(1) The political file shall contain, at a minimum:

(i) A record of all requests for DBS origination time, the disposition of those requests, and the charges made, if any, if the request is granted. The ``disposition'' includes the schedule of time purchased, when spots actually aired, the rates charged, and the classes of time purchased; and

(ii) A record of the free time provided if free time is provided for use by or on behalf of candidates.

(2) DBS providers shall place all records required by this section in a file available to the public as soon as possible and shall be retained for a period of four years until December 31, 2006, and thereafter for a period of two years.

47 CFR Section 25.701(e)(3) requires Direct Broadcasting Satellite (DBS) providers airing children's programming to maintain records sufficient to verify compliance with this rule and make such records available to the public. Such records must be maintained for a period sufficient to cover the limitations period specified in 47 U.S.C. Section 503(b)(6)(B). In the Report and Order, the Commission revises the rules to permit DBS operators to file their certifications of compliance with the commercial limits in children’s programming annually rather than quarterly and to permit the filing of these certifications within 30 days after the end of the calendar year.

47 CFR 25.701(f)(6) states that each DBS provider shall keep and permit public inspection of a complete and orderly record of:

(A) Quarterly measurements of channel capacity and yearly average calculations on which it bases its four percent reservation, as well as its response to any capacity changes;

(B) A record of entities to whom noncommercial capacity is being provided, the amount of capacity being provided to each entity, the conditions under which it is being provided and the rates, if any, being

paid by the entity;

(C) A record of entities that have requested capacity, disposition of those requests and reasons for the disposition.

(ii) All records required by this paragraph shall be placed in a file available to the public as soon as possible and shall be retained for a period of two years.

The statutory authority which covers this information collection is contained in 47 USC 335 of the Communications Act of 1934, as amended.

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

2. The political broadcasting reporting, recordkeeping requirement, and third-party disclosure requirements in this information collection will be used by the public to assess money expended and time allotted to a political candidate and by the Commission to ensure that equal access is afforded to other qualified candidates. The Commission will use the children’s programming recordkeeping burden to verify compliance with the commercial limits established in 47 CFR § 25.701(e), and by the public to assess the DBS provider’s compliance with the commercial limits. The carriage election contact information will be used by broadcasters to notify DBS providers when their carriage election changes from retransmission consent to must carry, or vice versa.

3. The Commission finds that the use of information technology is not appropriate for the recordkeeping requirements and third-party disclosure requirements adopted in the Second Order. However, the Second Order does make provisions for the use of electronic technology in making information available to the public. For example, rather than responding to individual requests from members of the public to view political broadcasting files, the Second Order finds that DBS providers may place their political files on their webpage. The carriage election contact information will be available electronically via each DBS provider’s Online Public Information File.

4. The Commission does not impose a similar information collection on the respondents. There are no similar data available.

5.. This information collection does not impose any significant economic impact on a substantial number of small businesses/entities. However, any entity can request a waiver of the Commission’s rules, under 47 CFR § 1.3, which allows the Commission to waive rules where good cause has been shown.

6. If this information collection was not collected the Commission would have no way of assuring that the public has access to the political broadcasting and children’s programming information relating to DBS services. Equally important, the Commission would have no way of verifying whether DBS providers are complying with its political broadcasting and children’s programming commercial limits. This could lead to favoritism in according political broadcast time, or an excessive, potentially harmful amount of commercials on children’s programming. If the carriage election contact information were not collected, broadcasters would be unable to notify DBS providers of their carriage election status, jeopardizing either their availability to DBS subscribers or potential revenues for retransmission consent.

7. Current data is consistent with 5 CFR § 1320.5.

8. The Commission published a Notice in the Federal Register on September 7, 2022 (87 FR 54688). The Commission received no comments following publication of the Notice.

9. Respondents will not receive any payments.

10. Although the Commission does not believe that any confidential information will need to be disclosed in order to comply with the information collection requirements, applicants are free to request that materials or information submitted to the Commission be withheld from public inspection. (See 47 CFR § 0.459 of the Commission’s Rules).

11. This information collection does not address any private matters of a sensitive nature.

12. The public burden is as follows:

Number of Annual Respondents: 2 DBS Providers²

Number of Annual Responses: 2 responses³

1. 47 CFR 25.701(c)(1)(i)(C), 47 CFR 25.701(c)(i)(D), and 47 CFR 27701(c)(1)(i)(E) Establishment, Definition, and Disclosure of Classes: The Commission estimates 2 hours for each task: 1) establish, define, and disclose their own classes of immediately preemptible time for political candidates, 2) establish, clearly define, and disclose classes of preemptible with notice time for political candidates, and 3) clearly define and disclose the difference between non preemptible and fixed positions classes of time. This should be a one-time burden -- approximately 6 hours per licensee.

2 DBS provider x 6 hours/task = 12 hours

2. 47 CFR 25.701(c)(1)(i)(I) Periodic Review of Advertising Records and Issuance of Rebates or Credits Where Appropriate: The Commission estimates about 2 hours annually to conduct periodically a thorough review of advertising records and issue rebates or credits where appropriate.

2 DBS providers x 2 hours/task = 4 hours

3. 47 CFR 25.701(c)(1)(i)(M) Disclosure of “Make Good” Policies: The Commission estimates about 1 hour to make available any make good policies. This should be a one-time burden.

2 DBS providers 1 hour/task = 2 hours

4. 47 CFR 25.701(c)(1)(ii) Disclosure of Other Discount Privileges: The Commission estimates 1 hour annually for disclosure requirements.

2 licensees x 1 hour/disclosure = 2 hours

5. 47 CFR § 25.701(d) Political File and Public Availability Burden: The Commission estimates 10 hours annually to establish and maintain political broadcasting files.

2 DBS providers 10 hours of maintaining files = 20 hours

6. 47 CFR § 25.701(e)(3) Children’s Programming Recordkeeping: The Commission estimates 1 hour1 i annually for the recordkeeping requirement

2 licensees x 1 hour of recordkeeping = 2 hours

7. 47 CFR § 25.701(f)(6). Channel Capacity and Noncommercial Entity Recordkeeping Requirement: The Commission estimates that this burden will take each DBS provider about 3 hours to comply with on an annual basis.

2 licensees x 3 hours/task = 6 hours

8. 47 CFR § 25.701(f)(6)(i)(D) Post Contact Information: The Commission estimates 0.5 hours annually for the requirements covered under this rule section.

2 licensees x 0.5 hours per response = 1 hour

Total Annual Burden Hours: 12 + 4 + 2 + 2 + 20 + 2 + 6 + 1 = 49 hours

Annual “In-house” Cost: The Commission believes that all of the burdens will be carried out by management or sales staff of the DBS service provider at approximately $48.08 per hour:

49 hours x $48.08/hour for staff time = $2,355.92 Total Annual “In House” Costs

13. Annual Cost Burden:

1. Total annualized capital/startup costs: None

(b) Total annual costs (O&M): None

(c) Total annualized cost requested: None

13. There is no cost to the Federal Government.

15. There are no program changes or adjustments to this collection.

16. The data will not be published.

17. OMB approval of the expiration of the information collection will be displayed at 47 CFR § 0.408.

18. There are no exceptions to the Certification Statement.

2. Collections of Information Employing Statistical Methods

This information collection does not employ any statistical methods.

1“Make goods” are defined as the rescheduling of preempted advertising.

2 These respondents make up the majority of their universe of respondents. Therefore, OMB approval is needed for this collection.

3 Since the requirements are done in terms of tasks, it is difficult for the Commission to quantify the number of responses. Section 25.701(f)(6)(i)(D) requires a single initial response, but will not require any additional responses if the relevant contact phone number and email address do not change. Therefore, the Commission is leaving the number of responses as they currently are approved in OMB’s inventory.

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