B-316449

May 28, 2008

The Honorable DanielK. Inouye
Chairman
The Honorable Ted Stevens
Ranking Minority Member
Committee on Commerce, Science, and Transportation
United StatesSenate

The Honorable John D.Dingell
Chairman
The Honorable Joe Barton
Ranking Minority Member
Committee on Energy and Commerce
House of Representatives

Subject: Federal Communications Commission: In the Matter of PromotingDiversification of Ownership in the Broadcasting Services

Pursuant to section801(a)(2)(A) of title 5, United States Code, this is our report on a major rulepromulgated by the Federal Communications Commission (the Commission), entitledIn the Matter of Promoting Diversification of Ownership in the BroadcastingServices (FCC 07-217). We received therule on May 2, 2008. It was published in the Federal Register as a final rule on May 16, 2008. 73Fed. Reg. 28,361. The rule has a statedeffective date of July 15, 2008.

The final rule expands opportunities for participation inthe broadcasting industry by new entrants and small businesses, includingminority- and women-owned businesses.Among other changes, the rule will allow eligible entities acquiring anexpiring construction permit additional time to build the facility; modifiesthe equity/debt plus attribution standard; and bars discrimination on the basisof race, gender, and related protected categories in broadcasttransactions.

Enclosed is our assessment of the Commissions compliancewith the procedural steps required by section 801(a)(1)(B)(i) through (iv) oftitle 5 with respect to the rule. Ourreview indicates that the Commission complied with the applicable requirements.

If you have any questions about this report or wish tocontact GAO officials responsible for the evaluation work relating to thesubject matter of the rule, please contact Michael R. Volpe, Assistant GeneralCounsel, at (202) 512-8236.

signed

Robert J. Cramer
Associate General Counsel

Enclosure

cc: Thomas Horan
Chief of Staff, Media Bureau
Federal Communications Commission

ENCLOSURE

REPORT UNDER 5 U.S.C. sect.801(a)(2)(A) ON A MAJORRULE
ISSUED BY THE
FEDERAL COMMUNICATIONS COMMISSION
ENTITLED
"IN THE MATTER OF PROMOTING DIVERSIFICATION OF
OWNERSHIP IN THE BROADCASTING SERVICES"
(FCC 07-217)

(i) Cost-benefit analysis

The Federal Communications Commission (the Commission) isnot required to prepare and did not prepare a cost-benefit analysis for thefinal rule.

(ii) Agency actions relevant to the Regulatory FlexibilityAct, 5 U.S.C. sections603605, 607, and 609

The Commission prepared an Initial Regulatory FlexibilityAnalysis for the Notice of Proposed Rulemaking, a Supplemental InitialRegulatory Flexibility Analysis for the Further Notice of Proposed Rulemaking,and a Second Supplemental Initial Regulatory Flexibility Analysis for theSecond Further Notice of Proposed Rulemaking.For the final rule, the Commission prepared a Final RegulatoryFlexibility Analysis.

(iii) Agency actions relevant to sections 202205 ofthe Unfunded Mandates Reform Act of 1995, 2 U.S.C. sections15321535

As an independent regulatory agency, the Commission is notsubject to the Unfunded Mandates Reform Act of 1995.

(iv) Other relevant information or requirements underacts and executive orders

Administrative Procedure Act, 5 U.S.C. sections551 etseq.

The Commission issued a Notice of Proposed Rulemaking,Further Notice of Proposed Rulemaking, and a Second Further Notice of ProposedRulemaking. Each of these documents solicitedcomments and was published on the Commissions website. The Commission discussed comments regardingissues of interest to small entities in the final rule. 73 Fed. Reg. 28,36768.

Paperwork Reduction Act, 44 U.S.C. sections35013520

This final rule contains new or modified informationcollection requirements that the Commission will submit to the Office ofManagement and Budget under the Act.

Statutory authorization for the rule

The Commission promulgated this final rule under theauthority of sections 1, 2(a), 4(i), 257, 303, and 307310 of theCommunications Act of 1934, as amended.47U.S.C. sections 151, 152(a), 154(i), 257, 303, 307310.

Executive Order No. 12,866

As an independent regulatory agency, the Commission is notsubject to the review requirements of the order.