NEWSReport No. DC 96-97     ACTION IN DOCKET CASE       November
7, 1996
     

FCC SEEKS COMMENT ON PROPOSALS TO CHANGE
               BROADCAST AND CABLE/MDS ATTRIBUTION RULES 
             (MM DOCKETS NO. 94-150, NO. 92-51, NO. 87-154)

     The Commission is seeking further comment in its review of
the broadcast attribution
rules.  These rules, by which we define "cognizable interest" for
purposes of applying FCC
multiple ownership rules, are intended to identify those
interests or relationships that give
their holders a degree of influence or control such that the
holders have a realistic potential to
affect the programming decisions or other core operating
functions of licensees.  In this
proceeding, the Commission is also reviewing the attribution
standards used for the cable-
broadcast station cross-ownership rule and for the
cable/Multipoint Distribution Service
("MDS") cross-ownership rule.    

     The Commission has issued this Further Notice against the
backdrop of the relaxation
of its ownership rules resulting from the passage of the
Telecommunications Act of 1996
("1996 Act").  The Commission now seeks comment on various
matters, including:

     (1) How these ownership rule revisions should affect the
Commission's review
     of the attribution rules. 

     (2)   Whether the Commission should add to the current rules
a new attribution
     rule, which would limit, but not eliminate, the
single-majority shareholder and
     nonvoting stock exceptions to the attribution rules.  Under
this approach, the
     Commission would attribute the otherwise nonattributable
interests of holders of
     equity and/or debt in a licensee or media entity subject to
the broadcast cross-
     ownership rules where the interest holder is a program
supplier to a licensee or
     a same market broadcaster or other media entity subject to
the broadcast cross-
     ownership rules and the equity and/or debt holding exceeds a
specified equity
     and/or debt threshold. 

     (3) Proposals concerning attribution of Local Marketing
Agreements ("LMAs") and
     joint sales agreements ("JSAs") in specified circumstances;
and

 -more-

     (4) Whether to revise the cable/MDS cross-ownership
attribution rule by applying
     broadcast attribution criteria, as modified by this
proceeding, in determining cognizable
     interests in MDS licensees and cable systems for purposes of
applying the ownership
     restrictions of Section 21.912 of our Rules. 

     The Commission said it believes that it is important to
ensure that the attribution rules
operate accurately so that the multiple ownership limits can be
applied in an appropriate
manner and so that the attribution rules are not used as a means
to evade or circumvent these
limits.

     As noted, the instant proceeding seeks comment on the
attribution criteria that would
apply to the cable-broadcast station cross-ownership rule that is
set forth in Section 76.501(a)
of the Commission's rules.  The Commission stated that it
recognized that the attribution
standards used in a number of other cable rules are implicitly or
explicitly based on Section
76.501.  For example, the attribution standards in the cable
television horizontal ownership,
channel occupancy and program access rules are derived from these
attribution rules.  The
Commission stated that it is considering initiating a separate
proceeding to address whether to
modify the attribution criteria for these rules.  It further said
that the proceeding adopted
today would address only the attribution criteria that would
apply to Section 76.501(a), the
cable-broadcast station cross-ownership rule, in addition to the
cable/MDS cross-ownership
rule (set forth in Section 21.912) and the broadcast multiple
ownership rules (set forth in
Section 73.3555). 

     Action by the Commission, November 5, 1996, by Further
Notice of Proposed Rule
Making  (FCC 96-436).  Chairman Hundt and Commissioners Quello,
Ness and Chong, with
Commissioners Quello, Ness and Chong issuing separate statements.

-  FCC  -


     News Media Contacts:  David Fiske at (202) 418-0513 or 
     Meribeth McCarrick at (202) 418-0256
     Mass Media Bureau Contacts: Mania K. Baghdadi at (202)
418-2130 
     or Berry Wilson at (202) 418-2170