FCC Proposes Regulatory Fees for 2012

The FCC just released its Notice of Proposed Rulemaking to establish the regulatory fees to be paid by each of the entities that it regulates. Each year, before the FCC collects its annual regulatory fees from broadcasters and other entities subject to its oversight, it asks for comments on the amount of those fees.  This year, as has been the case in most of the past few years, there are few changes proposed in this Notice, thought the Commission does promise to issue additional rulemakings later this year, looking to readjust fees to take into account changes in the communications industry since these fees were first imposed almost 20 years ago.  Look, for instance, for a change to be proposed in the relative fees for UHF and VHF stations, which still reflect the analog world where VHF stations were more valuable. 

But any fundamental changes in the fees won't be effective until 2013.  Essentially, the NPRM proposes just minor changes in fees so that the FCC can collect its 2012 fees in September.  The NPRM basically makes very small adjustments in the fees for broadcast stations, which are based on population coverage, to include numbers based on 2010 census data.  The fees proposed for broadcasters are set out below.  Comments on these proposals are due on May 31, with replies on June 7.  The exact dates on which these fees will be collected will be announced after the conclusion of this rulemaking proceeding.

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December 1 Deadline for Biennial Ownership Reports Begins A Busy Regulatory Month for Broadcasters

All commercial broadcasters (AM/FM/TV and even LPTV) have to file their Biennial Ownership Reports on December 1, beginning a very busy month in the broadcaster's regulatory world.  December 1 is also the deadline for noncommercial ownership reports to be filed by noncommercial radio stations in Alabama, Connecticut, Georgia, Massachusetts, Maine, New Hampshire, Rhode Island and Vermont, and noncommercial television stations in Colorado, Minnesota, Montana, North Dakota and South Dakota (see our Advisory here)Annual EEO Public File reports are also due to be in station files for stations in all of the states where noncommercial stations have ownership filings (see our Advisory on the EEO Public File Report here).  License renewals for radio broadcasters in Georgia and Alabama are also due on that date (see our License Renewal advisory here) , as are the Commission’s cut of the ancillary and supplementary revenues made by digital television broadcasters (our summary here).  And all full-power broadcasters need to file their reports on the results of the recent Nationwide EAS Test by December 27 (see our post here).

December also brings a Commission meeting, at which the CALM Act rules will be adopted according to the tentative agenda for the December 12 meeting.   The CALM Act is intended to eliminate loud commercials.  These rules are required by statute to be adopted in December (see our summary of the proposed rules here).  Comments on a number of other FCC proposals in rulemaking proceedings are also due. The FCC just announced  that comments in the proceeding to determine if FM digital operations using the IBOC technology (so-called HD Radio) can operate with different power levels on each side of the main channel are due by December 19 (see our summary of this proceeding here). Comments on the controversial proposal for the online public inspection file for television stations are due on December 22.

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FCC Regulatory Fee Deadline Extended Until September 16

The FCC today announced a brief extension, until the end of the day tomorrow, for the submission of annual regulatory fees.  No explanation for the extension is provided. So you now have until 11:59 Eastern time tomorrow to get those fees submitted without facing late fees and penalties.  The FCC Public Notice announcing the extension is here.  Our previous post on these fees, setting out the procedures for filing and other details, is available here.

FCC 2011 Annual Regulatory Fees Due by Sept. 14, 2011

The FCC has now released its Public Notice formally announcing the payment deadline for the 2011 Annual Regulatory Fees, which will be due by 11:59 pm E.T. on September 14, 2011.  The fees must be processed electronically using the FCC's Fee Filer website, which can be accessed here.   That site is now ready to accept the payment of the 2011 Regulatory Fees, and licensees must log-on to the Fee Filer website using their FRN (FCC Registration Number) and password to review the fees that have been pre-populated in for that particular licensee.  While the list of stations and authorizations reflected in the database should be similar to the list from last year, licensees should carefully review the information and ensure that all stations and authorizations held by the licensee are included.  In particular, stations acquired during the year or new broadcast auxiliaries obtained during the year may not appear on the list and may need to be added. Please note, the FCC will not mail a bill or a reminder to broadcast stations this year, so it is the responsibility of each licensee to determine the extent of its reg fee obligation. 

More information regarding the annual regulatory fees, including instructions for submitting the fees, is available from the Regulatory Fees page of the FCC’s website, available here. UPDATE:  In addition, with regard to broadcast radio and television stations, the FCC has made available a “look-up” database to allow licensees of broadcast stations to confirm the amount owed for each particular station. That look-up database is now available at: www.fccfees.com

Consistent with the procedures adopted last year, all licensees are required to pay the annual regulatory fees online via the FCC’s Fee Filer website. In order to access the Fee Filer website and remit the regulatory fee payment, licensees must have a valid FCC Registration Number (FRN) and related password. Payment may be made electronically by credit card or debit card, by check or money order, or by wire transfer. If a licensee prefers to remit payment by check or money order, the licensee must first use the FCC’s electronic Fee Filer system to create a Form 159-E voucher generated by the Fee Filer system. That Form 159-E voucher must then accompany the submission of payment by check or money order, which must be sent to the FCC’s receiving bank in St. Louis, Mo. 

As in the past, payments received after 11:59 pm E.T on Sept. 14, 2011, will automatically incur a 25% late payment fee.  So licensees are encouraged to review and pay their reg fees early to avoid any penalty.  For those needing more details, please see the Commission's full reg fee Order, which contains the 2011 fees for all types of authorizations.

FCC Sets Regulatory Fees for Fiscal Year 2011 - Look for August or September Payment Deadline

The FCC has announced the final amount of its regulatory fees for FCC Fiscal Year 2011 - fees that will be due during a window not yet announced - but likely sometime in late August or September.  The Fees, set out below, are pretty much identical to those that were proposed in May, when the FCC sought comments on these fees.  The procedures for filing will be much the same as in the recent past, though the FCC did make a few clarifications on some issues affecting broadcasters.  These issues include the following:

  • The FCC will no longer mail notices to broadcasters about their fee obligations.  Instead, stations will need to go to the FCC website to verify the amount of the fees they owe.  Look for the site containing that information to be live in the next few weeks.
  • The FCC decided that LPTV and TV translator stations that operate both analog and digital facilities during their digital transition will pay only one fee.  As we wrote last week, that transition will end (barring reconsideration or other review of last week's order) for stations operating on Channels 52-69 at the end of the year, and will end in 2015 for all other LPTV and TV translator stations. 
  • The FCC promised to start a new rulemaking before the end of the year to reassess the allocation of the regulatory fee burden.  Within the broadcast industry, that would mean looking at issues such as whether VHF television stations should pay more than UHF stations for their fees - when in the digital world, most think that UHF channels are actually more valuable than those on the VHF band.  But, with potentially more impact, the FCC would look at rebalancing its fees over all the different industries that it regulates. Congress gives the FCC a specific amount of fees that it must raise from all of the industries that it regulates.  The percentage that broadcasters pay has been unchanged for many years.  The FCC is going to review that allocation to assess how business in the various industries have changed to see how those allocations should be changed in the future.

The FCC also reminded broadcasters that they needed to make the payments on time to avoid late fees and interest charges.  Broadcasters pay fees based on a station's status as of October 1, 2010.  Thus, a station that was an unbuilt CP as of October I, 2010, but has subsequently been constructed, still pays the CP fee for this year.  The same goes for stations that have received upgrades in the period after October 1 - they pay only the amount due for their status as of October 1, 2010.  However, if a station has changed ownership since October 1, the new owner is still the one liable for the fee payment.  The broadcast regulatory fees for this year are set forth below:

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FCC Proposes Revised Application Filing Fees

Last week, amid the flurry of other actions taken on retransmission consent, rural radio and video accessibility, the Commission released its proposal for revisions to its regulatory filing fees, as it is required to do every two years.  The proposed fees for broadcast applications are set out below.  No other changes in any of the fees or fee categories are proposed.  According to the FCC proposal, the fees will rise by the amount of the cost of living increase since the last time the fees were adjusted - thus the cost to file FCC applications will rise by 3.5%.

Comments on the proposed fees are due 15 days after the Notice is published in the Federal Register, with replies due 30 days after that publication.  The table below sets out the fees for broadcast applications for main stations.   Proposed fees for applications for broadcast auxiliaries and other non-broadcast services are set out in the Notice of Proposed Rulemaking

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FCC Changing Financial Systems - Make Sure Your Fees Are Up To Date, and Plan Application Filings as There May Be Processing Delays in Early October

If a broadcaster or other FCC regulatee has not paid their regulatory fees when they are due, the FCC's computer system will show a "red light" on the company that owed the fee - and the FCC will not grant any applications filed by that company.  As it is, it can take days, and sometime weeks, to straighten out issues about the non-payment or late payment of fees.  Well, the process may get more difficult in the near future as, according to a Public Notice released today, the FCC is changing its financial system in October - which may make the system unavailable from October 1 through October 18.  Thus, problems with past due fees, and possibly even fees paid in connection with new applications, may not show up in the Commission's system during that period.  Even for time-sensitive new applications, where the FCC wants to know if the appropriate application fee has been paid before an application is granted, delays may occur.  Thus, the FCC warns applicants to plan their filings accordingly to avoid this period, if possible.

The Public Notice seems to anticipate that fees paid by check, as opposed to using the on-line payment system, will be subject to greater processing delays.  So review the Public Notice, and plan accordingly, to avoid any unnecessary processing delays during this period. 

Details of FCC Regulatory Fee Filing Obligations - Get Ready for August 31 Deadline

The FCC now has sent notices to broadcast stations about their obligation to pay regulatory fees by August 31.  Last week, it issued three public notices about the fees - one simply announcing that the fees are due by that date, one setting out the procedures for filing the regulatory fees, and a third reminding all filers that they need to pay using the FCC's on-line Fee Filer system.   The FCC's website is operational, and broadcasters can begin the process of completing the necessary filings.  Davis Wright Tremaine has summarized all the filing obligations in an advisory on the FCC's regulatory fee filing obligations sent out last week, and available here.  To avoid delays in processing applications, and to avoid fees and penalties, be sure to pay your fees on time.  And, as set forth in the DWT Advisory, don't forget to figure out the fees due for your broadcast auxiliary stations (e.g. your STLs and Remote Pick-ups), as these licenses are not contained in the fee notice sent to you by the FCC.  So be prepared for the August 31 deadline. 

FCC Annual Regulatory Fees Due August 31st

The FCC's Annual Regulatory Fee web site, available at  www.fccfees.com, is now active and indicates that the Reg Fees are due by 11:59 PM EDT on August 31, 2010.  A further public notice, which will include detailed instructions on how to access the FCC's Fee Filer database and remit the payment of the fees, should be forth coming from the Commission, likely by the end of the week.  But in the meantime stations can plug their call signs into this "look-up" database and confirm the amounts owed for each facility.  Once the FCC's full public notice is released we will have more details and will post a further advisory on paying the fees, but for now it appears that deadline for this year's Regulatory Fees has been set for August 31st.  Stations should plan their payments accordingly and be sure to avoid the automatic 25% penalty for late payment for any fees paid after midnight on August 31st.

FCC Announces One Million Dollar Payola Consent Decree With Univision - What's It Mean for Radio Broadcasters?

The FCC today announced a $1,000,000 Consent Decree with Univision Radio to settle payola investigations underway at both the FCC and the Department of Justice.  Payola, or "pay for play" as it is called in the FCC Press Release issued today, is a violation of FCC rules and Federal criminal law, which both prohibit the broadcast of program content for which payment was received without disclosing the receipt of that consideration.  The payment of money to programming employees in exchange for the playing of certain music on the radio has been the situation where pay-for-play has received the most publicity.  Where payment is made for playing a song, without acknowledging to the public that the station's decision to play the music was based on payments and not on the station's determination of the merit of the music being played, then a violation exists.  In many cases, it is station employees who receive the payment, sometime unknown to station management.  But where the station has not taken sufficient steps to guard against pay-for-play situations by its employees, the licensee can still face penalties.  The Consent Decree sets out specific steps for Univision to take to make sure that the situations alleged to have occurred at the company's stations don't reoccur in the future.

The Consent Decree is virtually identical to the $12.5 million in settlements reached three years ago with four of the country's largest radio broadcast companies.  At that time, we published an advisory that explored each of the provisions of the Consent Decree and the obligations that it imposed on the broadcasters that were involved - and suggested that all stations use it as a Guide to their operations to insure that they, too, don't find themselves facing a similar situation in the future.  As payola seems to run in cycles, check out our Guide and make sure that you are taking steps to insure compliance with the FCC rules and policies on payola.

FCC Sets Regulatory Fees - Payment Date Not Yet Set

The FCC has released its order setting this year's Regulatory Fees to be paid by broadcast stations.  While has not yet set the deadline for paying those fees, that deadline should fall sometime in August or September.  In setting this year's fees, the Commission made some decisions about fees for broadcasters that may not make sense to some - but it promised to review the decisions in the future when determining the amounts of fees in future years.  Perhaps the most controversial issue will be the fees that it set for television stations - which retain the distinction between UHF and VHF stations, and retain the requirement that VHF stations pay significantly higher fees - even though such stations are often disadvantaged (and certainly not advantaged) in the digital world.  Fees for television stations range from $81,550 for VHF stations in the Top 10 markets (versus $32,275 in those markets for UHF stations), to $6125 for VHF stations in the smallest markets versus $3050 for UHF stations.  The many stations now operating digitally on UHF channels that had previously operated on VHF channels in analog will receive some big savings, while some stations forced to operate on VHF channels for the first time may well be in for a surprise as to the reg fees that they will be paying.

The Commission also rejected requests to decrease the amount paid by AM stations in comparison to FMs, though it promised to revisit that issue in the future.  Other proposals to base payment directly on population served by a station were also rejected.  For TV translators and LPTV stations, if an entity is operating both an analog and digital station while in the process of its digital conversion, fees will have to be paid on both stations.  Full-power television stations will have to pay on their digital operations, even if they were operating with STA facilities on October 1, 2009, the beginning of the fiscal year for which these fees are paid.  All fees are based on the facilities of a station as of that date.  Specific fees for broadcasters are set out below.

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FCC Proposes 2010 Annual Regulatory Fees

The FCC today released a Notice of Proposed Rulemaking asking for public comment on its proposed Regulatory Fees for 2010. These fees are paid annually by most commercial entities that are regulated by the FCC for the privilege of being regulated. Noncommercial broadcasters are exempt from the annual regulatory fees. Collectively, the FCC is proposing to collect over $335 million in fees this year from licensees across the various regulated services. The fees are normally paid in September, and the specific deadline for the payment of this year’s fees will be set by a future Order after the FCC has received comments on, and formally adopted, this proposed fee schedule. The FCC has set a short time for comments, with initial Comments on the proposed fees due by May 4, 2010, and Reply Comments due on May 11, 2010.

As in the past, the Regulatory Fees for broadcast stations are generally based on the Class of Service and the population covered by a station. For the most part, the fees proposed for 2010 for broadcast stations are not much different from the 2009 rates, with the fees for a few categories of television stations actually going down slightly. Additionally, there is no change in the fee proposed for LPTV, Class A, and television translator stations.  The full list of proposed fees across the various categories of broadcast stations is provided below.  A few things to note with respect to the fees with respect to digital television stations. The NPRM proposes to collect annual regulatory fees from all digital full-service television stations, including any that may have been operating pursuant to Special Temporary Authority (rather than a license) on October 1, 2009.  With respect to low power and Class A television stations, the FCC has proposed that if a station is operating both an analog and a paired digital signal, then only a single regulatory fee will be assessed for the analog facility and no fee would be required for the digital companion channel.

Not surprisingly, the Commission has proposed to make the use of its electronic Fee Filer database  for the submission of the annual regulatory feesmandatory again, as it was in 2009.  It has also proposed that 2010 will be the last year that it will send out reminder letters to broadcast stations about the fees. Starting in 2011, the FCC is proposing to discontinue sending out media notification letters. As the payment deadline will be sometime in September, watch for an Order this Summer adopting the proposed fees, after folks have had a chance to comment. 

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FCC Regulatory Fees Are Due By September 22, 2009

The FCC has announced the due date for their Annual Regulatory Fees - September 22.  We wrote about the amount of those fees here, and have just published an advisory summarizing some of the filing details.  Our Davis Wright Tremaine Advisory on these fees is available here.  Being even one day late with the payment of these fees can result in a penalty late fee of 25% of the amount due - a stiff penalty for being even a little late.  So read the advisory, review the FCC's instructions in the notices that the Commission is now sending to broadcasters, and check out to the links that the FCC's website information that are available through the advisory - and then pay what you owe on time!

Broadcasters Beware: Failure to Timely Renew Earth Stations Can Draw Large Fines

The Commission today released yet another forfeiture for what has become an increasingly common oversight among broadcasters -- the failure to timely file a license renewal application for a satellite earth station.  What made today's forfeiture unique, however, is the fact that the Commission proposed to double the amount of the forfeiture based on the size of the broadcast licensee and its presumed ability to pay such a fine.  After balancing all the factors, the Commission ultimately ratcheted the fine down a bit, but in the end it assessed a $25,000 fine for the failure to timely file license renewal applications for two earth stations and for the continued operation of those facilities without proper authority.  In light of today's decision, broadcasters should be sure to review and track the expiration dates for all FCC authorizations. 

The FCC's decision in this case makes clear that in imposing a large fine in this case it is attempting to send a message that the Licensee will heed.  Per the Commission's decision:  "This $16,000 forfeiture amount [the baseline forfeiture]  is subject to adjustment, however.  In this regard, we consider the size of the violator and ability to pay a forfeiture, as well as its prior violation of the same rule sections before us today.  To ensure that forfeiture liability is a deterrent, and not simply a cost of doing business, the Commission has determined that large or highly profitable companies such as [Licensee] , could expect the assessment of higher forfeitures for violations, and that prior violations of the same or other regulations would also be a factor contributing to upward adjustment of apparent liability.  Given [Licensee's] size and its ability to pay a forfeiture, coupled with its previous violation, we conclude that an upward adjustment of the base forfeiture amount to $32,000 is appropriate."  [Emphasis added.]  In reaching its decision, the Commission noted that the Licensee in this case was a large broadcaster with "net yearly sales" of over $110 million.  

This forfeiture should serve as a clear warning to broadcasters both big and small to review and track the expiration dates of any earth stations or other authorizations held by a broadcast station.  Rarely (if ever) will the license term of an earth station authorization coincide with the renewal of the parent broadcast station, which means it is easy for the earth station to slip through the cracks.  

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FCC Announces Annual Regulatory Fees - Payment Deadlines Not Yet Set

The FCC has released its Order setting the amounts of the annual regulatory fees for broadcasters - though the window for making those payments has not yet been set.  Look for that window to be set in the near future, as payments will probably be due in September.  Broadcast fees are based on the class of facility and the population covered by the station.  All fees are based on the status of the station as of October 1 of 2008.  Click on "continue reading" below to see the amount of the fees to be paid by broadcasters. 

In its order, the FCC declined a request to broaden the categories of broadcast stations that were suffering from financial hardship justifying a waiver of the rules.  Stations seeking a financial hardship waiver must provide the FCC with sufficient financial information, including profit and loss statements and a showing of how much the station's owners were receiving as compensation, for the Commission to make a determination that the payment of the fees would pose an undue hardship on the station.  The FCC did say that bankruptcy or receivership, or the fact that a station was silent or dark, would be viewed as evidence of financial hardship. 

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Reminder: New FCC Application Fees Go Into Effect Today

Last month, we warned readers that the FCC application fees were going up.  And today is the day that the new fees take effect.  So, if you are planning an FCC filing today or at any time in the future, remember to pay those higher fees - or face the risk of having your application bounced by the FCC for insufficient payments.

And, while we are on the subject of fees, the agenda for next month's FCC meeting calls for a Notice of Proposed Rulemaking on the regulatory fees that stations pay each year in August or September to cover the costs of FCC regulation.  While this is, in most years, a somewhat routine process of authorizing the year's fees with only minor tweaks from previous years, this year it could be different.  Commissioner Robert McDowell has been questioning why the FCC collects more money than it needs to operate - and is now essentially a profit-making enterprise.  (See his speech, here, at pages 4 and 5)  So watch for that discussion next month.

 

Higher FCC Application Fees to Finally Go Into Effect on April 28

The FCC today released a Public Notice announcing that, after many false starts, it is making effective the new schedule of higher application fees on April 28.  We wrote about the on-again, off-again effectiveness of these new fees which, this time, seem quite clearly to be about to become effective.  The schedule of new fees can be found appended to the FCC's order adopting the fees, here.  Common application fees include a $940 fee for the submission of an application for a minor technical change to a broadcast station (FCC Form 301), or for a transfer of control (FCC Form 315) or assignment of license (FCC Form 314).  The fee to submit an ownership report (FCC Form 323) will be $60 per station, and a request for Special Temporary Authority will be $170.  To avoid having applications rejected for insufficient fees, be sure to be prepared for the new fees for any application submitted on or after April 28.

FCC Application Filing Fees Did Not Go Up on February 18 - But Stay Tuned

The week before last, we wrote that FCC's filing fees for applications submitted to the Commission would be going up on February 18, and included a link to the FCC Fee Filing Guide for the new fees.  Well, shortly before the supposed effective date, the Filing Guide disappeared from the FCC website, and the new fees have not been programmed into the FCC's electronic filing system.  So those new fees have not become effective yet - though we would expect that they will be soon.  Stay tuned for more information. 

FCC Application Fees Going Up on February 18

Update - February 25, 2009 - The change in fees did not become effective as planned - see our post here

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Months ago, the FCC announced that the fees paid by broadcasters (and other services) for the processing of applications and other filings would be going up.  It was only recently that the notice was published in the Federal Register, and the FCC has now announced that the new fees will go into effect on February 18.  The new fees for broadcast and cable applications can be found in the Media Bureau filing guide, found here.  Most fees will be automatically reflected in the FCC's CDBS electronic filing website when a broadcaster submits an electronic application.  But be prepared for the fees going up.

For example, common application fees include the $940 now charged for a minor technical change in a broadcast station, or for the assignment or transfer of a station.  Call sign changes cost $95, and Special Temporary Authority carries a $170 filing fee.  Ownership Reports are $60.  Look for all of the fees in the FCC's Media Bureau Application Fee Filing Guide.

 

FCC Issues Warning on Fake FCC Fee Filing Sites

The FCC has released a Public Notice, warning regulated entities that there are websites that pretend to be the site on which FCC regulatory fees are to be electronically filed.  These so-called "phishing" sites are apparently out to obtain from broadcasters and other entities regulated by the FCC information about their financial accounts.  The Public Notice reminds broadcasters that the site on which fees are to be paid is www.fcc.gov/feefiler.  If you see some other URL address, beware.  Make sure that you are in fact on the FCC's website before revealing any private financial information.  More on the FCC filing fees can be found in the Davis Wright Tremaine Advisory on the fees, and in our prior posts, here and here

September 25 Deadline for Regulatory Fees - Public Notice on Fee Filings Released

The FCC has released its Public Notice announcing the procedures for submitting Annual Regulatory Fees.  These annual fees are paid by broadcasters and other entities that are regulated by the FCC, essentially for the privilege of being regulated.  We detailed the amount of the fees for broadcasters in our post, here.  Regulatory Fees can already be submitted to the FCC through its on-line filing system or on paper, and some broadcasters have already done so as the Commission's alerts about the specific fees that each station owes were mailed to broadcasters in the last two weeks (minus the information as to the final filing date).  If your station has not received such a notice, check the mailing address that the FCC has on file for your station, as it may not be accurate.  Today's Public Notice sets the deadline date for the filing of regulatory fees as September 25.

The payment of regulatory fees is very important, as the failure to pay on time can cause the FCC to impose a "red light" on a licensee - blocking the processing of any application by the licensee.  In fact, in the last few weeks, the FCC has been sending out delinquency notices to licensees claiming that past regulatory fees have not been paid.  We are finding a significant number of these notices are being sent in error, so watch you mailbox carefully and, if you receive a notice that you failed to pay your regulatory fees for past years, and you did in fact do so, get that discrepancy corrected as quickly as possible to avoid the perceived failure from blocking any application that your station may want to file at anytime in the future. And don't forget to get this year's fees on file by September 25 to avoid late-fees and potential red-light issues.

FCC Sets 2008 Regulatory Fees and Starts Proceeding to Reallocate Future Fees

The FCC today released its schedule for Regulatory Fees that will be paid in September of this year.  The Order set the fees to be paid by entities regulated by the FCC, increasing those fees as required by Congress by approximately 7.5% over the fees paid last year. The fees to be paid by broadcasters are set forth below.  Fees for all other services can be found in the appendix to the FCC's Order setting the fees.  The exact window for paying the fees has not yet been set, but should be announced later this month, in a public notice that will also provide more details on the filing process.  The Order also contains a Further Notice of Proposed Rulemaking, asking if the FCC should change the allocation of fees between the services regulated by the FCC.  As to broadcasters specifically, the FCC asks if it should adopt fees for Digital Television, as the current FCC fees apply only to analog television.  Comments on these issues will be due 30 days after this Order is published in the Federal Register.

In reaching its decision as to the fees for 2008, the FCC decided not to impose a fee on AM expanded band stations for the current fee cycle - but it will decide whether to do so after the FCC decides the issue raised in the pending Diversity proceeding as to whether to allow licensees to retain those AM stations if they are held by a small business entity.

Fees are paid based on the status of the station as of October 1, 2007 (so, for instance, if a station had received an upgrade in the interim, it pays based on its old facilities).  However, the licensee who owns the station as of the date that fees are due is responsible for paying those fees, even if it did not own the station as of October 1, 2007.  Fees for radio are set by a combination of the predicted population served by the station and the class of the station, while TV station's fees are paid based on TV market size.  Parties holding construction permits for new stations pay flat fees regardless of the area served by the proposed station, and there are also flat fees for broadcast auxiliaries, television stations that are authorized as satellites of other stations, and secondary broadcast stations (e.g. translators).  Noncommercial operators are exempt from the fees.  The fees for broadcasters can be seen by clicking on the "Continue Reading" link below. 

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FCC Proposes 2008 Regulatory Fee Schedule

The FCC today released a Notice of Proposed Rulemaking asking for public comment on its proposed Regulatory Fees for 2008.  These fees are paid annually by most commercial entities that are regulated by the FCC for the privilege of being regulated.  Noncommercial broadcasters are exempt from the fees.  The fees are normally paid in August or September, during a period of several days that will be established by the Commission after receiving comments on this proposed fee schedule.  The fees for broadcasters are, as they seemingly always do, increasing.  The Commission is also asking for comment on one specific change in how broadcast fees are collected, asking if it should collect fees from AM station licensees who have expanded band stations for both the expanded band station and the in-core channel, if the licensee is still operating both.  Currently, fees are only paid once by expanded band licensees. 

Broadcast fees are based on Class of Service and the population covered by a station.  For AM stations, the proposed fees are to increase from $400 per station for the least powerful stations in the smallest market to $450, and from $7275 for high-powered stations in the largest markets  to $7925.  For FM stations, the least powerful stations in the smallest markets are proposed to increase from $575 to $600.  For high power stations in big markets, the increase is from $9125 to $10,200.  For TV stations, the fees range from $1875 for a UHF station in the smallest markets, up to $69,400 for a VHF station in the largest markets, up from $1750 and $64,300 last year. 

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Broadcast Calendar for 2008 Available - Reminders on FCC Filing Deadlines, Lowest Unit Rate Windows, SoundExchange Royalty Payment Dates and More

Here we are, almost a full month into the new year, and a number of important dates for broadcasters are already upon us.  As we wrote here, for instance, the payment of a minimum fee to SoundExchange by radio stations streaming their signals on the Internet is due today.  Lowest unit rates are in effect in many states for upcoming Presidential and even some Congressional primaries (see our post announcing the beginning of the LUR period for Super Tuesday).  FCC filing deadlines for Annual Ownership Reports for a number of states are due on February 1, as are EEO Public File Reports for several states.  And, on February 18, full power television stations must file with the FCC a Form 387 Status Report detailing where they are in their transition to digital television in time for the February 2009 transition deadline.  How is a broadcaster to keep all these dates straight?  Check out our advisory on the Important Dates for Broadcasters in 2008, available here, which tracks many of the deadlines that will occur this year - including the dates of routine FCC filings, lowest unit rate windows for political broadcasting purposes, and digital television transition milestones.

And a reminder about February 1 deadlines.  Radio stations in Arkansas, Louisiana, Mississippi, New Jersey, and New York, and television stations in Kansas, Nebraska, and Oklahoma must prepare and file electronically an FCC Form 323 Biennial Ownership Report with the FCC.  Our Advisory on completing and filing the Ownership Report can be found, here.  And radio and television Station Employment Units in Arkansas, Kansas, Louisiana, Mississippi, Nebraska, New Jersey, New York, and Oklahoma must place in their Public Inspection File and post on their website, if they have a website, their FCC Annual EEO Public File Report.   In addition, radio stations in Arkansas, Louisiana, and Mississippi with eleven or more full-time employees must also prepare and file electronically with the Commission an FCC Form 397 Mid-Term EEO Report.  Our Advisory on these filing requirements can be found here.  Stay on top of all these deadlines with our advisory on Important Dates for Broadcasters for 2008.

Regulatory Fee Filer and Broadcast Fact Sheet Now Available

The FCC's Regulatory Fee Filer web site is now available for licensees to prepare and submit their annual regulatory fees in advance of the September 19th deadline.  The website can be accessed here, and allows licensees to submit their fees electronically without the need to fill out a paper Form 159 and mail the fees to the FCC's bank.  Alternatively, if licensees prefer to file in paper with a check, the fee filer web site will allow you to complete and print an FCC Form 159 Remittance Advice to accompany your payment.  A copy of the Commission's Public Notice with the full details is available here.

In addition, the Commission has now released its Media Services Regulatory Fee Fact Sheet with all the pertinent details for broadcast stations.  A copy of the six page Fact Sheet is available here, and provides specifics on fee amounts, payment codes, and how to submit the fees.  Stations are encouraged to start early and make sure their regulatory fees are paid on time to avoid the possibility of a 25% late fee. 

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Annual Regulatory Fees Due Sept. 19th

As the summer hurtles to a close, the FCC has adopted its FY2007 Annual Regulatory Fees, and appears to have set September 19th as the deadline for submitting the annual fees.  (I say “appears to have set” because as of this writing, the FCC has yet to formally announce the deadline for the regulatory fees, but a banner at the top of www.fcc.gov announces that fees are due by September 19, 2007.)  Payment may be made by check or credit card, and can be submitted either in paper or electronically.  Payments not made by 11:59 PM on September 19th will face the addition of a 25% late fee

The Commission has a helpful web page, which includes instructions for submitting the regulatory fees and a “look-up” database to allow stations to confirm the amount owed for their stations.  The site also contains a Frequently Asked Questions section, and links to the database where you can submit the fees electronically.  In addition, for those needing more detail, the Commission’s full Order detailing the fees for all types of licensees is available here.  In addition, the FCC will also release shortly a guide specifically for radio and television broadcast stations with codes, fee amounts, and instructions.  Once that is available from the FCC, we’ll add a link here.      

Licensees are encouraged to submit their fees on time and make sure the payments are accurate.  And be sure to keep a copy of all correspondence or electronic confirmations.  Historically, the FCC’s recordkeeping on regulatory fees has not been the best, and the process seems to be conducted by a third-party contractor, further complicating issues. In addition, failure to timely submit the proper regulatory fee can block the processing of future applications. Accordingly, it is better in the long-run to take some extra time to make sure these fees are paid properly, then to try and deal with the headache later. 

FCC Regulatory Fees for 2007 Proposed - No Inflation Here

On Friday, the FCC issued a Notice of Proposed Rulemaking to establish the fees and collection procedures for the 2007 regulatory fees - the amount that entities regulated by the FCC pay for the privilege of being regulated.  These fees reimburse the US Treasury for the cost of the regulation.  While no one likes to pay these fees, the total amount to be collected by the FCC is actually slightly less than last year, meaning that the proposed regulatory fees for broadcasters are not proposed to increase from the fees paid last year. The proposed fees for broadcasters for 2007, and the fees that were paid in 2006, are found in the attachment to the FCC's Notice.  Fees will be paid at a date to be established later, sometime in August or September.

For radio stations, the fees are based on the Class of station, and the population served by that station.  These fees range from $400 for a Class C AM station serving less than 25,000 people, to $9125 for a Class B or C2 or higher FM station serving over 3,000,000 people.  For AM stations, population is computed based on the 5 mv/m service area.  For FM stations, it is based on the 70 dbu contour.

TV stations will pay between $64,300 for a VHF station in the Top 10 markets, to $1750 for UHF stations in markets below 100.  LPTV stations and TV translators will pay $450.  For each broadcast auxiliary license, a broadcaster will pay $10.

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Reminder -- New FCC Application Fees Go Into Effect Tuesday, October 17th

Just a reminder that the new FCC application filing fees go into effect on Tuesday, October 17th.  As we reported earlier, the FCC has bumped its fees up slightly to reflect the consumer price index increases for the last two years.  Accordingly, licensees will find that the fees for applications submitted to the FCC will be slightly higher starting on Tuesday.  Some examples of the increased fees for typical broadcast applications are as follows:

  

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Increased Application Fees Go Into Effect October 17, 2006

Every two years, the FCC increases its application filing fees in order to reflect the change in the consumer price index.  As it has now been two years since the last increase, on September 6, 2006, the Commission released its Order adopting the new filing fees, which will apply until the fall of 2008.  The new fee amounts have been published in the Federal Register, and will become effective on October 17, 2006.  A copy of the Order including the full listing of the new application fees is available here.  And a few days before the new fees become effective, the FCC will post new fee guides organized by branches (Media Bureau, Common Carrier, etc.) on its web site here

Generally the increases are modest.  For example, in the broadcast realm the fee for ownership reports has increased from $55 to $60 per station; call sign changes have increased from $85 to $90; and assignment applications from $830 to $895 per station. 

So come October 17th, be sure to use the new fee amounts or else your application could be rejected by the FCC. 

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Time for Annual Regulatory Fees Again

It’s that time of year again.  September is the time of year that Commission licensees, including radio and television broadcasters, get to pay the federal government for the privilege of being a regulated industry. The FY 2006 Annual Regulatory Fees are due to the FCC by September 19, 2006. Payment may be made by check or credit card, and can be submitted either in paper or electronically.  Payments not made by 11:59 PM on September 19th will face the addition of a 25% late fee. 

The Commission has a helpful web page, which includes instructions for submitting the regulatory fees and a “look-up” database to allow stations to confirm the amount owed for their stations.  The site also contains a Frequently Asked Questions section, and links to the database where you can submit the fees electronically. In addition, for those needing more detail, the Commission’s full Order detailing the fees for all types of licensees is available here.       

Licensees are warned to submit their fees on time and make sure the payments are accurate. And be sure to keep a copy of all correspondence or electronic confirmations.  Historically, the FCC’s recordkeeping regarding regulatory fees has not the best, and the process seems to be conducted by a third-party contractor, further complicating issues. In addition, failure to timely submit the proper regulatory fee can block the processing of future applications. Accordingly, it is better in the long-run to take some extra time to make sure these fees are paid properly, then to try and deal with the headache later. 

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FCC Announces Regulatory Fees For 2006

Today, the FCC released an Order announcing the rules for the regulatory fees that will be due in September.  The exact dates for filing will be announced in a subsequent public notice.  But today's Order sets out the amount of the fees that will be due for broadcasters and other services.

For AM stations, these fees will range from $400 to $7375, depending on the Class of Station and the population that the FCC estimates that the station serves.  For FM stations, the rates range from $575 to $9750.  UHF Television stations will owe between $1775 to $20,750, while VHF stations will pay between $3400 and $64,775.  Satellite television stations, which simply rebroadcast the signals of other stations, need pay only $1150.

All fees are based on the status of the station as of October 1, 2005.  So stations which have upgraded in the interim, or have gone from a construction permit to a licensed station after that date, will not have to pay for their new facilities until next year.  However, even if there has been a change in ownership since October 1, 2005, the current licensee is responsible for the fee.

 

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