It's Official: Online Posting of TV Public File Required Beginning August 2nd; FCC Schedules More Demos of System

On Friday, the US Court of Appeals for the DC Circuit followed the FCC's lead in denying the NAB's request for stay of the requirement for TV stations to post their public inspection files online.  Accordingly, that rule goes into effect on Thursday, August 2, 2012.

Effective that date, TV stations should post all new public file documents online in the FCC database created for this purpose.  Stations will have six months in which to post pre-existing public file documents into that database. The online posting requirement applies to TV stations only...not to radio stations or cable systems.

Posting of the political public file will not be required until July 1, 2014, except for the top four network affiliated stations (ABC, NBC, CBS, Fox) in the top 50 markets.  No station will be required to post political file documents created prior to August 2, 2012.

To facilitate the process, the FCC is holding online/teleconference seminars on Monday, July 30th and Tuesday, July 31st.  The Monday seminar will be held from 9-11 AM EDT while the Tuesday seminar will be held from 4-6 pm EDT.  Details of how to join the online seminars are available at the FCC website here.

 

 

On the Schedule for the April 27 FCC Meeting: Television Public Interest Obligations, TV Channel Sharing and Third-Party Fundraising by Noncommercial Broadcasters

Three broadcast items are tentatively scheduled for the next FCC meeting, to be held on April 27, according to the tentative agenda released today.  In one expected action, though perhaps moving more quickly than many thought possible, the FCC has indicated that it will adopt an Order in its proceeding requiring TV broadcasters to place and maintain their public files on the Internet.  A second broadcast item will adopt rules for channel sharing by TV broadcasters as part of the plan for incentive auctions to entice TV broadcasters to give up some of their spectrum for wireless broadband use.  Finally, the FCC proposes to adopt a NPRM on whether to amend current policies so as to permit noncommercial broadcasters from interrupting their regular programming to raise funds for organizations other than the station itself.

The first item is to determine whether to require that the broadcasters maintain an Online Public Inspection File, is a controversial issue about which we wrote last week. The proposal for the online file grew out of the FCC's Future of Media Report (renamed the Report on the Information Needs of Communities when it was released last year, see our summary here).  In that same report, it was suggested that the FCC relax rules applicable to noncommercial broadcasters that limit their on-air fundraising for third-parties, if that fundraising interrupts the normal course of programming.  The Future of Media Report suggests that this restriction be relaxed so that noncommercial broadcasters be able to do block programming from time to time to raise funds for other noncommercial entities

In recent years, the FCC has issued blanket waivers to allow noncommercial stations to raise funds for relief groups bringing aid to areas where mass disasters have hit (see our articles on waivers granted for  for Haitian earthquake relief, here, and  for Japan earthquake and tsunami relief, here).  It may be that the NPRM will address these types of situations.  But, as controversies have arisen in other situations where noncommercial broadcasters enter into business relationships to preserve and expand their service (see our articlehere on some of the issues raised by the FCC in a case involving the sale of a noncommercial licensee and the objections to a pre-sale operating agreement or LMA), this proceeding may well address these more extensive issues.

The TV channel sharing item grow out of the FCC's proposals that hope to recapture some more of the television spectrum to repurpose it for wireless broadband.  Congress recently passed legislation (which we summarized here) to allow incentive auctions to try to entice certain TV broadcasters to give back their spectrum for re-auction by the FCC.  Given that digital television technology allows for one television channel to now transmit several programming streams, the FCC had suggested that one option for broadcasters was for two TV stations to get together, agree to turn one channel back in to the FCC for wireless use while putting both of their programming onto different streams on the second station, splitting auction proceeds,and perhaps even retaining must-carry rights for both streams. See our summary of the FCC's proposals for channel sharing, issued just over a year ago.

Such a channel-sharing program will be but a first step in the long process of clearing some spectrum for wireless broadband. Even if the FCC adopts rules for channel sharing, it must still adopt rules for the spectrum auctions (both the incentive auctions by which TV stations offer to give up their spectrum in exchange for payment) and for the actual bidding on the cleared spectrum by wireless users.  In addition, the FCC will likely want to repack the TV band, moving stations that don't elect to give up their channels to a smaller part of the TV band, to clear the same TV channels so as to provide a consistent spectrum band across the country for wireless use.  That plan, akin to the channel changes that took place when DTV was implemented, is no doubt a much longer, more complex process.  So this is but the first small step toward the FCC trying to implement their plans for wireless broadband operations on what are now TV channels. 

In any event, this may be a very important meeting for broadcasters.  This NPRM on the new public file requirements is also connected to the FCC's proposal to create a disclosure form for public interest programming, which may be addressed next.  Together, these issues may make April a very busy and important month for broadcasters.   

[Corrected 4/9/12, 4 PM to reflect that the FCC meeting will discuss the online public file, not the form for reporting on the public service of broadcasters, as originally indicated] 

FCC and Public Interest Groups Demand Copies of TV Stations' Public Inspection Files, As FCC Nears Decision About Requiring That The Complete File Be Posted Online

While rumors are flying that the FCC is rushing to adopt its proposals to require that TV stations put their public inspection files online (see our summary of the proposals here), both the FCC and public interest groups are targeting the public files of television stations - looking to copy some or all of those files.  Rumors are that the FCC inspected the public files of all television stations in at least one city - and asked for copies of the complete files to be produced at the FCC within a day or two, in some cases requiring the copying of several file cabinets worth of material very quickly.  Whether this inspection is a one-shot deal or the start of a program to audit the files of TV stations across the country is unclear.  At the same time, public interest groups have been urging their members to inspect TV station public files across the nation, to copy parts of those files, and to post the information that they collect online.  TV stations across the country need to be prepared for these inspections.

Why these actions now?  Some may think that the FCC is just conducting a random audit, while others may suggest that the demand for complete public files is just a fact-finding mission as part of its rulemaking process.  The more suspicious of broadcasters may think that this represents the FCC sending a message that the online public file is coming, and stations may find it easier to accept the online file rather than facing these demands for the instant reproduction of their entire files to be inspected at leisure in Washington. 

The most controversial part of the FCC's proposal has become the issue of putting the political file online - and that is also the part of the file that seems to be the principal target of the public interest groups.  In a story run in January on public radio's On the Media, Steve Waldman, who was in charge of the FCC Future of Media Report (which we summarized here when it was released as the report on The Information Needs of Communities), suggests that broadcasters' opposition - that there is too much information that comes in too fast during political season to be put online without substantial inconvenience and expense - somehow shows that broadcasters are not making the best use of technology, implying that the online public file should be viewed as a way of streamlining the stations' recordkeeping. Listen to that interview here.

But this completely misses the mark.  Few, if any, TV stations don't already use computerized sales and logging (i.e. scheduling) systems to manage their advertising sales and its insertions into broadcast programming.  TV stations are hardly the technological backwaters suggested in the interview.  The issue is not computerizing the station's business records.  Instead, the real issue is computerizing the records and making them available to the public in a format that the FCC dictates - a format that has not even been developed and will certainly not be the same format in which stations keep their internal records. 

The FCC several years ago asked for the online reporting on station ownership in a form redesigned by the FCC supposedly to allow it to be searchable by the public.  That public search function still has not been available well over two and a half years after the form first went online, and most stations find the system to be very user-unfriendly and time-consuming to prepare.  And Ownership Reports are filed only once every two years.  For reports that need to be updated daily - even hourly at the height of political season - it is simply unreasonable assume that there will not be a substantial burden on broadcasters to convert their information to an FCC-mandated format to report on the dozens of political buyers who are buying and running ads on a daily basis on many television stations in the weeks leading up to any election. 

While there have been some rumors that the FCC is thinking about backing off of the demand for a searchable database in which to upload these forms, even scanning and uploading the forms onto an FCC database of some description will require a whole new burden on broadcasters (see our article here about the FCC's obligation to evaluate that burden). 

Just what is the justification for this burden?  It does not seem to be one that is rooted in Communications laws, or in fact to have anything to do with the operations of television stations. Instead, public interest groups seem to be saying that the public has a right to know how much is being spent on broadcast advertising by candidates and third-party groups - right down to the amount that is spent by particular candidates on particular stations for a particular flight of advertising spots - and that these facts should be available nationwide. So, rather than focusing on facts that reveal how a broadcaster is serving its community, as most FCC regulations do, the justification for the online political file is one of looking at information about candidate and PAC spending in Federal races.  Is this a justification for imposing burdens on broadcasters?  Shouldn't these burdens instead be put on the candidates that these groups seem to want to regulate - the candidates and PACs?

While much of the focus on the effort to force broadcasters to put their public file online has been focused on the political file, that is not the only issue that could cause concern.  As we wrote when we summarized the proposal advanced by the FCC in its notice of proposed rulemaking, we are also concerned about the brand new requirement for broadcasters to post information about sponsorship identification in their online file.  The proposal for this information was not really spelled out in detail in the NPRM, and it is not information that is currently required in the public file (with the limited exception of sponsorship information for issue advertising).  What will this new obligation entail?

We may not have long to wait to find out.  Rumors had been that the FCC was trying to get the item ready for the March open meeting - a deadline that was obviously missed.  Now the target seems to be April.  So, as broadcasters head to Las Vegas for their annual convention in the middle of the month, they may well be facing new obligations so that the public can learn how much candidates are spending on their stations. 

Extensions of Time for Comments in FCC Proceedings on New Form to Document TV Public Interest Obigations and Online Public File

The FCC has extended the comment deadline in two proceedings looking at imposing new public interest obligations on TV broadcasters (and potentially, at some point in the future, on radio stations as well).  Both proceedings are an outgrowth of the FCC's Future of Media Report, that suggested that broadcasters be made to be more responsive to their communities through better documentation of how they are meeting their public interest obligations.  We mentioned in our post on January FCC deadlines last week, that the reply comment deadline on the Notice of Proposed Rulemaking on the online public inspection file, which was originally scheduled for last week, has been extended until January 17.  In addition, the initial comments on the Notice of Inquiry on the development of a form on which broadcasters would report on their public interest programming (to replace the Form 355 that was adopted but never implemented) were due on January 17, but the due date for those comment has been extended until January 27, with replies now due on February 9.  We summarized the issues raised by the online public file notice of proposed rulemaking here, and those set out in the Notice of Inquiry on the new form to document the public interest service of TV broadcasters here.  File comments as to how these proposals would affect your operations, and watch to see what action the FCC takes later this year in these very important proceedings. 

FCC Deadlines in January - Quarterly Issues Programs Lists, Children's Program Reports, Comments on TV Online Public File and Public Interest Obligation Proposals, FM Window and More

In addition to the normal FCC deadlines for routine filings, January brings the deadline for comments in a number of FCC proceedings, and a filing window for new FM applications.  For TV stations, the Commission recently extended to January 17 the Reply Comment deadline on its proposals (summarized here) for an online public inspection file.  Many public interest groups have supported the FCC's proposals to put the public file online, including the political file and new information concerning sponsorship identification information, while broadcasters have expressed concerns about the burden and practicality of an online file with all the information that the FCC is considering.  Comments are also due on January 17 on the related Notice of Inquiry looking into the adoption of a new form to document the public interest programming of TV broadcasters to replace the never-effective Form 355.  Comments deadlines on Petitions for Reconsideration of two other rulemaking decisions - on the adoption of rules allowing AM stations to use FM translators, and the Rural Radio proceeding - are due on January 4 with replies on January 17.  That the FCC only now sought comments on the 3 year old Reconsideration petitions in the AM translator proceeding is unusual, as the issue raised by the reconsideration petitions has also been incorporated in the recent FCC proceeding looking at the relationship between FM translators and LPFM opportunities.

We just reminded broadcasters of the new FM window, where applications for 119 new FM channels can now be filed between now and the January 12 deadline.  Broadcasters also need to remember to complete their Quarterly Issues Programs lists, and place them in their public file, by January 10.  As we've written, there are big fines for stations who forget to complete these reports and have to report their absence at license renewal time.  See our advisory on the Quarterly Issues Programs Lists, here, and also our advisory on Children's Television obligations, including Form 398, that needs to be filed at the FCC by January 10, along with a public file report documenting compliance with the limitations on commercial advertising in children's programming . 

For more information on many of the routine regulatory deadlines for broadcasters, see our Broadcasters Calendar for 2012 here.

January 17 Comment Deadline Set for Proposed New FCC Form to Document the Public Interest Service of TV Broadcasters

The FCC's proposal to replace the never-implemented Form 355 with a new form to document the public interest programming of television broadcasters (to eventually be expanded to include radio operators) was published in today's Federal Register - setting January 17 as the comment date for those interested in telling the FCC what they think of the proposed new form.  We summarized the FCC's proposals for the content of the new form in our article here.  This form would also replace quarterly issues programs lists as the way that broadcasters demonstrate how they serve the public interest, and would be included in the new online public inspection file if the proposal for such a file is adopted by the FCC (comments on that proposal are due next week, on December 22, see our notice here). 

The new form documenting the public interest programming of TV stations is proposed to include information on the following types of programs, based on a "composite week" of data - the dates for which may be selected after the fact, potentially requiring the taping of programs so that broadcasters can reach back to get the required data:

  • Local news
  • Local Civic/Government Affairs ("interviews with or statements by elected or appointed officials and relevant policy experts on issues of importance to the community, government meetings, legislative sessions, conferences featuring elected officials, and substantive discussions of civic issues of interest to local communities or groups")
  • Local Electoral Affairs
  • Closed Captioning and Video Description (i.e. how much video description is being done by a station, and what exceptions to closed captioning are being claimed for programming broadcast on the station)
  • Emergency accessibility complaints (complaints filed against a station for not making emergency programming accessible to those with disabilities)

For more concerns about some of the proposals, review our more detailed summary of the proposal, and file comments by January 17, or replies by January 30, in this important proceeding. 

What the NY Times Article on the Broadcast Public Inspection File Says About the FCC's Public File Requirements

While the FCC is entertaining comments on its proposal to move the public inspection file for broadcast television stations online (see our article here), the existing physical public files of several New York area broadcasters came under examination by the New York Times, according to an article in Sunday’s paper. The article seemed to both make fun of the contents of the required public file, while at the same time noting that the people at several stations contacted by the reporter seemed to be unaware of the Commission’s requirements that the file be made available immediately to anyone who visits a station and asks to see it, and that requiring appointments is not an option. We've written in the past about stations that received substantial fines for requiring a visitor to make an appointment to see a station’s files (see, one case where a commercial TV station was fined $10,000, and another where a noncommercial FM was fined $8000 for a similar violation).  If the NY Times article is accurate, stations need to reexamine their policies and be sure that those dealing with the public know of the location of the file and the fact that it must be made available upon request – no questions asked. For more information about the public file requirements, see our Guide to the Basics of the Public Inspection File for Commercial Stationshere.

The second aspect of the report, poking some fun at some of the weird comments from the public found in the file, reinforces some of what I have been told by broadcasters. At a broadcaster meeting last week, I was told stories of station public files that have expanded exponentially since the FCC added a requirement that the file contain emails from the public, as well as letters. Broadcasters report that the letters from the public can now often take up several drawers of a file cabinet, while the remainder of the file fits in a single drawer. While the Commission has tentatively concluded that these letters would not be required to be included in the electronic online file, the recent rulemaking proposal did suggest that the letters be retained at the station, and that perhaps summaries of the written comments be made part of the online file. In addition, comments were requested as to whether social media posts about station operations be kept in some fashion – even though sites like Facebook and Twitter, by their very nature, keep most of what it posted on their sites for the public to view (see our summary of the proposals here). Broadcasters at my meeting last week were very concerned about the volume of paper that would generate, and the need for manpower to review Twitter feeds and Facebook posts almost around the clock to see if any needed to be placed into the file as they related to the station operations.

The fact that many major-market stations were unprepared for a request to view the public file seems, at first glance, incredible to those of us who deal with legal issues all the time. But what it instead may show is the utter lack of public interest in the contents of those files. Around the country, broadcasters tell me that their files are never visited – except for the political file at bigger stations in major markets. If a file is never visited, procedures may become lax or unfamiliar through lack of practice by the staff in dealing with requests. Broadcasters need to let the FCC know what they think about the proposal for an online file and the various new additions to that file proposed by the Commission, by the December 22 deadline. No doubt the Times story will figure in someone’s filing, so be sure to have your voice heard on these proposals by that deadline.

December 22 Comment Deadline Set for FCC Proposal for Online Public Inspection File for TV - What is the Regulatory Burden?

The FCC has set the date for comments on the proposal for television stations to maintain an online public inspection file, including an online political file (see Federal Register notice here).  Comments are due on December 22.  Replies are due on January 6.  Happy Holidays from the FCC!  We summarized the FCC's proposals here and here.  While the proposed new rules will relieve stations from the burden of hosting the files themselves (as the FCC is proposing to host all of the files on its own servers), it still requires that stations upload their information - including all information that is put in their political file, into a new electronic reporting system to be devised by the FCC.  As we described in detail in our summary of the proposal for the online public file, the FCC is asking whether certain new public file obligations should be added to those currently in place.  These include possible posting of comments on programming that come from the station's social media efforts in addition to the letters and emails currently required; a proposed requirement to place in the public file information about sponsorship identification of all "pay for play" material that is broadcast on a station (currently only broadcast, not kept in any paper form); a requirement to provide information about shared services agreements and the programming that they provide to a station; and a requirement that all information about fines and other enforcement actions taken against a station be posted to the online file.  So how much does the FCC think that this will cost stations?

As we wrote yesterday, in adopting rules, the FCC is currently bound by the Paperwork Reduction and the Regulatory Flexibility Acts, both of which require some assessment of the impact of new regulations, particularly on small businesses.  In the Federal Register publication, the FCC's assessment of the regulatory burden of these proposed new obligations is broken down into several pieces.  The burden for the new online public file requirement, including the posting of the political file, is set forth as follows:

Respondents/Affected Parties: Business or other for-profit entities; Not for-profit institutions; Individuals or households

Number of Respondents and Responses: 25,422 respondents; 59,833 responses

Estimated Time per Response: 1 to 104 hours.

Frequency of Response: On occasion reporting requirement; Recordkeeping requirement; Third party disclosure requirement

 Obligation To Respond: Required to obtain or retain benefits. The statutory authority for this collection of information is contained in 47 U.S.C 151, 152, 154(i), 303, 307 and 308

Total Annual Burden: 2,158,909 hours

 Total Annual Costs: $801,150.00

Stations should look at and evaluate these numbers as part of their response, as the FCC has invited a cost-benefit analysis of the proposed new rules.  How is it that the FCC assumes that the regulatory burden would be over 2 million hours, but that the costs would be less than a million dollars?  How will this work be done and paid for?  It is also interested in that the number of respondents is listed as 25,422.  As there are only 1,782 full-power television stations and about 450 Class A stations according to the last FCC Report on station totals, who else is expected to report on this form?  The FCC, in its Notice of Proposed Rulemaking, specifically exempted radio from the obligations for an online public file - at least for the time being.

A separate assessment is made of the need to collect information to meet the new sponsorship identification.  The FCC expects 22,761 respondents and 1,831,610 responses, but expects each response to take only .0011 to .2011 hours (about a minute to 12 minutes).  This leads to an estimate of a total annual burden of 242,633 hours at a cost of $33,828.  Again, do these estimate seem realistic?  When has anyone even been able to log onto an FCC database and submit required information in one minute - much less to gather information about the sponsorships that may be included in each program that is broadcast and to get it organized for submission to the FCC's online public file system.

The comment date is not yet set for the related proceeding for a new FCC Form to replace the never-implemented Form 355.  As we wrote last week, this new form will require that television broadcasters (for now, with radio to be included at some later date) document very specific facets of their public interest service - for inclusion in the new online public file.  Watch for comment deadlines on the proposal for this new form shortly. And, perhaps while you are preparing for the holidays and preparing your comments, you can ask Santa for some help at your stations to upload your information to this new online public file, as it may be only by borrowing Santa's helpers that you'll be able to meet the burdens that the FCC imposes at the costs that it projects. 

Text of Online Public File Order Released - Details of What the FCC is Considering, and Suggestion that Radio May Be Next

The full text of the FCC's Order overturning its 2007 decision on online public inspection files for TV broadcasters and the adoption of the Form 355 "enhanced disclosure form" has now been released.  This order, adopted at the FCC's open meeting this week (held on October 27, 2011, which we wrote about here), also contains a Further Notice of Proposed Rulemaking again suggesting an online public file, but this time it would be one hosted by the FCC.  In reading the full text, more details of the FCC's proposal become clear.  As set forth below, the Order suggests everything from a future application of these rules to radio once the bugs have been worked out, to an examination of whether a station needs to save Facebook posts and other social media comments in the same way that it preserves letters from the public and emails about station operations, to a proposal for stations to document in their files information about all "pay for play" sponsorships.  Comments on these proposals, and the others summarized below, which include a request for detailed information about the costs of compliance with the proposals, are due 30 days from when the order is published in the Federal Register, with Reply Comments due only 15 days thereafter.  The FCC, after sitting on these obligations for almost 5 years, now seems to be ready to move quickly. 

In reaching it's decision, the order first discusses some proposals that it was rejecting - some for the time being.  For radio broadcasters, the most important of the rejected thoughts was the extension of this rule to radio.  The Commission noted that there were proposals pending and ripe for action as part of the Localism proceeding (which we summarized here), to extend the online public file obligations to radio.  In this week's order, the FCC decided that it was not yet ready to apply these rules to radio.  The Commission noted that there might need to be differences in the rules for radio (implying that, at least partially, there might be resource issues making it difficult for radio broadcasters to comply with these rules), and also finding that it would be better to see how an online file works for TV before extending the rule to radio.  But, from the statements made in the Order, there is no question but that, at some point in the future, some form of the obligations that are proposed for TV will also be proposed for radio broadcasters. 

Also, it is important to note that the FCC's Localism proceeding is not dead yet.  While this week's Order stems from the FCC's Future of Media Report (renamed the Report on the Information Needs of Communities), and that report recommended that the Localism proceeding be terminated, this Order did not do that.  The Commission notes its plans to start a new proceeding designed to force broadcasters to complete a more comprehensive report on their public interest programming.  That proceeding may be where the looming Localism proposals are finally dealt with.  Statements at the meeting and passages in the Order make clear that the examination of the public interest obligations for broadcasters will begin with a Notice of Inquiry, which is a most preliminary stage of an FCC proceeding (which would be followed by a Notice of Proposed Rulemaking after the inquiry comments are reviewed) and then an Order.  So final resolution of these issues seem to be far down the road.  If that is the case, will the Localism proposals stay on the table until the Order in this new proceeding is adopted?  It is certainly unclear from the Commission's statements thus far.

Other proposals rejected by the FCC include one asking that access to the file be limited to local residents of a station's service area.  The reason for the rejection of this proposal seems to be based on the proposed adoption of the online file (that there would be no more burden on the station to make it available to all once it is online; that local residents could access the file when traveling; and that restricting the file to locals would create more, not less work) rather than on any philosophical reason that the file should be available to everyone.   There also seems to be no discussion whatsoever about the possibility of abolishing the public file, as some broadcasters suggested when the rule was up for review as part of the normal review of FCC rules under provisions of the Paperwork Reduction Act.

Another suggestion that the Commission considered and rejected was one that asked whether any new proposal should be phased in - with only new information placed online, and old information retained in paper form.  The FCC tentatively rejects that approach, finding that it would be too burdensome for the public to be forced to look in two places for information about station operations.  The Commission also suggests that the burden to move those portions of the public file not already online to an electronic form should not be too great.

Other specifics of the FCC's proposal include the following:

  • While the FCC proposes to store the online file on its servers, and to use its site and bandwidth to make the information available to the public, the Commission also proposes that broadcasters keep an electronic back-up file in case there should be issues with the FCC's servers or other systems.
  • The political file is proposed to be moved online. The Commission asks about the burden that would impose, as materials are supposed to be placed in the file "immediately" in most circumstances.  The Commission suggests that this should not be a burden as most political orders are taken electronically.  But it does not explain the connection with that fact and the ease of an electronic file.  In most cases, there is more to maintaining a file then simply placing an order into that file, and there is no indication that orders are in the same electronic format as will be the FCC's online file.  The FCC asks if it should provide forms that would make that process easier (though one wonders whether the FCC could come up with forms that are equally usable by all stations that each may have unique selling practices).  The Commission itself acknowledges that there is more to the issue, as it asks how an online political file can be organized so as to make it useful.  Should it be broken down by election, or in some other way?
  • While, for privacy reasons, the FCC suggests that letters and emails from the public not be displayed on the online file, it asks a number of other questions about letters from the public:
    • Should all such correspondence continue to be maintained in a physical file, open for inspection, at the station?
    • Should broadcasters be required to report online about the number of letters received from the public, or to summarize their contents in the online file?
    • Are there other ways of making such documents available?
    • Should Facebook posts and other social media communications be made available to the public in some organized fashion as part of the public file obligation?
  • Are contour maps generated by the FCC's own website sufficient for the online public file?
  • The Public and Broadcasting Handbook is proposed to be eliminated from the public file obligation, as that handbook would simply be available on the FCC's website where all the files are stored
  • The FCC proposes to maintain the obligation for TV stations to complete quarterly programs issues lists until any new form, more completely disclosing information about a broadcaster's public interest programming, is adopted.
  • The FCC asks if, in the online file, it should post all orders dealing with sanctions imposed on a station for any rule violations, including forfeiture orders (i.e. fines), notices of violation, notices of apparent liability and other citations for violations.  Even though some of these documents are only preliminary findings of violations, which can be rebutted by a licensee, the FCC tentatively concludes that these documents would be important to the public to assess the performance of a broadcaster.
  • The FCC proposes some new obligations for the public file, including:
    • An obligation to list the address and telephone number of the main studio and, for those stations operating pursuant to a studio waiver, a toll free phone number and the location of the local public file (one wonders, though, if the file is electronic, will there be any such location for the local file?)
    • An obligation to disclose in the online public file all information about "pay for play" sponsorship identifications.  The FCC notes that all that information is now required to be broadcast, but there is no way for the public to review that information after the program with which it is associated is aired.  The FCC notes that such information should already be in the file for sponsored political and controversial issue oriented program, but suggests that the public and "watchdog groups" should have a permanent, searchable database in which all such sponsorships are revealed.  The Commission notes that such on-air disclosures are, but their nature "fleeting", and that the public should be able to know who is trying to persuade them to buy something.  The FCC does not discuss how such disclosures would be made with respect to network or syndicated programming (e.g. if a network game show concludes with the tag "promotional considerations furnished by Hilton Hotels", how is the station supposed to find that information for inclusion in its file?  What if the promotional consideration was received by the producers of a movie aired by the station?  These questions were asked in the FCC's open proceeding on sponsorship identification and embedded advertising, but these difficult issues are ignored here).
    • Information about shared services agreements, including agreements where stations provide administrative support or news programming to another station, are proposed for posting on the new online file.  These agreements seem to be a particular target of public interest groups, and were characterized by Commissioner Copps as an "end run around our media ownership rules" (see our prior coverage, here). 
  • Practical questions about the format in which such documents should be stored are asked.  The FCC is looking for a searchable format that will allow documents to be uploaded to the FCC site in the least burdensome manner possible.
  • The FCC asks what notice of the existence of the online file should be required.  The Commission had, in 2007, suggested a twice a day announcement on the air about the file's electronic location, but now asks if a few announcements per week would be sufficient.  Should specific dayparts be mandated, the Order asks.
  • The FCC also proposes that the URL of the Public File be on the homepage of the station's website, where is can be easily found by members of the public.
  • The FCC proposes to eliminate the obligation on broadcasters to make the electronic file accessible to those with disabilities, as the FCC suggests that the database in which the files will be stored will be designed to be accessible, so that the burden would be on the FCC, not the individual broadcasters.

Obviously, there are many concerns for broadcasters, who already chafe at the burdens of maintaining a public file which is rarely if ever visited by the public.  New obligations to take that information, and perhaps compile more, and put it online, adds a new layer of worry to many TV broadcasters, especially smaller ones.  The FCC seems cognizant of that possibility, and asks for a full Cost/Benefit Analysis of the proposed rule.  The FCC wants broadcasters to determine the costs of complying with the various proposed obligations, and those in the public interest community to determine what the value of the benefits would be.  The FCC recognizes that the value of the benefits might be difficult to assess, so the Commission asks how the benefits to the public can be maximized while the burdens on the broadcaster are minimized.

There will no doubt be much more debate on these topics in the weeks to come.  But the FCC seems to be in a rush to get this proceeding done, as many public interest groups and Commissioner Copps have complained about the lack of action on the 2007 rules and the localism proposals.  So start preparing your comments now for filing once the FCC announces the dates for submission of comments.  We will certainly have more coverage of this important issue for broadcasters on these pages in coming weeks and months. 

 

 

FCC Proposes Revised Rules for Online Public File - Including Political File - and Discusses the Public Interest Obligations of TV Stations

At its meeting today, the FCC vacated its 2007 Order mandating an online public file and the filing of the Form 355 “Enhanced Disclosure” form that detailed the public interest service of television broadcasters. But these requirements are not gone, as the Commission has adopted a Further Notice of Proposed Rulemaking asking to reinstate an obligation for an online public file, and a Notice of Inquiry is apparently circulating at the FCC that would propose a substitute for the Form 355. The proposal for the new online public file apparently also suggests including new information in the online file, including information about sponsorship identification and copies of shared service agreements. While the text of the FCC order is not yet out, from the information provided at the FCC meeting, the following matters appear to be on the table at the FCC:

  • The FCC proposes that TV broadcasters will need to have an online public file, submitted to and maintained on servers at the FCC rather than on each individual station's website
    • Several Commissioners suggest that the Commission will develop a mechanism for accessible storage of online public files, which may be searchable by the public
    • The online public file form will automatically import other FCC filings that are required to be in the file
    • Until the FCC electronic database is perfected, the documents will be placed online in their current formats
  • Letters from the public concerning station operations are proposed to be excluded from the online file out of privacy concerns, though broadcasters will still need to keep those letters in a public file at the station.
  • The online public file is proposed to include the political file, which was exempt under the 2007 rule as it would be too burdensome to update that report rapidly during an election season
  • The online file is proposed to include additional material not now required to be in the public file, including:
    • Copies of shared services agreements
    • Sponsorship identification information that is now only broadcast on air in connection with the program in which sponsored material is included
  • The FCC is currently considering a Notice of Inquiry, a draft of which is apparently circulating among the Commissioners now, that proposes some form of enhanced disclosure form that will replace the Form 355 (and the current Quarterly Programs Issues list) to document the public service provided by TV broadcasters

Reactions of the Commissioners varied.  Commissioner Copps urged the FCC to not only require the compilation and accessibility of information about the public service provided by broadcasters, but also standards that would allow the public to complain if they did not believe that a station adequately served the needs of the local community.  Commissioner McDowell (who voted against the adoption of the Form 355) said that he feared that the FCC was again moving down the road toward burdensome regulation, and might even be facing constitutional issues about some of its proposals.  Commissioner Clyburn claimed that the public files of many broadcasters were in the deep recesses of broadcast stations, in dilapidated filing cabinets, and the materials in the files were prepared in small fonts – and visits to these files was time consuming and burdensome for those wanting to review this material.  Chairman Genachowski principally talked about the efficiencies of electronic documents, cataloging the many ways that the FCC has provided information online, including moving many other FCC obligations to online filings. 

This is obviously a very important issue for broadcasters, as the potential for new burdensome regulations clearly exists. We wrote about many of the problems with the Form 355 (see, e.g. our article here), and the new file may well impose similar burdens (especially in connection with the obligation to document sponsorship identification material, and at election time with respect to the political file). Moreover, while these proposals are for TV broadcasters only, one can expect that, if they are adopted, there will be proposals to extend them to radio at some point in the future. We will have more about this proposal once the text of the item is released, and will add links to this article once the statements of the Commissioners the FCC public notice are available.

Update - 10/27/2012, 1:15 PM - The Public Notice of the FCC action, which is not very informative, is available here

TV Public Interest Obligations and Online Public Inspection File on Agenda for Next FCC Meeting

Online public files, detailed reports about virtually every program aired on a television station as to its source and whether it addressed various types of perceived community interests, and other paperwork requirements that would have required most television stations to hire a new employee just to deal with the burden, were all part of mandatory television public interest reporting requirements adopted by the FCC back in 2007 (see our articles here and here on these reports on FCC Form 355).  Similar obligations were also proposed for radio but never adopted.  The TV "enhanced disclosure" rules have never been implemented, however, and were apparently never even submitted to the Office of Management and Budget  for approval of their compliance with the Paperwork Reduction Act.  The numerous petitions for reconsideration filed against these rules are on the tentative agenda for the next FCC meeting, to be held on October 27.  Not only is the disposition of these petitions on the agenda, but a proposal for a further proceeding to look at new requirements for an online public file, to be hosted by the FCC, is to be considered at the same time.  What can broadcasters expect to happen?

In the Future of Media Report issued by the Commission earlier this year (actually renamed the Report on the Information Needs of Communities), the FCC study group recommended abolishing these 2007 rules, and terminating the proceeding looking at imposing them on radio (see our summary here).  The Report seemed to recognize that the reports were far too burdensome on licensees, and were not reasonably related to the current FCC rules on programming.  In essence, the reports required the collection of lots of information, without any regulatory purpose for the information collected.  In light of these findings, and the 4 year delay in implementing the rules already adopted, it seems safe to conclude that the 2007 rules are probably on their way out.  But the accompanying notice suggesting that the FCC will begin a new rulemaking to look at the online public inspection files, to be hosted by the FCC, raises questions about what will replace the 2007 rules.

The Future of Media Report also suggested that the FCC and the public had no current way to determine whether broadcasters were serving the public interest, and no objective standards by which such service would be judged.  The Report did not suggest any concrete actions in this regard, other than to require more online disclosure of the public interest programming of broadcasters - though in a form more easily accomplished than that required by the 2007 rules.  The findings of the FCC's study were seized on by some of the media watchdogs and "public interest" groups active in broadcast matters, to argue for more reporting by broadcasters.  In recent weeks, including at the recent FCC public hearing held in Arizona to discuss the findings of the Future of Media Report, there have been suggestions that the FCC was sensing "renewed interest" in the questions of the public interest standards that should be applicable to broadcasters.  This new proceeding looks to reimpose some sort of online public file requirement.  From the brief description in the FCC's notice about the upcoming meeting, it seems that the FCC is proposing that every station's public file would be hosted by the FCC (which would presumably mean filing all public file documents with the FCC).  This may be the first step in attempts to better define the public interest requirements of broadcasters. 

This will be an important meeting for broadcasters (one of the few FCC meetings discussing broadcast issues in the last year).  And, as any TV rules may well shape future obligations for radio operators, all broadcasters need to be paying attention to the decisions reached and the suggestions made in the Further Notice of Proposed Rulemaking.  So pay careful attention to the results of this upcoming meeting. 

Recommendations from the Future of Media Report: End Localism Proceeding, Require More Online Public File Disclosures of Programming Information, Abolish Fairness Doctrine

The FCC today heard from its Future of Media task force, when its head, Steven Waldman presented a summary of its contents at its monthly meeting.  At the same time, the task force issued its 475 page report - which spends most of its time talking about the history of media and the current media landscape, and only a handful of pages presenting specific recommendations for FCC action.  The task force initially had a very broad mandate, to examine the media and how it was serving local informational needs of citizens, and to recommend actions not only for the FCC, but also for other agencies who might have jurisdiction over various media entities that the FCC does not regulate.  Those suggestions, too, were few in the report as finally issued.  What were the big headlines for broadcasters?  The report suggests that the last remnants of the Fairness Doctrine be repealed, and that the FCC's localism proceeding be terminated - though some form of enhanced disclosure form be adopted for broadcasters to report about their treatment of local issues of public importance, and that this information, and the rest of a broadcaster's public file, be kept online so that it would be more easily accessible to the public and to researchers.  Online disclosures were also suggested for sponsorship information, particularly with respect to paid content included in news and informational programming.  And proposals for expansion of LPFMs and for allowing noncommercial stations to raise funds for other nonprofit entities were also included in the report. 

While we have not yet closely read the entire 475 page report, which was tiled The Information Needs of Communities: The Changing Media Landscape in a Broadband Age, we can provide some information about some of the FCC's recommendations, and some observations about the recommendations, the process, and the reactions that it received.  One of the most important things to remember is that this was simply a study.   As Commissioner McDowell observed at the FCC meeting, it is not an FCC action, and it is not even a formal proposal for FCC action.  Instead, the report is simply a set of recommendations that this particular group of FCC employees and consultants came up with.  Before any real regulatory requirements can come out of this, in most cases, the FCC must first adopt a Notice of Proposed Rulemaking, or a series of such notices, and ask for public comment on these proposals.  That may take some time, if there is action on these suggestions at all.   There are some proposals, however, such as the suggestion that certain LPFM rules be adopted in the FCC's review of the Local Community Radio Act so as to find availability for LPFM stations in urban areas, that could be handled as part of some proceedings that are already underway.

A second observation is that all of the conclusions reached in this study are not necessarily objective proposals, made in a vacuum.  Instead, they reflect the perceptions and possible prejudices and political objectives of its authors and editors.  There have been trade press reports that the report was subject to a lengthy editing process in the Chairman's office.  Thus, there are conclusions that one might expect given positions that have been taken publicly by the various players at the FCC.  For instance, there is a ringing endorsement of the importance of broadband. With the emphasis that the report puts on disclosure of community service programming and other matters by broadcasters needing to be done online, one can almost sense that the FCC feels that for something to be "real" or "meaningful", it must be done online.

The conclusions about LPFM seem similarly to be drawn from inherent perceptions, not from statistical analysis.  The study, in its initial analysis of the state of LPFM, states that any detailed information on the performance of LPFM stations generally is difficult to come by.  At best, they cite a few anecdotal reports of how such stations are serving their communities.  Yet, the report reaches the conclusion that the Commission, in implementing the Local Community Radio Act, should interpret that act to ensure that LPFM stations have access to urban audiences, without any assessment of conflicting positions that others may have on that issue.

But, if perceptions color the results, broadcasters can actually feel somewhat comforted in that some of their message is being heard at the FCC.  The report does find that the public trustee model of regulating broadcasters is "broken."  That model of course mandates that the broadcaster, in exchange for its use of the public spectrum, must broadcast programming that serves the public interest.  The report looks at the last 30 years of broadcast regulation, and finds that no broadcast station has lost its license for not serving the public interest.  It also questions the use of quarterly program issues lists as providing the basis of reviewing the service provided by broadcasters, as these lists are not filed with the FCC, are not uniformly kept, and are not regularly reviewed by anyone but the broadcaster.  

However, even though the report finds the public trustee model to be broken, it does not suggest a raft of new detailed regulations for broadcasters to follow (although Commissioner Copps, in his statement on the report, seems to suggest that the study should have suggested that kind of regulatory scheme).  Instead, the report seems to suggest that, if the public has more information about the performance of broadcasters, it should be able to better judge the performance of those broadcasters.  Thus, the report suggests the on-line public file.  It acknowledges that the Enhanced Disclosure forms that were adopted three years ago for TV stations, but never implemented, were excessive in their requests for information.  The report suggests that, instead, broadcasters provide a simpler, more streamlined on-line report as to their public interest programming (of course, no form is supplied, so how simple such a form would be is impossible to ascertain).  Moreover, the report suggests that the Localism proceeding, which many broadcasters had feared because of its very specific prescriptions as to how every station should operate, be terminated by the FCC - stating that many of the proposals in that proceeding were unduly burdensome. 

The report also suggests that more sponsorship information be provided by broadcasters as to the source of material contained in their news reports.  The concept of the video news release (which we have written about here) seemed to weigh on the report's writers.  They suggest that disclosure of where content in news programs originated be made not only on the air, but also online.

The Fairness Doctrine also was addressed by the report.  The authors find that the Doctrine inhibited the production of news, and was therefore properly found unconstitutional by the FCC in the late 1980s.  The report suggests that the FCC rule setting out the Doctrine be specifically repealed.  At the public meeting, Mr. Waldman suggested that this would mean that all shards of the Doctrine would be removed - perhaps at long last ending the specter of the Zapple Doctrine that we have written about from time to time during political seasons.

In discussing noncommercial programming, the report suggests, in response to a proposal from the National Religious Broadcasters Association, that the prohibition in FCC policies against noncommercial stations fundraising for other local nonprofit organizations be repealed or modified.  Waldman suggested that it made no sense that a noncommercial religious station could not do a fundraiser for some local soup kitchen, when the FCC has regularly waived that rule for fundraisers for distant disasters (see our posts on Haiti and Japan relief, where we raise that question).

There are many other nuggets buried in this report that we will no doubt discover as we read it in depth. While the report was simply a study, it was a study done with the cooperation of much of the FCC staff.  So ideas and opinions expressed in the study may give broadcasters a good barometer of the attitudes of some at the Commission.  So we will slog through the remainder of the report to see what we can find.  Watch for more articles on the findings and implications of the report in coming days. 

OMB Throws Out Leased Access Rules as Violation of Paperwork Reduction Act - Will TV Enhanced Disclosure Be Next?

Last week, the Office of Management and Budget determined that the FCC's new rules on Leased Access to cable channels (see our bulletin describing those rules) violated the Paperwork Reduction Act. This means that the new rules, which would have significantly lowered the cost for parties who wanted to lease cable channels to provide their own programming, will be sent back to the FCC for further consideration.  These rules are also on appeal to the Courts, which had stayed the effectiveness of the rules while the appeal is being considered, which is usually a good indication that the Court had issues with the rules as well.  The OMB action has the effect of returning the rules back to the FCC to be considered anew in light of the OMB findings.  Our firm has prepared a memo detailing the decision, here.  Given the OMB decision that these rules imposed too great a burden on cable systems, one wonders if this decision portends a similar result when the OMB reviews the FCC's rules on Enhanced Disclosure and an on-line public inspection file - rules that would impose a significant burden on television broadcasters (about which we wrote here).

The OMB decision on the leased access rules highlighted some of the perceived shortcomings of the FCC decision, including that the FCC had not shown that they had taken steps to minimize the burden on companies who would have to hire staff to comply with the new rules, and they had not provided reasons why reduced timeframes for responses to requests for leased access were necessary.  Looking at these standards, one would have to think that much of the same reasoning would apply to the FCC's Enhanced Disclosure requirements for TV stations as set out in the new Form 355.  The completion of the Form would clearly require the hiring of new staff.  We've also questioned whether the Commission has given any justification for the increased paperwork requirements, as the information itself has no regulatory purpose as the FCC has not adopted any quantitative standards for public interest programming.  With no purpose and increased costs, how could the OMB treat the enhanced disclosure requirements differently than it did the leased access requirements?

It's also interesting to note that both the leased access decision and the Form 355 were adopted at the Commission's November 2007 meeting.  Yet the Form 355 and the requirements for on-line public files still has not been considered by the OMB.  Perhaps the FCC recognizes its problems and intends to address the issues on reconsideration, in an attempt to minimize the burdens.  If not, watch for the OMB review, and see if indeed this decision portends good news for broadcasters when the the Form 355 is considered under the provisions of the Paperwork Reduction Act.
 
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