Here are some of the regulatory developments of significance to broadcasters from the past week, with links to where you can go to find more information as to how these actions may affect your operations.
- The FCC released a draft Report and Order that, if adopted at its next Open Meeting on March 26, would update and clarify several broadcast rules. These changes include updating rules conform to current licensing systems (including replacing outdated CDBS application form references with those currently used in LMS); eliminating outdated and obsolete requirements (including post-incentive auction viewer/MVPD notification requirements, the requirement for a 20% increase in AM station power for a power increase application to be processed, and the rule that restricted Special Temporary Authorizations for technical and equipment problems to 90 days when other STAs can be granted for up to 180 days); modifying the rules as to who can sign FCC applications to allow corporate directors and duly authorized employees of corporations, partnerships, unincorporated associations, or government entities to certify applications; and revising several broadcast rules for clarity (including clarifying when stations’ local public notice obligations are triggered for their applications).
- The FCC’s Media Bureau entered into two Consent Decrees to resolve its investigations of various FCC rule violations arising during its review of the station license renewal applications:
- The Bureau entered into a Consent Decree with an Arizona TV station to resolve an investigation of the station’s failure to comply with its Online Public Inspection File (OPIF) obligations. The Bureau found that the station failed to timely upload 14 Quarterly Issues/Programs lists and 9 commercial limits certifications to its OPIF during its last license renewal period. The Consent Decree requires that the station pay a $6,000 voluntary contribution to the U.S. Treasury.
- The Bureau also entered into a Consent Decree with an Oregon noncommercial FM station to resolve its investigation of the station’s failure to comply with the FCC’s underwriting rules arising from a complaint filed against the station. The Bureau found that the station aired 9 announcements that impermissibly promoted the sponsor because they contained comparative and qualitative descriptions, menu listings of products or services, and inducements to buy products or services. The Consent Decree requires that the station pay a $5,000 voluntary contribution to the U.S. Treasury and implement a compliance plan to ensure future compliance with the FCC’s underwriting rules. The Bureau also dismissed two petitions to deny the renewal application which raised additional FCC rule violations, including that the station’s most recent biennial ownership report was incomplete. The Bureau found that the station did not intend to deceive the FCC by filing an incomplete ownership report and it corrected the report when it was made aware of the issue, but it cautioned the station to be more diligent in the future in complying with its ownership reporting obligations.
- The FCC released a Memorandum Opinion and Order granting the transfer of an individual’s interests in the licensee of several Wyoming radio stations to her ex-husband following her felony conviction for income tax evasion. Criminal convictions call into question an individual’s character and fitness to hold an FCC license, and the FCC generally prohibits the assignment or transfer of a station’s license when character qualification issues are pending against the transferor. However, as ex-husband was not implicated in the wrongdoing and had a long history of FCC compliance, and as the wrongdoer will receive no consideration from the transaction and will no longer be part of the broadcast industry, the Commission found that grant of the application will preserve broadcast service to the Wyoming communities served by the stations and was otherwise in the public interest.
- Cumulus Media announced that filed for bankruptcy in a Texas federal bankruptcy court to eliminate roughly $600 million in debt. Cumulus stated that it will continue operating normally during the bankruptcy proceeding. Cumulus’ bankruptcy plan will need to be approved by both the bankruptcy court and the FCC (through the filing of transfer applications for its stations) before it can complete its bankruptcy restructuring.
- The FCC announced that comments are due May 1 in response to the following AM and FM stations’ proposed community of license changes: WZON(AM), Bangor, Maine, to Norridgewock, Maine; WAKE(AM), Valparaiso, Indiana, to Hobart, Indiana; WFAD(AM), Middlebury, Vermont, to Bridport, Vermont; WLBE(AM), Leesburg-Eustis, Florida, to Geneva, Florida; WLCZ(FM), Lincolnton, Georgia, to Appling, Georgia; WLNK-FM, Indian Trail, North Carolina, to Weddington, North Carolina; KXAV(FM), Hebbronville, Texas, to Bruni, Texas; and WMSU(FM), Starkville, Mississippi, to Artesia, Mississippi.
