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.
- There was an additional flurry of activity related to the controversial FCC Media Bureau’s Public Notice issued in March which “reminded” broadcasters that Lowest Unit Charges (LUC) apply to advertising bought by political parties and joint fundraising committees when authorized by a federal candidate (see our Broadcast Law Blog articles here and here). Early in the week, the U.S. Court of Appeals for the Fourth Circuit issued a ruling granting a mandamus petition by several Democratic candidates compelling the FCC to act, by October 9, on the candidates’ application for review seeking to overturn the Public Notice. If the FCC acted on the application for review, that might moot the U.S. Supreme Court decision last month that had stayed the Fourth Circuit’s August decision that ads bought by political parties and joint fundraising committees did not get LUC – that the rates applied only to candidates themselves. The Supreme Court stay was premised on the fact that the Fourth Circuit decision overturned an FCC staff action before the FCC Commissioners had a chance to rule on the merits of that staff decision. As other courts had found that action by the full Commission was a precondition for judicial review, the Supreme Court thought that the Fourth Circuit decision ignored this precedent (see our articles here and here). If the full Commission acted on the application for review, as ordered in this week’s decision on the mandamus request, the Fourth Circuit might be able to overcome the procedural issue identified in the Supreme Court stay. However, before the FCC was compelled to act on the application for review as required by the mandamus order, the Supreme Court again intervened and issued a temporary stay, blocking the effect of the mandamus order at least until additional arguments could be heard. The FCC argued to the Supreme Court in its application for stay that it needed more time to consider public comments filed in response to the Democratic candidates’ application for review and on a related application for review of the Public Notice by TVB (see our note here). It also wanted to avoid uncertainty about the application of LUC in the middle of the campaign period before November’s midterm elections. The Republican National Committee and associated groups filed an amicus brief supporting the FCC’s pleading, echoing the FCC’s concerns. The Democratic candidates were ordered to file a responsive brief on October 10 so that the Supreme Court can issue a final ruling on the stay request. The candidates’ brief, here, argues that the FCC is purposely using delaying tactics to evade judicial review of the legality of the Public Notice. Watch for a Supreme Court decision soon on whether the stay should remain in effect.
- Two petitions were filed with the FCC seeking a stay of its decision to lift the 39% national ownership cap for television. One petition, filed by several state cable and broadband associations, argues that the Commission’s decision ignored the harms to consumers from the increase in retransmission consent fees that these associations fear will occur should there be more television ownership concentration. A second petition, filed by public interest and labor organizations, argues that the FCC does not have the authority to lift a cap set by Congress and that the Commission, in finding that lifting the cap would strengthen local stations so that they can better serve the public, ignored arguments that greater consolidation would actually harm broadcast localism.
- The FCC released its Quarterly Broadcast Station Totals. The release shows that compared to the same release from a year ago, there were 85 fewer AM stations and 54 fewer commercial FM stations, but 85 more noncommercial FM stations. There were also 6 more commercial UHF TV stations but 5 fewer VHF TV stations; 2 more noncommercial UHF TV stations but 2 fewer noncommercial VHF TV stations.
- The FCC’s Wireless Telecommunications Bureau announced the selection criteria and submission instructions for proposals for parties to serve in the position of the Upper C-Band Clearinghouse (see here). In July, the FCC adopted rules reconfiguring the upper C-band (3.7-4.2 GHz) for terrestrial wireless use and requiring incumbent operators, including C-band earth stations used by broadcasters for receiving satellite-delivered programming, to clear the band (see our note here). The Upper C-Band Clearinghouse would be responsible for administering the payment of transition costs, including reviewing and approving the actual cost and lump sum reimbursement claims filed by incumbent earth station operators transitioning out of the band. Clearinghouse candidates must submit their proposals for the position by November 9.
- The Media Bureau released a Notice of Proposed Rulemaking proposing the substitution of VHF Channel 11 for UHF Channel 34 at Des Moines, Iowa. The TV station proposing the substitution seeks to remain on its current Channel 11 after the station determined that it could not build out its Channel 34 facilities by its construction permit’s expiration date.
- The FCC’s Enforcement Bureau issued a Notice of Violation against the licensee of two North Carolina FM translators after the Bureau’s investigation found that the translators were operating while their designated AM primary station was off the air. The FCC rules prohibit a translator from operating for more than 24 hours after its primary AM station goes silent. The licensee must now explain to the Bureau how it will correct the rule violation and prevent future violations from occurring.
