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In his speech at the NAB Convention (available here), Chairman Pai promised to pursue a broadcast regulatory regime that made sense in today’s competitive media environment. He promised to move quickly to eliminate a number of the unnecessary broadcast rules, and specifically to repeal the main studio rule (see our articles here and here about the current requirements for the operation and staffing of the main studio).  Yesterday, the FCC took its first steps to quickly fulfill those promises, releasing two draft orders to be considered at its May 18 meeting, one to repeal the main studio rule and the second announcing the opening of a proceeding to review all of the other rules that govern broadcasters except the ownership rules that are already under consideration in other proceedings (see our posts here and here about some of the ownership rules already under review).

The draft Notice of Proposed Rulemaking seeking to eliminate the main studio rules asks a number of questions seeking support for the FCC’s tentative conclusion that the elimination of the main studio rule is in the public interest.  The NPRM asks questions and seeks information including:

  • how much money the elimination of the main studio rule would save stations,
  • the public interest benefits that would result from any monetary savings (e.g. better programming),
  • information about how often the main studio is currently visited by community members and why they visit,
  • information about how community members communicate with broadcasters with complaints or suggestions about broadcast operations,
  • whether stations can still serve the issues faced by their communities without having a physical presence,
  • whether abolition of the main studio rules in any way abrogates the station’s obligation to serve its local community that would undermine the FCC’s obligations under Section 307(b) of the Communications Act to allocate stations to communities that need service,
  • how the elimination of the rule would work in connection with the requirement that radio stations move their public file online (e.g. should an online public file be a precondition of abolishing the studio or can the paper file be maintained somewhere else if the studio rule is abolished before next March when the online public file is mandatory for all stations),
  • whether to continue to require that stations have a local phone number accessible to residents of their community of license, and
  • specific inquiries as to how Class A TV stations would meet their obligations to air local programs if they have no main studio.

Assuming the FCC adopts the Notice of Proposed Rulemaking at the May 18 meeting, public comments on the proposal and the questions asked by the FCC will be 30 days after the NPRM is published in the Federal Register.  That would likely put comments in late June or early July, with reply comments 15 days later.
Continue Reading Making Good on Deregulation – FCC Proposes to Eliminate Main Studio Rules and Review All Other Broadcast Regulatory Requirements

Last year, the FCC made some modifications in its assessment of foreign ownership of companies with broadcast interests, relaxing some of their compliance rules to take account of the realities of the current public stock trading marketplace – realities that, using the FCC’s old policies, made determinations of the level of foreign ownership in any…

Prometheus Radio Project, an advocacy group which has been active in lobbying for the interests of LPFM applicants and licensees, has asked that the FCC stay the April 10 effective date of the new rules liberalizing the location in which FM translators serving AM stations can locate (see its petition here). We wrote about those new rules here and here. Prometheus alleges that the liberalization in the rules will restrict the areas in which LPFM stations can locate their transmitter sites if the sites from which they currently operate become unusable. Their allegation is that the moves by these translators will “box in” LPFM stations at their current site. Based on this alleged harm, Prometheus asks for a stay of the effective date of the new rule while they appeal its adoption.

The petition does not say how this phenomena of “boxing in” LPFM stations will occur simply because translators can be located at distances greater than currently authorized. The new rules do not authorize new FM translators, and (contrary to some broadcast trade press reports published today) they do not give broadcasters another opportunity to move translators great distances from their current locations. All they do is change the rules so that, instead of limiting FM translators to the areas where their 1 mv/m contour does not extend beyond the lesser of the AM station’s 2 mv/m contour or a circle 25 miles from the AM station, the translator can operate in any area where its contour does not extend the 1 mv/m beyond the greater of the 2 mv/m contour or 25 mile circle. The new rules do not increase the permitted power of translators or in any other way significantly change their preclusive effect. In short, who is to say whether a translator will impose greater restrictions on LPFMs from their current locations or from locations authorized under the new rules?
Continue Reading Request Filed with the FCC to Stay Effective Date of New Liberalized Rules on the Location of FM Translators for AM Stations

With April Fools’ Day only a few days away, we need to play our role as attorneys and ruin the fun by repeating our annual reminder that broadcasters need to be careful with any on-air pranks, jokes or other bits prepared especially for the day.  While a little fun is OK, remember that the FCC does have a rule against on-air hoaxes. While issues under this rule can arise at any time, broadcaster’s temptation to go over the line is probably highest on April 1.  The FCC’s rule against broadcast hoaxes, Section 73.1217, prevents stations from running any information about a “crime or catastrophe” on the air, if the broadcaster (1) knows the information to be false, (2) it is reasonably foreseeable that the broadcast of the material will cause substantial public harm and (3) public harm is in fact caused.  Public harm is defined as “direct and actual damage to property or to the health or safety of the general public, or diversion of law enforcement or other public health and safety authorities from their duties.”  Air a program that fits within this definition and causes a public harm, and expect to be fined by the FCC.

This rule was adopted in the early 1990s after several incidents that were well-publicized in the broadcast industry, including one case where the on-air personalities at a station falsely claimed that they had been taken hostage, and another case where a station broadcast bulletins reporting that a local trash dump had exploded like a volcano and was spewing burning trash.  In both cases, first responders were notified about the non-existent emergencies, actually responded to the notices that listeners called in, and were prevented from responding to real emergencies.  In light of this sort of incident, the FCC adopted its prohibition against broadcast hoaxes.  But, as we’ve reminded broadcasters before, the FCC hoax rule is not the only reason to be wary on April 1. 
Continue Reading Plan Your April Fools’ Day On-Air Pranks with the FCC in Mind

As we wrote last week, the FCC approved the expanded use of FM translators by AM stations – allowing their use anywhere within a 25-mile radius of their AM transmitter site, or within the 2 mv/m contour of the AM station – whichever is greater.  The current rule restricts that will be replaced limit…

The FCC yesterday released its first decision approving 100% foreign ownership of a group of US broadcast stations. This comes after significant relaxation of the FCC’s interpretation of the foreign ownership limits which, less than 4 years ago, had been interpreted to effectively prohibit foreign ownership of more than 25% of a company controlling…

At its meeting yesterday, the FCC took two big actions affecting broadcasters. First, it approved a Notice of Proposed Rulemaking looking to adopt a transition plan for television broadcasters to move to the new ATSC 3.0 standard. The Commission apparently took the general actions previewed in its draft order released earlier this month, though…

A new President and a new Chair of the FCC have already demonstrated that change is in the air in Washington. Already we’ve seen Chairman Pai lead the FCC to abolish the requirement that broadcasters maintain letters from the public about station operations in their public file (which will take effect once the Paperwork Reduction Act analysis is finalized), revoke the Media Bureau guidance that had limited Shared Services Agreements in connection with the sales of television stations, and rescind for further consideration FCC decisions about the reporting of those with attributable interests in noncommercial broadcast stations and the admonitions given to TV stations for violations of the obligation for reporting the issues discussed in, and sponsors of, political ads (see our article here). Also on the table for consideration next week are orders that have already been released for public review on expanding the use of FM translators for AM stations and proposing rules for the roll-out of the new ATSC 3.0 standard for television. Plus, the television incentive auction moves toward its conclusion in the repacking of the television spectrum to clear space for new wireless users. Plenty of action in just over 3 weeks.

But there are many other broadcast issues that are unresolved to one degree or another – and potentially new issues ready to be discussed by the FCC this year. We usually dust off the crystal ball and make predictions about the legal issues that will impact the business of broadcasters earlier in the year, but we have waited this year to get a taste for the changes in store from the new administration. So we’ll try to look at the issues that are on the table in Washington that could affect broadcasters, and make some general assessments on the likelihood that they will be addressed this year. While we try to look ahead to identify the issues that are on the agenda of the FCC, there are always surprises as the regulators come up with issues that we did not anticipate. With this being the first year of a new administration that promises a different approach to regulation generally, what lies ahead is particularly hard to predict.
Continue Reading What’s Up for Broadcasters in Washington Under the New Administration – A Look Ahead at TV and Radio FCC Issues for the Rest of 2017