At the beginning of each year, we publish our broadcaster’s calendar of important dates – setting out the many dates for which broadcasters should be on alert as this year progresses. The Broadcasters Calendar for 2017 is available here. The dates set out on the calendar include FCC filing deadlines and dates by which
General FCC
FCC Denies Reconsideration of Noncommercial Broadcasting Ownership Report Requirements – But Signs that New Commission May See Things Differently
The FCC’s Media Bureau yesterday issued an order denying reconsideration of the full Commission decision from last year, synchronizing the Biennial Ownership Report filing requirement for noncommercial broadcasters with that of commercial broadcasters, and requiring that all individuals who have attributable interests in these stations obtain an FCC Registration Number (an “FRN”)(see our summary of the FCC order from last year here). Yesterday’s decision triggered a rapid objection from the Commission’s Republican Commissioners, promising to review this decision after the Inauguration when Republicans will likely control the FCC. What is the controversy?
Obtaining an FRN requires supplying the FCC with an individual’s Social Security Number (“SSN”). Last year’s order also provided that stations could obtain a “Restricted Use FRN” for attributable interest holders who did not want to provide their SSN to the FCC, but such individuals would still have to provide at least the last 4 digits of their SSN, along with other specifically identifiable information including their residence address and date of birth. While none of this information is public (it is merely stored in FCC databases that issue the FRN), many noncommercial licensees objected to the requirements, believing that members of their governing boards, who are considered attributable owners for FCC purposes, may be very reluctant to provide that information to stations or the FCC. They pointed particularly to situations like university or other stations operated by educational institutions, where board members volunteer not because they are interested in broadcasting, but instead because they hope to influence the educational objectives of the university. The fear is that having to provide this information could discourage people from serving on these governing boards of educational and similar institutions. In some cases, noncommercial station board members have no real choice about their service – the position is required by virtue of public posts such as university president or school superintendent. See our summary here of those objections.
Continue Reading FCC Denies Reconsideration of Noncommercial Broadcasting Ownership Report Requirements – But Signs that New Commission May See Things Differently
FCC Approves Up to 49% Foreign Ownership of Univision – What Guidance is Provided to Potential Foreign Investors in US Broadcast Stations?
In a decision released yesterday, the FCC issued a Declaratory Ruling permitting certain identified foreign companies and individuals to own up to 40% of the voting interests in Univision, and allowed aggregate foreign ownership of up to 49% of the equity of the company. This decision noted that it was based not on the new rules for analyzing foreign ownership in broadcast stations approved by the Commission in late September (see our summary here), as those rules were not yet effective as they were only published in the Federal Register last month and certain aspects still needed to undergo analysis under the Paperwork Reduction Act. Instead, the request for the ruling in this case was analyzed under the 2013 Declaratory Ruling on ownership (see our summary here), the same ad hoc analysis used to review and approve Pandora’s acquisition of a radio station in 2015. While technically, the new rules did not apply to this proceeding, it is clear that the analysis of this decision would not be much different, as the Commission specifically refers to the new rules as setting what is reasonable in its ad hoc analysis of the circumstances of this case. Thus, this decision provides a good basis for determining what issues any potential foreign investor in a US broadcast station would face, particularly when investing in a public US company.
Even though the FCC looked to the new rules for guidance, the final conditions look much like those imposed on Pandora. Univision is required to seek specific approval for any acquisition of stock by any foreign shareholder not specifically approved in this order if that investor seeks to acquire an interest (either voting or equity) of greater than 5% of the company. The company must actively monitor its shareholders to assure that no specific foreign shareholder exceeds that 5% threshold and that foreign ownership does not exceed the aggregate 49% limit. The company cannot simply rely on the address of its shareholders in making a determination as to whether or not they are foreign, but instead must use reasonable efforts as defined in the October order (and set out in our summary) to establish the citizenship and ownership of its investors. The company also must insure that its organizational documents provide that, if any foreign owner causes the station to violate one of the restrictions imposed by the Declaratory Ruling, the company can redeem the stock of the owner. The company must also have provisions providing for the right to restrict foreign ownership and the right to require disclosure of citizenship information. The decision also notes that Executive Branch agencies had reviewed the proposal and did not find any potential security issues.
Continue Reading FCC Approves Up to 49% Foreign Ownership of Univision – What Guidance is Provided to Potential Foreign Investors in US Broadcast Stations?
January Regulatory Dates for Broadcasters – Quarterly Issues Programs Lists and Children’s Television Reports, Ownership and EEO Comments, Copyright Issues and More
Here we are at the start of a new year, and right away we have numerous regulatory deadlines for broadcasters. By the 10th of the month, all broadcast stations need to have placed in their public inspection files (online for TV and for those radio stations that have already converted to the online public file, and paper for the remaining radio stations), their Quarterly Issues Programs lists, documenting the issues of importance to their communities and the programs broadcast in the last quarter addressing those issues. TV stations have quarterly Children’s Television Reports due to be filed at the FCC by the 10th, addressing the programming that they broadcast to meet the educational and informational needs of children. Commercial TV stations should also add to their public file documentation to demonstrate their compliance with the commercial limits in programming addressed to children.
For TV stations, on the 1st of the year, new obligations became effective for online captioning. “Montages” of clips from TV programs, where all of those clips were captioned when broadcast, also need to be captioned when made available online. By July 1, clips of live and near-live programming must be captioned; however, they may be posted online initially without captions as long as captions are added to clips of live programming within 12 hours and to clips of near-live programming within eight hours after the conclusion of the TV showing of the full-length programming. For more on this requirement, see our article here.
Continue Reading January Regulatory Dates for Broadcasters – Quarterly Issues Programs Lists and Children’s Television Reports, Ownership and EEO Comments, Copyright Issues and More
And Then There Were Three – Chairman Wheeler to Step Down on Inauguration Day Leaving a Republican-Controlled FCC – What’s It Mean for Broadcasters?
After months of speculation, Chairman Wheeler today announced that he will step down from the FCC on Inauguration Day. Together with the Senate not confirming the renomination of Commissioner Rosenworcel (as the Senate is effectively on recess and not expected to return before the end of the term, her renomination will almost certainly not be approved in this session of Congress, meaning that she must step down when the Congress adjourns on January 3), that leaves three Commissioners on the FCC. Two are the current Republican commissioners – Pai and O’Rielly – and Democratic Commissioner Mignon Clyburn. What will that mean for broadcasters?
First, it is expected that one of the two Republicans will be named as Acting Chairman to set the agenda for the first few months of the Trump administration, until a permanent Chair is announced (and confirmed by the Senate, if that Chair is not one of the two current Republicans). These commissioners have been vocal in their dissents on several big issues for broadcasters – including the repeal of the UHF discount (about which we wrote earlier this week) and on other issues dealing with the ownership of television stations – including the decision to not repeal the newspaper-broadcast cross-ownership rules, and the decision to reinstate the FCC’s ban on Joint Sales Agreements in TV unless they are done between stations that can be co-owned. We already speculated about these issues being on the Republican agenda soon after the election. What other issues are likely to be considered?
Continue Reading And Then There Were Three – Chairman Wheeler to Step Down on Inauguration Day Leaving a Republican-Controlled FCC – What’s It Mean for Broadcasters?
December Regulatory Dates for Broadcasters – EEO Reports, Ownership and Ancillary Revenue Reports, Ownership Review and Incentive Auction Updates
While we are into the holiday season, that does not stop the routine regulatory obligations for broadcasters. December 1 brings a host of routine obligations for stations in many states. EEO public file reports must be added to the public files of Commercial and Noncommercial Full-Power and Class A Television Stations and AM and FM Radio Stations in Alabama, Colorado, Connecticut, Georgia, Maine, Massachusetts, Minnesota, Montana, New Hampshire, North Dakota, Rhode Island, South Dakota, and Vermont that are part of an Employment Unit with 5 or more full-time employees. Of course, for TV stations and radio stations that have already converted to the online public file, that will mean uploading those reports to the FCC-hosted public file. For all stations, a link needs to be included on the main page of your station website, if your station has a website, which leads to these reports. Mid-Term EEO Reports on FCC Form 397 must be filed with the FCC by December 1 by radio employment units with 11 or more full-time employees in Colorado, Minnesota, Montana, North Dakota, and South Dakota and television employment units with five or more full-time employees in Alabama and Georgia. For more on these Mid-Term Reports, see our article here.
A year from now, on December 1, 2017, all broadcast stations are expected to be required to file Biennial Ownership Reports, including noncommercial stations which now have those reports due on the anniversary date of the filing of their license renewal applications. See our article here on the new obligation that will be effective next year, though appeals of that requirement from some noncommercial groups are pending (see our article here). But, until that rule is effective, non-commercial stations need to continue to file on their renewal anniversary dates. Thus, on December 1 of this year, Noncommercial Television Stations in Alabama, Connecticut, Georgia, Maine, Massachusetts, New Hampshire, Rhode Island, and Vermont and Noncommercial AM and FM Radio Stations in Colorado, Minnesota, Montana, North Dakota, and South Dakota have the obligation to submit their Biennial Ownership Reports to the FCC.
Continue Reading December Regulatory Dates for Broadcasters – EEO Reports, Ownership and Ancillary Revenue Reports, Ownership Review and Incentive Auction Updates
Looking at the Last Night’s Election Results and the Future of Washington Policy For Broadcasters
Early this week, in some of the legal journals that circulate in Washington, there was much speculation as to potential appointees to various government positions after the election. For positions such as the chairman of the FCC, many of these publications listed familiar DC names as likely appointees if, as expected by most pundits, Hillary Clinton was elected president. On the Trump side of the leger, speculation was much vaguer, as few had any real insight into how his administration would implement the broad but, in many cases, imprecise policies that Mr. Trump expounded during the election. Given the results of last night, those speculations are sure to ramp up as everyone tries to guess what will happen with broadcast policy in a Trump administration.
At this point, we can only speculate as to what that election will mean for broadcast policy – particularly at the FCC. One would certainly expect a lessening of the regulatory burden on broadcasters – as lessening burdensome regulations on businesses was a clear plank of the Trump agenda. The make-up of the FCC will likely facilitate such changes, as Republicans will no longer be in the minority at the FCC. A third Republican will join Commissioners Pai and O’Rielly on the FCC. These two Republicans dissented on many issues of importance to broadcasters – including the recently concluded Quadrennial Review of the Ownership Rules. Thus, a third Republican vote could have changed the decisions on many issues.
Continue Reading Looking at the Last Night’s Election Results and the Future of Washington Policy For Broadcasters
November Regulatory Dates For Broadcasters – Incentive Auction, EAS, Political and More
November is one of those few months where there is a very light load of routine regulatory filings for broadcasters. This is a month with no routine FCC ownership or children’s television reports. There are no routine EEO reports for the public file, and no other FCC regularly-scheduled deadlines.
Of course, there are several other dates that broadcasters need to be aware of. October 31 is the end of the FM translator window to move translators up to 250 miles to serve AM stations – so November 1 will likely bring lessened demand for any translator that did not find a new AM home during the window that has been open to various groups of AM stations since January. Those looking for translators to operate with FM stations may find opportunities now less expensive, but harder to move, so opportunities will be limited to stations near to areas where the translators already are located.
Once the FCC’s Broadcast Incentive Auction for television has concluded, the FCC will announce two windows for new FM translators. These windows (the first for Class C and D AM stations only, and the second for Class A and B AM stations) will only be open to AM licensees that did not participate in the 2016 windows. See our article here for more information.
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FCC Sets Hearing to Determine if Station License Renewal Should Be Denied For Conducting Unsafe Contest
Last week, we wrote an article which received much attention, addressing the legal issues that could come up if contests are not conducted properly. One issue that we did not anticipate was reflected in an FCC order released yesterday, designating for hearing the license renewal of the Entercom Sacramento radio station that was involved in…
Summaries of the Legal Issues Facing Radio and TV Broadcasters – Staying on Top of Your Regulatory Obligations
Each quarter, my partner David O’Connor and I update a list of the legal and regulatory issues facing TV broadcasters. That list of issues is published by TVNewsCheck and is available on their website, here. This update was published today, and provides a summary of the status of legal and regulatory issues ranging…
