License Renewal

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With the holiday season getting smaller in the rear-view mirror and many parts of the country dealing with ice, snow, and single-digit temperatures, broadcasters could be forgiven for dreaming about the sunshine and warmth that come with spring.  Before spring arrives, however, broadcasters need to tend to important regulatory matters in February.  And, if you find yourself eager to plan past February, use our 2020 Broadcasters’ Calendar as a reference tool for tracking regulatory dates through the end of 2020.

But focusing on the month ahead, by February 3, all AM, FM, LPFM, and FM translator stations in Arkansas, Louisiana, and Mississippi must file their license renewal applications.  For the full-power stations in the state, there’s an additional EEO task to complete irrespective of how many employees a station employment unit (SEU) has.  Before filing for license renewal, stations in these three states must submit FCC Schedule 396. This schedule is the Broadcast Equal Employment Opportunity Program Report, which is a reporting to the FCC of the SEU’s equal employment opportunity activities for the last license period (SEUs with fewer than five full-time employees are not required to maintain an EEO recruitment program and are only required to check a box that they have fewer than 5 full-time employees and skip ahead to the certification).  The sequencing here is important: When filing for license renewal, the application (Schedule 303-S) asks for the file number of your already-filed Schedule 396.  So, without having already filed the schedule, you won’t be able to complete your renewal application.…
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While many of us were trying to enjoy the holidays, the world of regulation kept right on moving, seemingly never taking time off.  So we thought that we ought to highlight some of the actions taken by the FCC in the last couple weeks and to also remind you of some of the upcoming January regulatory deadlines.

Before Christmas, we highlighted some of the regulatory dates for January – including the Quarterly Issues Programs Lists due to be placed in the online public file of all full-power stations by January 10.  Also on the list of dates in our post on January deadlines are the minimum SoundExchange fees due in January for most radio stations and other webcasters streaming programming on the Internet.  January also brings the deadline for Biennial Ownership Reports (postponed from their normal November 1 filing deadline).

In that summary of January regulatory dates, we had mentioned that the initial filing of the new Annual Children’s Television Programming Report would be due this month.  But, over the holiday week, the FCC extended that filing deadline for that report until March 30 to give broadcasters time to familiarize themselves with the new forms.  The FCC will be doing a webinar on the new form on January 23.  In addition, the FCC announced that many of the other changes in the children’s television rules that were awaiting review under the Paperwork Reduction Act had been approved and are now effective.  See our article here for more details.…
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Late Friday, the FCC issued an Order reinstating the FCC’s 2016 ownership rules, recognizing that the changes made in those rules in 2017 (see our post here) were no longer effective because the Third Circuit Court of Appeals had thrown out the 2017 decision. See our post here on the Third Circuit decision and our article here on the court’s denial of rehearing en banc.  While the FCC may still try to appeal the Third Circuit decision to the Supreme Court, the Third Circuit’s mandate has issued, meaning that its order is effective even if a Supreme Court appeal is filed.

Among the rule changes that have been rendered a nullity are the abolition of the broadcast-newspaper cross-ownership rule (once again reinforcing what we have written several times, that the rule may well outlive the daily newspaper) and the radio-television cross-ownership rule, the local TV ownership rule that had allowed combinations of two TV stations in the same market even if there were not 8 independent voices in the market after the combination, and changes to the FCC’s processing policy with respect to radio embedded markets.  These changes required the FCC to also issue two Public Notices dealing with these changes.…
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With many Americans using the holiday season to rest and recharge, broadcasters should do the same but not forget that January is a busy month for complying with several important regulatory deadlines for broadcast stations.  These include dates that regularly occur for broadcasters, as well as some unique to this month.  In fact, with the start of the lowest unit rate windows for primaries and caucuses in many states, January is a very busy regulatory month.  So don’t head off to Grandma’s house without making sure that you have all of your regulatory obligations under control.

One date applicable to all full-power stations is the requirement that, by Friday, January 10, 2020, all commercial and noncommercial radio and television stations must upload to their online public file their quarterly issues/programs list for the period covering October 1 – December 31, 2019.  The issues/programs list demonstrates the station’s “most significant treatment of community issues” during the three-month period covered by each quarterly report.  We wrote about the importance of these reports many times (see, for instance, our posts here and here).  With all public files now online, FCC staff, viewers or listeners, or anyone with an internet connection can easily look at your public file, see when you uploaded your Quarterly Report, and review the contents of it.  In the current renewal cycle, the FCC has issued two fines of $15,000 each to stations that did not bother with the preparation of these lists (see our posts here and here on those fines).  In past years, the FCC has shown a willingness to fine stations or hold up their license renewals or both (see here and here) over public file issues where there was some but not complete compliance with the obligations to retain these issues/programs lists for the entire renewal term.  For a short video on the basics of the quarterly issues/programs list and the online public inspection file, see here.…
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At its October open meeting, the FCC adopted a Notice of Proposed Rulemaking looking to abolish its rule that bars a broadcast licensee from prohibiting a competitor from using a “unique” transmitter site that it controls. The rule was adopted decades ago and never used. It provides that a license renewal would not be granted…

November is not one of those months with due dates for renewal filings, EEO public file reports or quarterly issues programs reports. Some of those obligations wait until December, when renewal filings for radio stations in Georgia and Alabama are due by December 2 (as December 1 falls on a weekend). Due for uploading on or before December 1 are EEO public file reports for station employment units with 5 or more full-time employees for radio or television stations in Alabama, Colorado, Connecticut, Georgia, Maine, Massachusetts, Minnesota, Montana, New Hampshire, North Dakota, Rhode Island, South Dakota, and Vermont.

November 1 does signal the first day on which radio and TV stations can file their Biennial Ownership Reports. As we wrote here, the FCC has extended the deadline date for those filings until January 31, 2020 as the FCC is making refinements in its forms in the LMS filing system. Reports are to reflect the licensee’s ownership as of October 1, 2019 so stations have the information that they need and can start filing their reports later this week.…
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A pattern is being established – $15,000 and a short-term, 2-year license renewal seem to have become the standard penalty for stations that are missing all of their Quarterly Issues Programs Lists for a license renewal term.  Yesterday, the FCC’s Media Bureau issued a proposed fine to a Virginia station that had failed to complete any Quarterly Issues Programs lists during its 8-year license renewal term.  The proposed $15,000 fine, and a renewal for only 2 years rather than the normal 8-year term, is the same penalty proposed two weeks ago in another case (which we wrote about here) where a station had similar problems.  These two cases seem to announce that this is the base penalty for stations that simply have not bothered to complete any Quarterly Issues Programs lists.

Yet to be seen is what happens when a broadcaster has completed some but not all of the required public file paperwork.  Last week, the FCC granted many of the license renewal applications from the first round of radio license renewals (for stations in Maryland, Virginia, West Virginia and the District of Columbia).  The granted applications were the ones that had few if any problems.  With the FCC having acted at the two extremes – renewal grants for those with no issues and $15,000 fines and short-term renewals for those with significant issues – the Commission now needs to fill in the holes, deciding what to do with those applicants that fell somewhere between these two extremes.  Watch for decisions from the FCC to see whether penalties are imposed on stations that fall in the middle in coming months.…
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October is one of the busiest months on the broadcaster’s regulatory calendar. On October 1, EEO Public Inspection file reports are due in the online public file of stations that are part of an Employment Unit with 5 or more full-time employees in Alaska, Florida, Hawaii, Iowa, Missouri, Oregon, Washington, American Samoa, Guam, the Mariana Islands, Puerto Rico, Saipan, and the Virgin Islands. An employment unit is one or more commonly controlled stations in the same geographic area that share at least one employee.

October 1 is also the deadline for license renewal filings by radio stations (including FM translators and LPFM stations) in Florida, Puerto Rico and the Virgin Islands. On the 1st and 16th of the month, stations in those states, and in North and South Carolina, need to run post-filing announcements on the air informing listeners about the filing of their license renewal applications. Pre-filing announcements about the upcoming filing of license renewal applications by radio stations in Alabama and Georgia also are to run on the 1st and 16th. See our post here on the FCC’s reminder about the pre- and post-filing announcements.…
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At its open meeting this week, the FCC adopted a Further Notice of Proposed Rulemaking looking to change the requirement for local public notice of certain broadcast applications.  Such notices are required currently for applications, including license renewals and station sales.  The current rules contain different requirements for different types of applications that…

On Friday, the FCC’s Audio Division released its first decision in the current renewal cycle addressing the issue of incomplete public inspection files and missing Quarterly Issues Programs List, proposing to fine an AM station in Virginia $15,000 for apparently not having any Issues Programs Lists in its online public inspection file for the entire renewal term.  The decision, found here, should serve as a warning to broadcasters to make sure that their online files are complete and up to date.

The facts of this case, summarized below, seem particularly egregious as the station had the same issue of missing issues programs lists when its last renewal was filed 8 years ago.  Nevertheless, we can expect that this won’t be the last fine we will see for stations that have incomplete public files.  The FCC has been sending out warnings about incomplete online files for the last year, and we’ve been warning (see, for instance, here and here) that, with all public inspection files now being available online, the FCC will likely be issuing fines during this renewal cycle if documents are missing from the file.  The Quarterly Issues Programs lists are seen by the FCC as being particularly important as they are the only official documents demonstrating the public interest programming that was actually broadcast by a station (see our article here). …
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