License Renewal

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In addition to the elimination of the main studio rule (about which we wrote here), another media item is proposed for consideration at the FCC’s October 24 meeting. A draft Notice of Proposed Rulemaking (NPRM) was released earlier this week proposing two changes in FCC requirements – neither change, in and of itself, offering any fundamental modifications of significant regulation, but both showing that this Commission is looking to eliminate bothersome burdens on broadcasters where those burdens are unnecessary in today’s media world or where they do not serve any real regulatory purpose. One change proposes to limit the requirement for TV stations to file Ancillary and Supplementary Revenue Reports to those stations that actually have such revenue, and the other proposing to eliminate the obligation of broadcasters to publish local public notice of significant application filings in a local newspaper.

The first deals with the filing by TV stations of FCC Form 2100, Schedule G (formerly Form 317), which reports on the ancillary and supplementary services revenue received by the TV station. This revenue is received by data transmission and other non-broadcast uses of the station’s spectrum. The report is necessary as, by law, each station offering such services must pay a fee of 5% of that revenue to the Federal government. So, by December 1 of each year, under current rules, each TV station must file the form stating how much revenue they received from these non-broadcast services. As most TV stations have not monetized their excess digital capacity by making it available for non-broadcast “ancillary and supplementary” services, most stations dutifully submit a report each December saying that they have not received any such revenue. To minimize paperwork burdens, the FCC draft NPRM proposes to amend the rule so that the majority of stations need not file this report simply to say that they have no revenue – the obligation to file the report would apply only to those stations that actually have some revenue to report.
Continue Reading Two More Paperwork Burdens Proposed for Relaxation Under FCC’s Modernization of Media Regulation Initiative – TV Ancillary and Supplementary Revenue Reports and Public Notice Requirements

The beginning of a calendar quarter always brings numerous regulatory obligations, and October is one of those months with a particularly full set of obligations. All full-power broadcasters, commercial and noncommercial, must complete their Quarterly Issues Programs Lists and place these reports into their public inspection files by October 10. These reports are the FCC’s only official record of how a station served its community. They document the broadcaster’s assessment of the most important issues facing their communities, and the programming that they have broadcast to address those issues. Failing to complete these reports was the biggest source of fines during the last license renewal cycle – with fines of $10,000 or more common for stations missing numerous reports during the license renewal term (see, for example, our articles here, here and here). With the public inspection file for all TV stations now being online and the public file of large radio groups in major markets also already converted to being online, the timeliness of the completion of these reports and their inclusion in the public file can now be assessed by the FCC and anyone else who wants to complain about a station’s regulatory compliance (as documents added to the public file are date stamped as to their inclusion, and the FCC has used this stamp to assess station’s compliance in other areas, see our post here). All other radio stations will be converting to the online file by March 1, 2018 and will need to upload this quarter’s reports into the file by that date (along with all others back to your last license renewal, see our post here), meaning the reports they complete this quarter too can be scrutinized from afar. Thus, be sure that you complete this important requirement.

TV stations have the additional quarterly obligation of filing with the FCC by October 10 their Quarterly Children’s Television Reports, Form 398. These reports detail the educational and informational programming directed to children that the station broadcast in the prior quarter. These reports are used to assess the station’s compliance with the current obligation to broadcast at least 3 hours per channel of programming addressing the educational and informational needs of children aged 16 or younger. Late-filed Children’s Television Reports, too, were the source of many fines for TV broadcasters in the last renewal cycle (see, for instance, our articles here and here), so don’t forget this obligation and don’t be late in making the required filings. At the same time, TV stations should also include in their public file documentation showing that they have complied with the limitations on commercialization during children’s programming directed to children 12 and under.
Continue Reading October Regulatory Dates for Broadcasters – Quarterly Issues Programs and Children’s Television Reports, EEO Obligations, Repacking Reports and More

Earlier this year, the FCC eliminated the requirement that broadcasters maintain, in their public inspection files, copies of letters from the public about station operations (see our article summarizing that action here). One aspect of that rule change did not become immediately effective, as it was subject to review by the Office of Management…

The FCC announced a Consent Decree with a New Jersey TV station where the licensee agreed to make a $17,500 payment to the US Treasury for failing to identify “core” educational and informational programming directed to children with the required “E/I” symbol on the programming itself. This programming was, according to the consent decree, run…

The FCC yesterday took what some may suggest is an unprecedented action to potentially deny the license renewal of an FM broadcast station that was silent for all but one day each year during its license renewal term. According to the Hearing Designation Order, the station operated one day each year to avoid forfeiting its license pursuant to Section 312(g) of the Communications Act (a provision we have written about here and here, which provides for the automatic cancellation of the license of a broadcast station that has been silent for more than one year). The order released yesterday points to a 20 year-old case as warning broadcasters that, if they do not operate for substantial portions of a license renewal term, they are in danger of losing their license. As the FCC points out, if the station is not operating, it cannot fulfill the obligation of a licensee to serve the public interest.

The hearing scheduled by the FCC will be a “hearing” in name only. As there are unlikely to be disputed facts, the FCC has adopted a simplified process of a paper hearing. The licensee of the station will need to submit all the records of station operations during the last renewal term, if such records exist (e.g. station logs, issues-programs lists, and EAS test reports), and a written statement of no more than 25 pages setting out why the license should be renewed. That evidence, along with any comments filed by any party that wants to intervene in the case, will be reviewed by the Commissioners themselves. No oral presentation will be made, and no administrative law judge will be involved in the review of the record compiled by this station. Hearings where the FCC proposed to revoke the license of a station have in the last four decades been held before an administrative law judge, usually with live witnesses. In commenting on this new procedure, Commissioner O’Rielly notes that cases before an administrative law judge can take years to resolve, and often end up being reviewed by the Commissioners themselves anyway, so this paper hearing before the Commission will be much more efficient.
Continue Reading FCC To Hold Hearing to Determine Whether to Deny License Renewal of Radio Station that was Silent for Most of its License Term

Last week, the FCC issued a consent decree entered into with a broadcaster who is the licensee of multiple radio stations, many of which were silent for long periods during the last license renewal cycle. As part of the deal, in order to get renewals for 12 stations granted, the licensee agreed to either…

The FCC on Tuesday voted to abolish the 44 year old requirement that commercial broadcast stations retain, in their public file, letters (and emails) from the public dealing with station operations (see the full Order here). As noted by the Commissioners in their comments at the FCC meeting (and as we suggested here and here when this proposal was first introduced), these documents were rarely if ever accessed by the public. Mirroring our comments from last year, the Commission noted that, in today’s world, where social media is where so many people take to comment on each broadcaster’s every action, and where the comments are open to all and preserved for posterity, the requirement for the retention of letters in a paper public file was felt to be no longer necessary. Plus, with the rest of the public file either already online or soon to go online when the last radio stations convert to the FCC-mandated online public file next year (see our articles here and here), the elimination of this requirement allows stations to have more security at the main studios as people can’t just show up unannounced to view the file, as required under the current rules.  Note that this will change the rules only for commercial stations – noncommercial stations have never had the obligation to include letters from the public in their public inspection files.

Much of this was expected in light of the new deregulatory bent of the Commission. About the only issue that had not previously been highlighted was the associated elimination of the requirement for TV stations that they report letters from the public about violent programming in their license renewal applications. The statute requiring the disclosure of these letters applied only to letters which the FCC rules required to be retained by the station. As the FCC will no longer require those letters be retained, the FCC found that the need to report letters about violent programming was now moot – and instructed the Media Bureau to delete the requirement from the license renewal forms. Because the reporting requirement lacked any real purpose, since the FCC has never sanctioned a broadcaster for violent programming and likely has no jurisdiction to restrict such programming, the abolition seems to be nothing more than the elimination of an unnecessary paperwork burden on broadcasters.
Continue Reading FCC Votes to Abolish Requirement for Retaining Letters From the Public on Station Operations – First Step in Broadcast Deregulation?

Last week, the full FCC issued a decision upholding the license renewal grant of a Pacifica-owned radio station in New York. A listener was complaining that the station broadcast favorable statements about an individual who had shot a police officer. The FCC first noted that the listener had not provided details of the statement, but further stated that the FCC is not allowed to censor the content selected by broadcasters to air on their stations. Specifically, the FCC said: “A licensee has broad discretion — based on its right to free speech7 — to choose, in good faith, the programming it believes serves the needs and interests of its community of license.” The FCC is bound by the First Amendment to not judge the subject-matter content of what broadcasters broadcast. Instead, it regulates structurally, in a content-neutral manner through rules like the multiple ownership requirements, to avoid second-guessing the decisions of broadcasters as to what is said on the air.

The interplay between the First Amendment and FCC rules has been the seen in the handling of many issues by the FCC. We’ve written about it in the context of the abolition of the Fairness Doctrine, and when the FCC in 2014 officially abolished the last vestige of that doctrine – the Zapple Doctrine. We’ve also written (here and here) about that in connection with calls for the FCC to ban attack ads which can sometimes make over-the-top claims about political candidates – the truth or falsity of which broadcasters are sometimes required to determine when the attacked candidate challenges those ads and threatens to sue the station that is running them. Why doesn’t the FCC make those determinations? Because we don’t want the government deciding what can and cannot be run on the air. There are of course libel laws that can be used to crack down on false statements – even those in political ads – but standards for finding liability against public officials and other public figures are set high to block those laws from being used to suppress valuable debate on the issues (see our article here ).
Continue Reading License Renewal Shows FCC Does Not Regulate Content – Implications for Calls to Regulate Fake News?

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…

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…