FCC EEO enforcement

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A few weeks ago, FCC Chairman Carr announced the beginning of the “Delete, Delete, Delete” proceeding at the FCC – looking at “alleviating unnecessary regulatory burdens” on the companies that it regulates, across all industries, to unleash companies to innovate, invest, and expand.  Comments are due April 11 and replies April 28.  With less than a week to go before comments are filed in this latest attempt to lessen the regulatory burden on broadcasters, we thought that we would look at some of the issues that may come up in this proceeding, and some of the policies that stubbornly remain on the books but should be addressed.

Broadcasters are expected to advance many ideas.  But, before considering some of the issues likely to be addressed, it is important to put this proceeding in context.  This is not the first time broadcasters have been asked to engage in this kind of exercise.  In the 1980s, the FCC conducted multiple proceedings to address the “regulatory underbrush,” eliminating, among other things, rules that had required specific amounts of news and public affairs programming on every station, rules mandating a specific number of PSAs, rules requiring specific program and engineering logs as official records for every station, and policies restricting advertising for certain perceived vices like parimutuel betting and fortune tellers.  In the 1990s, as a result of the 1996 Telecommunications Act, other obligations were changed (including the adoption of the current local radio ownership rules, the abolition of the ability of any party to file a competing application contending that it should get the right to operate a broadcast station every time a license renewal was filed, and extending the license renewal term from three to eight years (see our article on some of those changes, here).  Just eight years ago, FCC Chairman Pai initiated the Modernization of Media Regulation Initiative (see our article here).  That proceeding resulted in the abolition or streamlining of many FCC rules, such as the main studio rule (see our articles  here and here), some children’s television rules (see our posts here and here), and rules prohibiting same-service radio program duplication by commonly owned stations, although the prohibition on FM/FM duplication by commonly owned stations serving the same area was reinstated by the last administration, though that action remains subject to a reconsideration petition (see our articles here, here, here, and here on some of the other changes brought about by Chairman Pai’s initiative).  However, there were many other obligations left unaddressed.  There are so many rules applicable to broadcasters, and so many competitive changes in the market have  impacted the relevance of many of those rules, that no proceeding ever seems to address every issue it should.  But we expect that many rules will be addressed in this “Delete” proceeding. Continue Reading Less Than a Week to Go Before “Delete, Delete, Delete” Proposals on Eliminating Unnecessary FCC Regulations Are Due – What Should Be Included?

The full Commission this week issued an Order fining Cumulus Media $26,000 for its failure to upload one EEO Annual Public File Report to its online public inspection file until about 9 months after the due date.  The unanimous decision of the five Commissioners generally upheld an EEO Notice of Apparent Liability, issued unanimously by all four FCC Commissioners about two years ago, where the Commission had proposed a $32,000 fine on the company for its failure to timely upload the annual EEO report for a cluster of five co-owned stations in a Georgia market (and the fact that a link to that report on each stations’ website was also missing for that period).  The principal change in this week’s decision was to reduce the fine that had been proposed by $6,000, reflecting the amount that the Notice of Apparent Liability had assessed for the licensee’s failure to self-assess its EEO program. Broadcasters are required to regularly assess the effectiveness of their EEO program.  The proposed fine was imposed on the theory that, if the licensee had been regularly assessing its program, it would have noted that the required report had not made it to the online public file and fixed that problem.  This week’s decision reaffirms that reasoning but reduces the fine by the amount allocated to the failure to self-assess the program, finding that Cumulus may not have had notice that reviewing public file uploads was part of the obligation to self-assess.

It is very important to note that this decision did not cite any failure by the licensee to recruit widely when it had open positions, nor any failure of the group to conduct the required EEO non-vacancy specific outreach (these obligations described in our posts here and here).  The alleged violations cited in the decision were simply tied to the failure to upload the annual report.  In fact, Cumulus stated that the report was prepared on time, but was not uploaded to the public file because of an administrative oversight due to staff turnover.  While the base fine for this violation totaled less than $10,000, the proposed fine was increased because Cumulus was found to have previous FCC rule violations for EEO and sponsorship identification matters.  Both Cumulus and the NAB argued that this amount was excessive for a single instance of a paperwork shortcoming – the FCC rejecting that reasoning, finding that the upload was a critical part of the broadcaster’s EEO obligations as it gives the public a way to monitor the performance of the licensee. Continue Reading FCC Imposes $26,000 Fine on Broadcaster for One EEO Annual Public File Report that was Uploaded Late

The FCC this week released its second EEO audit notice for 2023.  The FCC’s Public Notice, audit letter, and the list of stations selected for audit is available here.  Those stations, and the station employment units (commonly owned or controlled stations serving the same area sharing at least one employee) with which they are associated, must provide to the FCC (by uploading the information to their online public inspection file) their last two years of EEO Annual Public File reports, as well as backing data to show that the station in fact did everything that was required under the FCC rules.  The response to this audit is due to be uploaded to the public file of affected stations by December 14, 2023. The audit notice says that stations audited in 2021 or 2022, or whose license renewals were filed after October 1, 2021, can ask the FCC for further instructions, possibly exempting them from the audit because of the recent FCC review of their performance.  Perhaps for this reason, no stations in New England or the Mid-Atlantic (NY, NJ, PA, and DE) states, are included in the list of audited stations, as stations in these states were the last to file their license renewals.

With the release of this audit, and the recent $25,000 fine proposed for some Kansas radio stations that had not fully met their EEO obligations (see our article here), it is important to review your EEO compliance even if your stations are not subject to this audit.  The FCC has promised to randomly audit approximately 5% of all broadcast stations each year. As the response (and the audit letter itself) must be uploaded to the public file, it can be reviewed not only by the FCC, but also by anyone else with an internet connection anywhere, at any time.  The recent proposed fine, a fine imposed on Cumulus Media for a late upload of a single EEO Annual Public File Report last year (see our article here), and the FCC’s pending consideration of the return of the EEO Form 395 reporting on the race and gender of all station employees (see our article here), shows how seriously the FCC takes EEO obligations.Continue Reading FCC Announces Second EEO Audit of 2023 – 150 Radio and TV Stations Must Report on Their EEO Compliance

Yesterday, in our article about the recent FCC random audit of the EEO performance of over 200 radio and TV stations, we noted that the FCC also reviews the EEO performance of broadcasters in connection with complaints, license renewal applications, and at the midpoint of the license period of most TV stations and larger radio operations.  The FCC’s Enforcement Bureau, in a Public Notice released yesterday, reminded us that this Mid-Term Review process is about to begin.  The FCC will be reviewing the performance of larger radio clusters in Maryland, DC, Virginia, and West Virginia, who are required to upload their Annual EEO Public Inspection File reports to their online public file by June 1.  While it is sometimes hard to believe how quickly time has passed, stations in these states are now at the mid-point of their licenses, as their last license renewal applications were filed on or before June 1, 2019. 

The FCC’s Mid-Term EEO review in the past was conducted through the filing of a Form 397 Report.  That report required that a licensee attach the last two years of EEO Public Inspection file reports and provide a contact person for EEO compliance at the station “employment unit” (a cluster of commonly controlled stations serving the same geographic area sharing at least one employee).  In 2019, the FCC did away with that report, finding that the employment reports were already available in station online public inspection files (and that the person responsible for EEO was already identified in the materials submitted with the station’s last renewal application)(see our article here).  So instead of filing a form, the FCC will simply review what is already in the public file.  But the Mid-Term review is only required for larger radio groups, which required the FCC to implement a settings update in their online public files.Continue Reading More FCC EEO News – FCC Reminds Broadcasters that EEO Mid-Term Reviews to Begin in June

Here are some of the regulatory developments of significance to broadcasters from the last week, with links to where you can go to find more information as to how these actions may affect your operations.

  • The FCC’s Enforcement Bureau issued a Notice of Apparent Liability proposing a $20,000 fine on an iHeart radio station for

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Here are some of the regulatory developments of significance to broadcasters from the last week, with links to where you can go to find more information as to how these actions may affect your operations.

  • The FCC proposed a $32,000 fine to a subsidiary of Cumulus Media for EEO and public file violations by a

…

On Friday, the FCC issued its first EEO audit of almost 300 radio and TV stations across the country (see the model audit letter and list of stations affected here), the day after announcing its intent to abolish the Form 397 EEO Mid-Term Report (see our articles here and here).  In the Order announcing the forthcoming abolition of the Mid-Term Report, the FCC also noted its intent to being a proceeding in the next 90 days to reexamine the effectiveness of its EEO program – signaling that EEO remains a priority of the FCC and that this audit should be taken very seriously.  While the FCC each year promises to audit 5% of all full-power broadcast stations, and this audit is likely but the first of a number of EEO audits for the coming year, this upcoming review of the effectiveness of the FCC’s EEO process highlights the continued importance of EEO enforcement to the FCC.

The response to the audit must be completed by April 1.  As the response (and the audit letter itself) must be uploaded to the public file, it can be reviewed not only by the FCC, but also by anyone else anywhere, at any time, as long as they have an internet connection.  The upcoming license renewal cycle adds to the importance of this audit, as a broadcaster does not want a recent compliance issue to headline the record the FCC will be reviewing with its license renewal (see our article here about the upcoming license renewal cycle).  The audit requires that the broadcaster submit their last two EEO Public File Reports (which should already be in the online public file) and backing data to support all of the outreach efforts listed on those public file reports.  Broadcasters subject to the audit should carefully review the audit letter to see the details of the filing.
Continue Reading FCC Starts First EEO Audit of Radio and TV Stations for 2019 – And Announces Upcoming Review of its EEO Audit and Enforcement Program

The FCC yesterday adopted an order moving broadcast EEO enforcement from the FCC’s Media Bureau to its Enforcement Bureau. The change will be effective later, after certain procedural approvals are obtained and after notice is published in the Federal Register. As EEO enforcement is primarily aimed at broadcasters and cable companies, and has been part of the Media Bureau responsibilities since the Bureau existed, why was this change made and what does it mean?

The FCC makes clear in its order that the reason for the move is that the Enforcement Bureau is for better enforcement of the EEO rules. Specifically, the FCC said this about the transfer of authority from the Media Bureau to the Enforcement Bureau:

The Enforcement Bureau’s staff has extensive experience conducting investigations and pursuing enforcement in a wide range of areas. They therefore are well positioned to provide assistance and guidance with EEO review, audit, and enforcement work. Further, the Enforcement Bureau has expertise in, and maintains tools and databases to aid with, the tracking of statutory deadlines, including those relevant to EEO audits and investigations, that the Media Bureau does not.

Thus, broadcasters need to be ready for more rigorous enforcement of the EEO rules.
Continue Reading Moving FCC EEO Enforcement from the Media to the Enforcement Bureau – What Does It Mean?