As expected, at its monthly open meeting yesterday, the FCC started two proceedings of particular importance to broadcasters. The first looks at the abolition of the main studio rules. The second asks for comments on all of the other rules affecting broadcasters and other media companies to see which are ripe for appeal. For the most part, the proposals as adopted mirrored the draft orders released for public review back at the end of April, which we summarized here.

The proposal to review all media rules – referred to as the Modernization of Media Regulation – will look at all media-related FCC rules with the idea of eliminating or modifying those that no longer make sense in the modern media environment. Only the multiple ownership rules, already under review in separate proceedings (see our posts here, here and here) are excluded from this review. Comment dates for proposals to change specific rules are due by July 5, with replies due August 4. The two Republican commissioners supported this proposal. Commissioner Clyburn, the FCC’s lone Democrat, dissented from the adoption of the Public Notice launching the inquiry, not necessarily because she is opposed to review of existing rules, but because she felt that the notice presupposes that the public interest can only be achieved by abolishing rules that limit industry operations. She suggests that many FCC rules remain important – including EEO rules, Biennial Ownership Reports, and certain rules governing access to cable programming. The Republican commissioners, on the other hand, point to the efficiencies that can be gained by abolishing rules that no longer make sense, or which require filings that serve no particular purpose (see Commissioner O’Rielly’s statement here). No doubt, these differing perceptions of the rules will be reflected in comments filed by various parties in this proceeding.
Continue Reading FCC Officially Starts Proceedings to Abolish Main Studio Rule and Review All Other Broadcast Rules

May is one of the few months without the normal list of quarterly filings and EEO public file reports.  But, just because there are none of these regular filings due, that does not mean that the month will be a quiet one for broadcasters on the regulatory front.  In fact, far from it.  There are obligations for television broadcasters in connection with the incentive auction and the subsequent repacking of the TV spectrum, an FCC meeting that will start two proceedings that could dramatically reduce the regulatory burdens of broadcasters, and comments due on the FCC’s proposal for the next generation of television broadcasting.

In connection with the incentive auction, on May 11, stations that are relinquishing their channels in exchange for compensation from the FCC must file an FCC Form 1875 detailing where payments for that relinquishment will go.  After that information is received and processed, the FCC will send an email to the payee asking for bank account information that must be entered into the “CORES Incentive Auction Financial Module.”  Stations looking for their auction payouts need to observe these details so the FCC knows where to send their money.
Continue Reading May Regulatory Dates for Broadcasters – Incentive Auction, ATSC 3.0 and Broadcast Deregulation

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

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

The FCC’s proceeding on revitalizing AM radio is headed into its second phase, looking at further steps that it can take to assist the oldest broadcast service adapt and thrive in the new media world. In the Fall, the FCC adopted certain policy and rule changes to help AM stations, most notably allowing wider use of FM translators to rebroadcast AM stations through waivers allowing translators to change channels and be moved up to 250 miles to serve an AM station (see our articles here and here for more details). Now the proceeding moves on to consideration of additional proposals on which the FCC seeks comments. The comments are due on March 21. Proposals to reduce the protections afforded to “clear channel AM stations” and the end of dual-band operations by certain stations that were given expanded band channels (at the top end of the AM dial between 1610 and 1700 AM) have received a fair amount of comment in the trade press, but there are other proposals as well. What are some of the issues that the FCC is considering? A brief summary of some of the proposals is set out below.

Lessening of AM station protections. The FCC offered three proposals for a lessening of interference protections afforded to AM stations. To some, lessening of the interference protections between AM stations might seem to be a backward step in improving the service (and a step that is in many ways undoing the FCC’s last major review of the AM rules 25 years ago, where the focus was on minimizing interference between AM stations). But, in each of these cases, the FCC now sees the major culprit in the decreasing popularity of AM stations as not the interference between AM stations, but instead the interference that comes from environmental background “noise” from all of the electronic gadgets that are now part of everyday life. To overcome that background noise, the FCC’s underlying rationale in most of these proposals is to make it possible for more local AM stations to increase their power. While the power increases might lead to increased interference between AM stations, it is the FCC’s premise that most of the interference would be in areas far from the station’s primary service area – and increased power in the center of service areas would make up for the losses by helping the stations to overcome the background noise. Of course, even with the proposals, not all AM stations will be able to increase power, so the stations that suffer interference in their outer coverage areas may not be the same stations that receive benefits from the service improvement in their core markets. Here are the areas in which the FCC proposes to decrease protections between AM stations.
Continue Reading Comments on FCC Proposals for More AM Revitalization Efforts Due March 21 – What Questions are on the Table?

The FCC issued a Forfeiture Order this week, fining a station $7000 for violations of the main studio rule. The facts of the case were set out in a Notice of Apparent Liability issued back in February, where the licensee had claimed that its studio was in a location that was shared with another broadcaster

The FCC’s main studio rules require that broadcast stations have a main studio open during normal business hours.  And, when the studio is open, it obviously needs to be manned so that someone is there to meet any visitors who my show up.  And, sometimes, those visitors are from the FCC.  When the FCC shows up, one would think that station employees would go out of their way to greet the inspectors and provide them what they want.  But in two cases decided this week, that simply didn’t seem to be the case, resulting in two notices of apparent liability proposing $10,000 fines.

One case involved a cable system (which also has a public file obligation and a duty to make the file available during normal business hours), whose employees allegedly asked FCC inspectors to return the next day when a supervisory employee would be present.  In a broadcast case, the FCC inspectors found an apparently unmanned building at what was supposed to be the station’s studio site and, when a woman arrived who was apparently the wife of the owner, rather than letting the inspectors in to the building, she told them they would have to call her husband – who did not answer his phone.  In responding to an FCC letter about the inspection that suggested that there was a violation, the licensee said that the inspectors erred by not ringing the door bell, and that employees come and go as they are needed, but are usually there during the day.  After getting that response, the FCC inspectors returned to the station to conduct another inspection, and found no doorbell, and an office that was again empty.  Obviously, these are preliminary findings of liability, and the facts and law, upon further examination, may prove to be different than what the FCC set out.  But broadcasters should take note of the FCC’s actions. Continue Reading When the FCC Comes Knocking, Answer the Door! – $10,000 Fines for Unattended Main Studios

The FCC has continued this week on its recent tear of fining broadcast stations and other regulated entities for violations of FCC rules – in the last week proposing fines or reaching consent decrees relating to issues including incomplete public filesEAS violations, unauthorized transfers of FM translators, and tower lighting issues, among others.  But a fine issued to a station a few weeks ago merits further review as it provides some more clarity as to what the FCC requires from a broadcast station’s "main studio."  In this recent case, the FCC proposed a $21,000 fine to this broadcaster who allegedly did not have an adequate main studio or public file, and for operating its AM station after sunset with its daytime facilities.

What do the FCC main studio rules require?  Currently, all full-power broadcasters (including Class A TV stations, with the limited exception of satellite television stations and some noncommercial radio satellite stations who may operate with main studio waivers) must maintain a studio either within its city of license, or at another site either within 25 miles of its city of license or within the city-grade contour of any station licensed to the same city of license as the station.  As set out in Section 73.1125 of the FCC rules, no matter where the studio is located, local residents must be able to reach the station by a toll-free telephone call.  The rule, however, does not specifically state what must be at the main studio – those rules are either found elsewhere in the FCC rules or have been developed by caselaw.Continue Reading What Do The FCC Main Studio Rules Require? – Recent $21,000 Fine Offers Some Clarification

$15,000 per station was the cost of a broadcast licensee’s failure to adequately supervise two stations of which he was the licensee, but which were operated pursuant to time brokerage agreements or LMAs. Like many stations in these tough economic times, this licensee decided to allow a third party to provide the bulk of the programming and retain the bulk of the sales revenues, in exchange for a payment. However, as the licensee remained the licensee, he was required to maintain and exercise control over the station’s operations, and maintain a meaningful staff presence at the station. In reviewing the operations of these stations, the FCC’s Enforcement Bureau in recent decisions (here and here) concluded that the adequacy of that control was insufficient – providing a warning to other station licensees operating under LMA agreements that they must maintain operational control over the stations that they own.

The FCC has long said that a licensee must maintain a meaningful staff presence at a station, even if the station receives the vast majority of its programming from some other source – whether that is a network or programming provided under an LMA. Meaningful presence has required that at least two employees at the station be employed by the licensee, one of whom must be managerial and perform no services for the broker providing the programming under the LMA. This case makes clear that these required licensee employees must be physically present at the station’s main studio on a regular day to day basis – they cannot be located at some distant location supervising the station remotely or only periodically present at the main studio. Failure to have the station’s main studio manned by the required personnel in and of itself accounted for $7000 of the fine in this case.Continue Reading FCC Issues $15,000 Fines For Unauthorized Transfer of Control and Main Studio Staffing Violations for LMA Done Wrong