NCE comparative criteria

Last week, the FCC adopted an order making numerous changes to its processes for selecting winning applicants among mutually-exclusive applicants for new noncommercial broadcast stations, including noncommercial, reserved band full power FM stations and LPFMs. Applicants are “mutually exclusive” when their technical proposals are in conflict – meaning that if one is granted it would create interference to the other so that the other cannot also be allowed to operate. The changes adopted by the FCC, which we wrote about when first proposed here, affect not only the process of applying for new noncommercial stations and the system for resolving conflicts, but also address the holding period for new stations once construction permits are granted, and the length of permits for LPFM stations.

In cases involving mutually exclusive applications for new noncommercial stations, the FCC uses a “points system” to determine which of the mutually-exclusive applicants should have its application granted. The point system relies on paper hearings to determine which applicant has the most points, awarding preferences on factors such as whether they have fewer interests in other broadcast facilities, whether they are local organizations, and whether they are part of state-wide networks.
Continue Reading FCC Adopts Changes to Rules for New Noncommercial FM and LPFM Stations – Changing Application Processing Procedures and Holding Periods

As we wrote here, the FCC recently adopted a Notice of Proposed Rulemaking to consider changes to its rules dealing with applications for new noncommercial educational stations and LPFM stations. The FCC plans to publish that Notice of Proposed Rulemaking in the Federal Register tomorrow, making comments due May 20, 2019,

The FCC at its meeting yesterday adopted the two broadcast items that it was expected to consider (see our article on the agenda here) – one agreeing to eliminate the FCC Form 397 EEO Mid-Term Report and a second starting a proceeding to reexamine certain aspects of the criteria used to select the applications to be granted for new Noncommercial Educational radio and television and LPFM stations. We wrote about the draft order to abolish the Form 397 here, and the draft Notice of Proposed Rulemaking on the noncommercial criteria here. We will post the final orders in these proceedings here when the FCC releases them – quite possibly later today (Update, 2/15/2019, 1:50 PM EST – the text of the NCE/LPFM NPRM is now available here; Update 2:30 PM EST – the text of the order that will eliminate the Form 397 is now available here).

The elimination of the Form 397 does not become effective immediately as it still needs to be published in the Federal Register and undergo Paperwork Reduction Act review. So TV stations in the northeast, who are due to file their mid-term reports in the coming months, will continue to have this obligation. The change will have no practical effect for more than 4 years, until the first mid-term after the upcoming license renewal cycle hits in June 2023 (see our article here on the start of the radio license renewal cycle in June 2019). The elimination of this report also does not have any substantive effect on the obligations of full-power broadcasters who are part of employment units with 5 or more full-time employees to widely dissemination information about their job openings and to engage in community outreach efforts (even if they have no job openings) to educate the public about employment opportunities in broadcasting and to train existing employees for more advanced positions. So this really is just the elimination of a paperwork burden.
Continue Reading FCC Adopts Order to Eliminate the EEO Mid-Term Report and Starts Rulemaking Proceeding to Review Proceedings on Grants of New Noncommercial and LPFM Stations

The government shutdown continues to create a confusing situation for government agencies faced with statutory obligations that are difficult to honor without a working federal bureaucracy. The FCC by law is required to hold a monthly public meeting but, when the bulk of its employees are furloughed, it is difficult to meaningfully adhere to that

With the filing window for new noncommercial FM radio stations opening this coming week (see our summary of the process, here), some potential applicants may be wondering who qualifies as an established local organization entitled to points in the comparative analysis that takes place if applications that are mutually exclusive (both cannot be granted without creating prohibited interference) are filed during the window.  In a decision released this past week, the FCC clarified the rules as to what constitutes a local applicant – holding that simply having a mailing address for a headquarters in the proposed station’s service area is not sufficient.

In this case, an applicant claimed to have an established local presence necessary to qualify for points as a local applicant based on its "headquarters" which it said had been located within 25 miles of the proposed city of license for two years prior to the relevant date for evaluating the applicant’s comparative attributes, as required by the FCC’s rules.  However, when a competing applicant visited the office building in which this supposed headquarters was located, there was no indication in the building directory or on any signs on any door in the building that the organization was located there, and no building personnel had any familiarity with the organization.  The applicant justified its claimed local credit by claiming that the "headquarters" was an office at the specified location that housed a number of businesses and organizations with which one of its Board members was affiliated, and that all of those businesses could not be listed on signage or on the building directory.  The Commission found that the mere presence of an office was insufficient to qualify for credit, citing the Order adopting the NCE point system which said that the headquarters must be the organization’s principal place of business or the principal residence of one of its members, and not just a post office box, lawyer’s office, branch office or vacation home.  To qualify for points as an established local organization, the applicant must have activities and familiarity with the local service area that will permit it to "hit the ground running" in serving the public.


Continue Reading Who is a Local Applicant for an NCE Station?