third party fundraising by noncommercial stations

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July is relatively light on broadcast regulatory dates, but the Quarterly Issues/Programs List deadline on July 10 is one that applies to all full-power broadcasters and Class A TV stations.  As set forth below, there are a few other dates worth noting this coming month – with more to come in August.

July 10 is the deadline by which all full-power television, full-power radio and Class A television stations must upload to their online public inspection files their Quarterly Issues/Program Lists for the second quarter of 2023.  The lists should identify the issues of importance to the station’s community and the programs that the station aired in April, May and June that addressed those issues.  As you finalize your lists, do so carefully and accurately, as they are the only official records of how your station is serving the public and addressing the needs and interests of its community.  See our article here for more on the importance of the Quarterly Issues/Programs list obligation.

July 10 is also the deadline by which noncommercial educational stations must upload to their public inspection files documentation of any on-air fundraising benefitting third parties that interrupted their normal programming from April 1 through June 30, 2023.  This obligation applies to noncommercial educational stations not affiliated with NPR or PBS that conducted such third-party on-air fundraising.  For more information about this requirement, see our article here.  Also on July 10, Class A television stations should upload to their online public file documentation of their continuing eligibility for Class A status during the period from April 1 through June 30, 2023.

Chairwoman Rosenworcel announced that the FCC, at its open meeting on July 20, intends to announce its decision resolving whether it will continue to allow “Franken FM” or “FM6 stations,” (i.e., LPTV stations operating on TV channel 6 with an analog audio service that can be received on FM radios at 87.7 MHz) to provide their existing analog radio service by authorizing it as an “ancillary or supplementary service.”  LPTV operators had asked the FCC to bless the post-conversion operation of an analog audio signal embedded in the digital Channel 6 LPTV station transmissions so that these FM broadcasts can continue, which the FCC has tentatively decided to do with respect to 13 LPTV stations that had provided such service in the past.  For more details on this item, see our blog article here

July 31 is the deadline by which commercial television stations with locally-produced programming whose signals were carried as distant signals by at least one cable or satellite system in 2022 may file royalty claims for compensation with the Copyright Office in Washington, DC.  Cable and satellite systems are obligated to pay these royalties pursuant to their compulsory copyright license to carry distant TV signals on their systems. Stations that do not file claims by the July 31 deadline will not be able to collect royalties for distant carriage of their signals during 2022.  The filing process consists of two-steps: (1) if you did not do so last year, you must register through the Copyright Royalty Boards’s eCRB system and then (2) file your claim electronically through eCRB by July 31, 2023.  

The Commission recently issued a Public Notice announcing that it is taking comments on a Petition for Rulemaking filed by REC Networks in which REC proposes rules to govern a possible future FM translator filing window.  Among REC’s proposals are a limit on applications by any one applicant and limits on the sale of any construction permits that are granted in any new filing window.  Comments on the REC Petition are due on July 26, 2023 and will give the FCC the opportunity to decide whether to further advance these proposals through a formal rulemaking process. 

The FCC has published its All-In Pricing for Cable and Satellite Television Service Notice of Proposed Rulemaking (NPRM).  Comments are due July 31, and replies are due August 29.  The NPRM proposes to require cable operators and direct broadcast satellite (DBS) providers to specify the “all-in” price for video service in their promotional materials and on subscribers’ bills.  Cable operators and DBS providers would be able to complement the aggregate line item with an itemized explanation of the elements that compose that single line item. 

Looking forward to early August, August 1 is the deadline for Radio and Television Station Employment Units in California, Illinois, North Carolina, South Carolina, and Wisconsin with 5 or more full-time employees to upload to their online public inspection file their Annual EEO Public File Report. A station employment unit is a station or cluster of commonly controlled stations serving the same general geographic area having at least one common employee.  For employment units with 5 or more full-time employees, the annual report covers hiring and employment outreach activities for the prior year.  A link to the uploaded report must also be included on the home page of a station’s website, if it has a website. 

For those radio employment units in North Carolina and South Carolina, the Annual EEO Public File Report brings a new requirement, as this is the mid-point of those stations’ renewal term.  As we wrote here, this means that the FCC will conduct its EEO Mid-Term Review of those radio employment units with 11 or more full-time employees.  When radio stations in these states upload their Annual EEO Public File Reports, they must also check a new checkbox in the Settings section of the FCC-hosted public inspection file stating whether or not they have 11 or more full-time employees in their employment unit, so the FCC knows which clusters to review as part of the Mid-Term Review.  All other radio groups will need to complete this step as well prior to their Mid-Term Review.

As always, this list of dates is not exhaustive.  Note, too, that deadlines can change.  Always review these dates with your legal and technical advisors, and note other dates not listed here that may be relevant to your operations. Continue Reading July Regulatory Dates for Broadcasters – Quarterly Issues/Programs Lists, Franken FMs, Copyright Distant Signal Copyright Claims, and More

The new year brings a series of regulatory deadlines in January and a February 1 license renewal deadline that broadcasters should take note of.  As in 2022, the FCC will remain vigilant in making sure that its deadlines are met, so the following items should not be overlooked or left until the last minute.

The…

With regulatory fees due today, September 30, 2022 (extended from September 28 because of the effects of Hurricane Ian and some other technical issues with fee payment by this FCC Public Notice, with the date for waiver requests similarly extended by this Public Notice), it is time to look ahead to October and some of the regulatory dates and deadlines that broadcasters have coming in the month ahead.

October starts with the TV license renewal deadlines for Television, Class A, LPTV, and TV Translator Stations in Alaska, American Samoa, Guam, Hawaii, N. Marianas Islands, Oregon and Washington State.  The deadline for filing is October 3 as the 1st of the month falls on a Saturday, thus extending the deadline to the next business day.  As we have previously advised,  renewal applications must be accompanied by FCC Form 2100, Schedule 396 Broadcast EEO Program Report (except for LPFMs and TV translators).  Stations filing for renewal of their license should make sure that all documents required to be uploaded to the station’s online public file are complete and were uploaded on time.  Note that your Broadcast EEO Program Report must include two years of Annual EEO Public File Reports for FCC review, unless your employment unit employs fewer than five full-time employees.  Be sure to read the instructions for the license renewal application and consult with your advisors if you have questions, especially if you have noticed any discrepancies in your online public file or political file.  Issues with the public file have already led to fines imposed on TV broadcasters during this renewal cycle.
Continue Reading October Regulatory Dates for Broadcasters – Renewals and EEO Obligations, Quarterly Issues Programs Lists, Rulemaking Comments and More

Noncommercial radio stations ignoring their FCC public file obligations should be expecting to enter into consent decrees at license renewal time obligating them to take formal steps to monitor compliance and submit information to the FCC on any issues that arise.  In the last few weeks, we have seen at least four such decrees announced by the FCC (e.g. here, here, and here) imposing such obligations in exchange for the grant of pending renewal applications.  In each consent decree, the FCC notes the hardships imposed by the pandemic, presumably suggesting that, had these been more ordinary times, the licensees would have faced steeper penalties.

The consent decrees themselves resemble the consent decrees entered into between the FCC and commercial broadcasters who have not adequately maintained the documents required to be in the political file that is part of each commercial station’s public inspection file (see our articles here and here).  The four recent consent decrees with the noncommercial broadcasters require that they take the following actions:

  • They must appoint a Compliance Officer – a senior manager who will report to the “Chief Executive Officer” or equivalent of the licensee. The Compliance Officer is responsible for making sure that the licensee observes all public file obligations and all terms of the consent decree.
  • Within 30 days, the licensee must adopt a Compliance Plan that includes:
    • A written Compliance Manual explaining all requirements of the public file rules and is distributed to all employees who deal with any aspect of the rules.
    • A training program must be conducted for all employees on their obligations under the public file rules.
  • A year after the effective date of the Consent Decree, the licensee must submit a Compliance Report to the FCC certifying its compliance with the rules and how it complied.
  • If in any instance, the licensee does not comply with the rules, it must report any instance of noncompliance to the FCC within 10 days of its discovery.

As we noted here in the case of a commercial broadcaster who did not comply with the terms of a consent decree, noncompliance can bring big penalties.
Continue Reading Noncommercial Stations – Don’t Forget Your Public File Obligations – The FCC is Watching!

At its April meeting, the FCC voted to allow noncommercial stations not affiliated with NPR or CPB to raise funds for third-party nonprofit organizations, even where such fundraising appeals interrupted normal programming, as long as the licensee did not devote more than 1% of its yearly airtime to such appeals. We wrote here…

The FCC released the agenda for its April 20th meeting – and it includes three broadcast items.  Two deal with noncommercial broadcasters (undoing the requirement for noncommercial broadcasters to get Social Security Numbers from its board members so that they can acquire an FCC Registration Number for them – see our articles here and here on that issue – and one allowing noncommercial broadcasters to interrupt programming to raise funds for unrelated non-profit organizations).   The third deals with the UHF discount (see our summary of this proposal here).  The third-party fundraising issue has been pending at the FCC for almost 5 years, when the FCC proposed to relax its policy that prohibits noncommercial broadcasters from interrupting normal programming to raise funds for “third-party” nonprofit groups (see our article here on the proposal).  A noncommercial station can raise funds for nonprofit groups during normal program breaks in PSAs or other similar brief announcements, but under current policy, they cannot conduct a telethon or radiothon to raise funds for the Red Cross, a local charity, a religious organization or even for the football team or orchestra at a college or university that owns a noncommercial broadcast station.

The FCC yesterday released its proposed order that would change the current policy.  It would allow a noncommercial station to raise funds for another non-profit entity, but only for 1% of its airtime – about 87 hours a year.  However, this relaxation would be limited to noncommercial stations that do not receive CPB funding, as many PBS and NPR stations opposed the change fearing that they would be deluged by requests for funding from local nonprofits (including, for university licensees, from their licensees themselves for non-station related financial needs).  It was feared that such campaigns could undermine the noncommercial service provided by these stations, and could interfere with the station’s own fundraising.
Continue Reading FCC Proposes to Adopt Rules Allowing Fundraising for Third-Party Nonprofit Organizations By Non-CPB Noncommercial Stations

Hurricane Sandy (or "Superstorm Sandy as it now seems to be called) has resulted in an outpouring of support from broadcasters across the nation, looking for ways to raise funds for those that have been affected by the storm and its aftermath. Noncommercial broadcasters who are interested in joining in the fundraising efforts were aided by…

The FCC has adopted a Notice of Proposed Rulemaking suggesting, with significant limitations, a liberalization of its rules that prohibit noncommercial broadcasters from raising funds for an entity other than the station itself if the fundraising suspends or alters normal programming of the station. As we’ve written before, the FCC prohibits noncommercial broadcasters from raising funds for charities and other non-profit organizations through telethons or other special programming.  The prohibition has been in place for some time, and was reaffirmed by the FCC’s orders in the early 1980s which established the basic rules that still today govern most noncommercial fundraising and sales activities. 

The prohibition on third-party fundraising reflected the Commission’s concern that educational stations are "licensed to provide a noncommercial broadcast service, not to serve as a fund-raising operation for other entities by broadcasting material that is akin to regular advertising."  Doing too much fundraising for these third parties, in the Commission’s view when the rule was adopted, would distract stations from their principal mission of service to the public.   While the Communications Act was changed in the early 1980s to allow noncommercial broadcasters to accept paid promotional spots for nonprofit groups, the FCC did not change the rule on third-party fundraising that disrupts normal programming.  In the NPRM just adopted, the Commission recites that they still believe the justification for the rule to be true, even though noncommercial stations can now run what is essentially paid advertising for nonprofit organizations, as long as those spots are incorporated into the normal programming of the stations. What the Commission now proposes is a limited degree of liberalization of the third-party fundraising prohibition, subject to many conditions set forth below.Continue Reading FCC Proposes to Liberalize Rules Against Noncommercial Stations Fundraising For Third-Party Non-Profit Groups

Three broadcast items are tentatively scheduled for the next FCC meeting, to be held on April 27, according to the tentative agenda released today.  In one expected action, though perhaps moving more quickly than many thought possible, the FCC has indicated that it will adopt an Order in its proceeding requiring TV broadcasters to place and maintain their public files on the Internet.  A second broadcast item will adopt rules for channel sharing by TV broadcasters as part of the plan for incentive auctions to entice TV broadcasters to give up some of their spectrum for wireless broadband use.  Finally, the FCC proposes to adopt a NPRM on whether to amend current policies so as to permit noncommercial broadcasters from interrupting their regular programming to raise funds for organizations other than the station itself.

The first item is to determine whether to require that the broadcasters maintain an Online Public Inspection File, is a controversial issue about which we wrote last week. The proposal for the online file grew out of the FCC’s Future of Media Report (renamed the Report on the Information Needs of Communities when it was released last year, see our summary here).  In that same report, it was suggested that the FCC relax rules applicable to noncommercial broadcasters that limit their on-air fundraising for third-parties, if that fundraising interrupts the normal course of programming.  The Future of Media Report suggests that this restriction be relaxed so that noncommercial broadcasters be able to do block programming from time to time to raise funds for other noncommercial entitiesContinue Reading On the Schedule for the April 27 FCC Meeting: Television Public Interest Obligations, TV Channel Sharing and Third-Party Fundraising by Noncommercial Broadcasters