transition progress report

With the summer winding down, you can expect that come September, like everywhere else, Washington will leap back to life and the government will try to accomplish what they can before the end of the year. That will no doubt mean some regulatory actions (and potentially court actions and legislative actions) affecting broadcasters this Fall, though what they are remains to be seen. In the meantime, there is plenty to keep broadcasters busy. While September is one of those months in which there are few of the normally recurring filing deadlines (no EEO reports, renewal filings or quarterly reports need to be submitted during the month), there is one big deadline that no commercial broadcaster should forget – the filing of annual regulatory fees.

We understand that there is an order circulating at the FCC right now to set the final amount of the regulatory fees for the year. As these fees must be paid before October 1 when the government’s new fiscal year begins, we can expect that order shortly, with fees due at some point in September. As the Commission’s Notice of Proposed Rulemaking proposed significant unexplained increases in the fees paid by radio, and a change to the methodology used to compete TV fees, moving from a DMA-based fee to one calculated based on an individual station’s predicted coverage (which had the effect of raising some fees, especially for high-powered VHF stations, while lowering others), a number of broadcasters and the NAB complained about those proposals. Watch for the FCC’s decision in the coming days to see how it addresses these complaints about the proposed fees, and to see when the fees will be due.
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July is an important month for regulatory filings – even though it is one of those months with no FCC submissions tied to any license renewal dates. Instead, quarterly obligations arise this month, the most important of which will have an impact in the ongoing license renewal cycle that began in June (see last month’s update on regulatory dates, here).  Even though there are no renewal filing deadlines this month, radio stations in Maryland, Virginia, West Virginia and DC must continue their on-air post-filing announcements on the 1st and 16th of the month.  On these same days, pre-filing announcements must be run by radio stations in North and South Carolina, who file their renewals by August 1.  Stations in Florida and Puerto Rico, who file on October 1, should be prepared to start their pre-filing announcements on August 1.  See our article here on pre-filing announcements.

Perhaps the most important date this month is July 10, when all full power AM, FM, Class A TV and full power TV stations must place their quarterly issues/programs lists in their online public inspection files.  The issues/programs list should include details of important issues affecting a station’s community, and the station’s programming aired during April, May, and June that addressed those issues.  The list should include the time, date, duration and title of each program, along with a brief description of each program and how that program relates to a relevant community issue.  We have written many times about the importance of these lists and the fact that the FCC will likely be reviewing online public files for their existence and completeness during the license renewal cycle – and imposing fines on stations that do not have a complete set of these lists for the entire license renewal period (see, for instance, our articles here, here and here).  So be sure to get these important documents – the only official documents that the FCC requires to show how a station has met its overall obligation to serve the public interest – into your online public file by July 10. 
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April brings with it a milestone – as it is the end of the first quarter since all radio stations have had to have their online public inspection file “live” so that anyone, anywhere, can view a station’s compliance with rules that previously could only be judged by going to the station and reviewing the paper public file. April 10, in particular, is important, as it is when Quarterly Issues Programs Lists, summarizing the most important issues facing the community which the broadcaster serves and the programs that the broadcaster aired to address those issues, must be in the online public file for all full-power radio and TV stations. We wrote about the importance of these sometimes overlooked documents here, as these are the only FCC-mandated documents that reflect how a station has served the needs and interests of its community. We have also noted that, in the past license renewal cycle, missing Quarterly Issues Programs lists were the source of the most fines issued to broadcasters. Now that compliance can be judged at any time by the FCC, their importance is only magnified. So be sure that you get these documents into your online public file by April 10.

EEO Public Inspection File Reports, summarizing a station’s employment record for the prior year, are also to be uploaded to a station’s online public file. For radio and TV stations in Delaware, Indiana, Kentucky, Pennsylvania, Tennessee, and Texas, these reports need to be completed and included in the public file by April 1 by all stations that are part of employment units with 5 or more full-time (30 hours per week) employees. In addition, radio stations in employment units with 11 or more full-time employees in Delaware and Pennsylvania, and TV stations in Texas with 5 or more full-time employees, also need to file EEO Mid-Term Reports, commonly referred to as FCC Form 397 applications. While the FCC is considering the abolition of the Mid-Term Report (see our article here), the obligation is still in place so, for now, stations must comply.
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The FCC yesterday issued a Public Notice (available here) reminding all TV stations (including Class A TV stations) that are changing channels as a result of the TV incentive auction, including those receiving compensation from auction payments for moving from UHF to VHF channels, that they must file their first quarterly Transition Progress