CommLawCenter

Posted June 5, 2013

By Paul A. Cicelski and Richard R. Zaragoza

Last month, the FCC issued its latest annual Notice of Proposed Rulemaking (NPRM) as well as a Further Notice of Proposed Rulemaking (FNPRM) containing regulatory fee proposals for Fiscal Year (FY) 2013. Those who wish to file comments on the FCC's proposed fees must do so by June 19, 2013, with reply comments due by June 26, 2013. The NPRM proposes to collect just under $340 million in regulatory fees for FY 2013.

The FCC indicates that this year's Congressional budget sequester reduced FCC salaries and expenditures by $17 million but that the sequester does not impact the collection of regulatory fees. According to the NPRM, this is because the sequester does not change the amount Congress required the FCC to collect in the FY 2012 appropriation (and continued in effect in FY 2013 by virtue of the Further Continuing Appropriations Act in 2013).

The NPRM seeks comments on adoption and implementation of proposals to reallocate the Agency's regulatory fees based on the matters actually worked on by current FCC full time employees (FTEs) for FY 2013 to more accurately assess the costs of providing regulatory services to various industry sectors and to account for changes in the wireless and wireline industries in recent years. Understanding that a modification of its current fee allocation method based on FTE workload will result in significantly higher fees for some fee categories, the NPRM proposes to potentially cap rate increases at 7.5% for FY 2013.

The FCC's NPRM also asks for comment on the following:

1. Combining Interstate Telecommunications Service Providers (ITSPs) and wireless telecommunications services into one regulatory fee category and using revenues as the basis for calculating the resulting regulatory fees;
2. Using revenues to calculate regulatory fees for other industries that now use subscribers as the basis for regulatory fee calculations, such as the cable industry;
3. Consolidating UHF and VHF television stations into one regulatory fee category;
4. Proposing a regulatory fee for Internet Protocol TV (IPTV) equivalent to cable regulatory fees;
5. Alleviating large fluctuations in the fee rate for Multiyear Wireless Services; and
6. Determining whether the Commission should modify its methodology for collecting regulatory fees from those in declining industries (e.g., CMRS Messaging).

Posted March 26, 2013

By Scott R. Flick and Lauren Lynch Flick

At the end of every quarter, TV stations across the land must electronically file with the FCC a Form 398--The Children's Television Programming Report. However, stations attempting to do that filing for the first quarter of 2013 are discovering that the FCC's online filing system for those forms ends with the fourth quarter of 2012. As a result, it is preventing many TV stations from preparing their electronic report for the first quarter of 2013, rejecting all efforts to select "First Quarter 2013" as the report to be filed.

At first, it appeared that the FCC had bought into the "Mayan Prophecy" that the world was ending in December 2012, marking the end of the Mayan (and perhaps the FCC's) calendar. And, had the world actually ended in 2012, filing a Form 398 covering the first quarter of 2013 would have indeed ranked low on most broadcasters' "to do" lists. However, with 2013 well under way, TV stations are now flummoxed as to how to get the FCC's electronic filing system to allow the preparation and filing of a first quarter 2013 kidvid report.

Fortunately, there is an answer, but it requires a little background. We reported in a 2010 KidVid Advisory that the FCC had suddenly begun requiring stations to enter their FCC Registration Number and password as the final step before permitting a Form 398 to be filed. As it turned out, this was apparently the first step in creating a new FCC Form 398 filing system.

In July 2012, the FCC released what it termed an "alternate" link for accessing the Form 398 filing system and updated its user manual to indicate that the web address for filing the form is the alternate link. However, the FCC's main Children's Television Programming page on the Internet continues to show that the original link is the one to use for filing a Form 398, and until this quarter, that original link has continued to work correctly. Of course, most TV stations just have the original link bookmarked, and have no reason to visit the FCC's website/user manual to see if the filing procedures have been changed. Adding to the confusion is the fact that following the original link does not generate a warning or error message, but takes you to the same filing page stations have been using for years. It is only when a station tries to create a report for first quarter 2013 that a problem arises.

As a result, the "alternate" link is not just an alternate any more, and must be used to file all post-2012 kidvid reports. So, from here on out, use this link for filing your kidvid reports: http://licensing.fcc.gov/KidVidNew/public/filing/submit_login.faces

Note also that, at the new link, you will have to provide your call sign, Facility ID, FCC Registration Number and Password to even be able to log into the system. This is all information you previously needed to file a Form 398, but you supplied it at the end of the filing process. Now, you can't even get started without it. For TV stations that have been banging their heads against the wall trying to figure out why they can't prepare, much less file, their Form 398, using the alternate link should solve that problem. It may be a small problem compared to the end of the world, but then the Mayans never had to deal with online filing.

Posted March 20, 2013

By Scott R. Flick

While in the works for a while, today's formal announcement by FCC Commissioner McDowell that he will be departing the FCC leaves a hole in the FCC's ranks that will be difficult to fill. In many regards, Commissioner McDowell was a throwback to an earlier time, both at the FCC and in Washington, in that his tenure was distinguished not just by his congenial nature, but by an abiding adherence to his regulatory principles, rather than to reaching a particular result. While I suspect he might bristle at being described as a "rational regulator", preferring instead to be known as a "devoted deregulator", Commissioner McDowell represented a common-sense approach to the communications industry and the business of regulating it.

Since the job of a lawyer is to obtain for a client the best result legally possible, you would think that lawyers would be big fans of the "predictable vote"--the commissioner whose policy positions are so embedded that there is little doubt as to where they will stand on any particular issue. And of course, if three of the five commissioners are on your side of an issue, that's a pretty warm and fuzzy place to be. The problem, however, is that for every time three of the five commissioners support your position, there will be a time when three of the five do not.

For that reason, an experienced lawyer will always prefer an inquisitive and open-minded regulator over an ideologue, even when it is an ideologue that agrees with you (today). While the independent-minded regulator will make you work to persuade them each and every time, the opportunity to persuade them is never foreclosed. If you fail to persuade them that your cause is just, then the failure is yours, and not just the result of an agency formalizing a preordained result.

Over the years, the FCC has been blessed with a number of commissioners that have been particularly good at compartmentalizing natural biases, and giving the parties before them a full and fair opportunity to make their case. Probably not coincidentally, many of these same commissioners have had both a healthy sense of humor and humility, putting those around them at ease and creating an environment conducive to an open and lively discussion of the issues. A final characteristic found among this select group--and helpful to anyone in Washington--is the ability to separate the advocate from the issue, recognizing that just because you disagree with the argument that the advocate must make today on behalf of a client doesn't diminish the advocate who, like the commissioner, is just trying to do their job to the best of their ability, and will have to make a different argument on behalf of a different client tomorrow.

Unfortunately, these characteristics are rarely those that will get you nominated by a President, or see you through a partisan confirmation process, so commissioners with all of these characteristics will inevitably tend to be the exception rather than the rule. Because of this, Commissioner McDowell will be missed by many who work at, and with, the FCC. In a town where some individuals have countdown calendars marking the number of days remaining in a particular government official's tenure, it is perhaps the ultimate backhanded Washington compliment that the most arresting part of Commissioner McDowell's departure announcement was where it noted he had been at the FCC for "nearly seven years." It's hard to believe it has been that long.

Posted January 3, 2013

By Scott R. Flick

Earlier today, the FCC released a Sixth Further Notice of Proposed Rulemaking relating to its biennial broadcast ownership report filing requirements, reigniting a controversy over privacy, broadcast investment, and indeed, the very purpose of the reports.

In 2009, the FCC revamped its Form 323, the Commercial Broadcast Station Ownership Report, somewhat to address data collection shortcomings identified by the U.S. Government Accounting Office, but mostly to try to make the information more standardized and transparent for academic researchers wishing to generate industry-wide ownership statistics, particularly with regard to minority and female ownership. Unfortunately, the FCC's initial effort to revise the form seemed to have focused on trying to create a form that researchers would applaud, rather than on the "user experience" of those required to fill it out. The result was an awkward effort at forcing complex ownership information into highly redundant machine-readable spreadsheet formats.

Causing particular consternation, however, was a new requirement that every officer, director and shareholder mentioned in those reports have a unique FCC-issued Federal Registration Number (FRN). Because the FCC wants researchers to be able to track the race, ethnicity and gender of each individual connected with a broadcast station, it requires that those registering to obtain an FRN provide either a Taxpayer Identification Number (TIN), or a Social Security Number (SSN). This, according to the FCC, is necessary to allow it to differentiate between individuals that may have similar names and addresses.

Not surprisingly, this requirement met with fierce opposition from numerous groups, including: (1) those who have heard the admonition of government and others to never reveal your SSN to anyone or risk identity theft; (2) broadcasters, who found less than thrilling the experience of badgering their shareholders to either hand over their SSN or take the time to apply for and deliver the FRN themselves; (iii) broadcast lawyers, trying to get ownership reports on file by the deadline despite never hearing back from a significant percentage of those asked to cooperate to provide individual FRNs; and (iv) the investor community, which is not fond of the idea of having to hand over personal information because an individual chose to buy shares of a broadcast company rather than a movie studio.

After fierce opposition and various failed efforts to get the FCC to eliminate the requirement or at least create an alternate method of obtaining an FRN that didn't require an SSN or TIN, the FCC had a change of heart when required by the U.S. Court of Appeals for the DC Circuit to explain itself (you can read Paul Cicelski's discussion of that response here). The FCC defended the new ownership report filing requirements by telling the court that no one would be forced to hand over their SSN or TIN, as it was going to permit broadcasters to apply for a Special Use FRN (SUFRN, one of the most descriptive acronyms you will find) in cases where a party refuses to allow use of its SSN/TIN. In light of this representation, the court declined to intervene, and the FCC proceeded with implementation of the new ownership report form and requirements.

With the availability of SUFRNs and various other changes to the ownership report form and filing system, the FCC was finally able to make the oft-extended filing deadline stick, with commercial broadcasters filing their November 1, 2009 ownership reports by a July 8, 2010 deadline. However, the effort at making the data more accessible for researchers ended up making the form very burdensome for broadcasters required to complete and submit the reports. The biggest issue is structural--requiring the submission of the exact same information over and over in a filing system never lauded for its user-friendliness. During the numerous extensions of the filing deadline, the FCC did incorporate some features like copy and paste to lessen the burden of creating duplicative reports, but no tech feature can overcome the burden created by requiring the filing of the exact same ownership information over and over again for each station in a group rather than just reporting the ownership of that group (once) and the stations that are in it. Because of this, even a relatively small broadcast group can find itself filing well over a hundred ownership report forms.

The irony is that even media researchers--the very group for which this unwieldy reporting system was created--have begun to complain that the sheer volume of filings makes it difficult to sort through the mass of repetitive data. Many communications lawyers seem to agree, finding the "old" ownership reports far more useful in understanding a station's ownership than the current edition.

Still, broadcasters and the FCC seemed to have reached a detente over the reports, with broadcasters quietly grumbling to themselves about the mind-numbing repetitiveness of drafting and filing the reports, but (having seen in the earlier iterations of the "new" report) knowing how much worse it could be. That detente may have ended today when the FCC released the Sixth Further Notice of Proposed Rulemaking, which tentatively concludes that the need to uniquely identify each person connected with a broadcast station is so strong that it must end the availability of SUFRNs and require that all reported individuals get an FRN based upon their SSN or TIN.

While the FCC's conclusions are "tentative", and it requests comment on these and many other questions relating to the ownership report, you can feel the collective chill go down broadcasters' spines as the FCC proceeds to suggest that it could fine individuals who fail to provides an SSN/TIN-based FRN, and queries whether broadcasters should be required to warn their shareholders of that. Telling shareholders or potential shareholders that they face fines for electing to invest their money in broadcasting is not exactly the best way to attract investment to broadcasting, including investment by the minority and female investors the FCC so clearly wants.

But it is that last issue that raises the most curious point of all: to get minority and female ownership information, the FCC seeks to implement an awkward, intrusive, burdensome, privacy-insensitive ownership reporting regime premised on the need for both massive ownership filings and the tracking of individuals by their SSN to determine minority and female ownership trends in the industry. Wouldn't it be far simpler, less intrusive, and less burdensome to just ask broadcasters to provide in their ownership reports (or elsewhere) aggregate data on their minority and female officers, directors, and shareholders? Researchers could then just utilize that data to create industry totals rather than having to wade through mountains of unrelated ownership data to derive it themselves.

Instead of this simplified approach, the FCC seems intent upon using the clumsy mechanism of ownership reports to assess minority and female representation in the industry, stating in the Sixth Further Notice of Proposed Rulemaking that "Unlike many of our filing obligations, the fundamental objective of the biennial Form 323 filing requirement is to track trends in media ownership by individuals with particular racial, ethnic, and gender characteristics." For those of us who have been in the industry for quite some time, that claim is surprising, as the very first sentence of Section 73.3615, the FCC rule that governs the filing of ownership reports, states: "The Ownership Report for Commercial Broadcast Stations (FCC Form 323) must be electronically filed every two years by each licensee of a commercial AM, FM, or TV broadcast station (a "Licensee"); and each entity that holds an interest in the licensee that is attributable for purposes of determining compliance with the Commission's multiple ownership rules."

In attempting to convert a reporting obligation designed to ensure multiple ownership rule compliance into an academic research tool on minority and female broadcast ownership, the FCC undermines both goals. Broadcasters have routinely provided the minority and female ownership data the FCC seeks without fuss, and can hardly be faulted for wishing to do so in a straightforward manner that: (a) doesn't require unnecessarily complex and redundant filings; and (b) doesn't require them to badger their shareholders for private information while threatening their shareholders with federal fines for failing to comply. Rather than "doubling down" on a flawed approach, perhaps it is time for the FCC to step back and reassess the most efficient way of obtaining the desired information--more efficient for broadcasters, more efficient for the FCC, and more efficient for media researchers.

Posted October 4, 2012

By Tony Lin

The FCC has initiated a rulemaking proceeding seeking comments on a comprehensive review of its satellite and earth station licensing and operating rules. The nearly 100-page Notice of Proposed Rulemaking (NPRM) is the FCC's first broad reexamination of its Part 25 rules in over fifteen years. Among other items, the FCC's proposed revisions include:

• Focusing the rules on addressing interference issues and removing unnecessary Commission oversight and regulation of technical decisions.
• Increasing the number of earth station applications eligible for routine and streamlined processing.
• Removing unnecessary reporting rules and consolidating remaining requirements for annual reporting, while improving reporting of emergency contacts.
• Providing greater flexibility to earth station applicants in verifying antenna performance.
• Consolidating and clarifying several of the milestone requirements for space stations.
• Codifying the FCC practice of granting a single earth station license covering multiple antennas located in close proximity to each other.
• Updating, improving, and consolidating definitions and technical terms used throughout Part 25.

With these proposed changes, the FCC hopes to remove administrative burdens on stakeholders and FCC staff, expedite its licensing process, and to facilitate satellite and earth station operations. The comment filing deadlines have not yet been set, but will occur 45 days after the FCC's rulemaking order is published in the Federal Register. Parties interested in commenting on the FCC's proposals, or wishing to provide alternative proposals for the FCC to consider, will want to begin gearing up for this proceeding by talking these issues through with counsel to determine what to propose, and how best to present it to the FCC.

Posted August 6, 2012

By Lauren Lynch Flick and Paul A. Cicelski

On Thursday, the much anticipated Online Public Inspection File for television stations launched more or less successfully. To complete the task in the short time given them, the FCC staff put forth an Olympic effect, and while they were subject to some point deductions for a few stumbles in the regulatory gymnastics involved, they largely "stuck the dismount" as the system went live.

To its credit, the FCC clearly listened to the many voicemails and emails sent to FCC staff, as well as the comments and questions raised during the FCC's online demonstrations prior to launch. Some potentially nasty pitfalls for stations were ironed out via the FAQs, and the system will hopefully continue to be refined in the weeks and months ahead.

In the meantime, here is what stations need to do now that the system is operational:

1. Be sure you can log in. The FCC's staff reports that there were a considerable number of stations that had lost or forgotten their FRN (Federal Registration Number) and password or otherwise had trouble with the log in process. The FRN has become an all-access pass to a station's records with the FCC and anyone who has it can file applications on the station's behalf in any number of FCC filing systems. The potential for mischief that the FRN and password presents is worthy of another blog post, but for now, know that stations that have used multiple FRNs and passwords may find it hard to get access to their online public inspection files and need the staff's assistance in straightening the problem out.

2. Input your station address. On the Authorizations page and again on the Letters and Emails From the Public page, stations need to fill in the station's main studio address, telephone number and email contact information. Stations should also verify that their closed captioning contact is listed correctly.

3. Cross-reference the online public file on the station's home page. Stations that have websites must include a link on their home page to their online public inspection file and provide the public with contact information for a station employee that can assist the disabled in accessing the public file.

4. Remove out of date documents automatically uploaded by the FCC. Since the FCC simply linked its CDBS public view to the new online public files, there may be numerous items that can safely be discarded as no longer relevant. The FCC did not do this automatically because the retention periods for the various categories of documents that seem straightforward at first blush actually vary considerably depending on a station's individual circumstances. The FCC has given stations enough rope to hang themselves here, so care should be taken before documents are removed. Nevertheless, for most stations, a lot of material is being put out there that need not be.

5. Check the station's Section 73.1212(e) and BCRA (Bipartisan Campaign Reform Act) folders. Chances are good that confusion has surrounded your station's 73.1212(e) folder for years, with the result that many stations' Section 73.1212(e) folders are empty. Section 73.1212(e) is the rule requiring stations to maintain a list of the executive officers of organizations that buy time to discuss political matters or controversial issues of public importance, and to place that list in the public inspection file. Most stations have treated these types of spots no differently than they do spots purchased by candidates for elective office. As a result, often when we visit a station's public file, we find neatly labeled folders for each candidate and each issue in the same section of the file cabinet and an empty folder labeled "Section 73.1212(e) Sponsorship Identification" at the very end of the drawer. When BCRA was implemented (requiring stations to maintain more detailed information about third-party political and issue ad buys involving controversial national issues), stations simply labeled more folders and added the BCRA materials to the political file right next to the materials on candidate ads. In addition, many stations found it difficult to distinguish between controversial national issues versus controversial state or local issues, and simply collected and maintained the same disclosure information for all ads that seemed "political" in nature, even if placing that information in the file was not actually required.

Technically (and here's where we separate the real communications lawyers from people who have interesting lives), the paperwork kept for non-BCRA issue ads was never part of a station's "political file", and the BCRA paperwork, which is nowhere mentioned in either the FCC's political or public file rules, is part of the political file. This distinction could have meant that stations that are not network affiliates located in the Top 50 markets would have been exempt from uploading candidate and BCRA paperwork until July 2014, but would still have to upload state and local issue ad paperwork immediately. Fortunately, the FCC appears to have sidestepped this problem by including in its FAQs a statement acknowledging that, because many stations simply lump all these "political" documents together, they can treat them all as part of the "political file" and only start uploading them in July 2014 (unless they are a Big 4 network affiliate in a Top 50 market).

6. Decide when to start uploading the station's pre-August 2 documents. The FCC is giving stations six months to upload their required pre-August 2 documents to the website. While the original Report and Order only gave stations five months from the rule's effective date to get this done, which would make final compliance due over the New Year's holiday, the FCC through its FAQs and its staff's advice is granting stations until February 2, 2013 to finish the upload process. Given the continuous "Recent Station History" feed on the FCC's website notifying the public of the most recent filings, however, stations might want to time their uploading activities to times when other filings are also taking place (i.e, October 1 EEO Public File Reports or October 10 Quarterly Issues/Programs Lists). That way, their recently filed documents are likely to be moved off the front page more quickly.

7. Stations airing pre- or post-filing license renewal announcements must update the language of the spots, while understanding that the public might not appreciate the change. The FCC has now updated the language of the pre- and post-filing license renewal announcements so that, on the one hand, it directs the public to find the station's license renewal application at www.fcc.gov, but, on the other hand, tells the public to come to the station's main studio or to the FCC to learn more about the license renewal process. The problem is that stations which filed their license renewal applications on June 1 or August 1 have been telling their viewing public for months that their applications are available at the main studio. This may lead to some disgruntled visitors to the studio, and stations will also need to think about exactly what they can offer members of the public that show up in their lobbies asking for "further information concerning the FCC's broadcast license renewal process." As a matter of good public relations, stations going through license renewal may want to consider keeping a hard copy of their license renewal application and the FCC's "The Public and Broadcasting" publication available to pacify members of the public who trek to their stations in response to the public notices. Of course, stations that have not transitioned all of the required elements of the public file into the FCC's system must still make the public file available upon request in the traditional manner, and stations will always have to make letters and emails from the public available at the studio even after the transition has ended.

Finally, broadcasters have long noted that visitors to the public file are few and far between. As a result, it has been all too easy for stations to become rusty on the procedures for making the file immediately available to the public, despite the many fines that have been assessed by the FCC for failure to do so. It is likely that visits will become even less frequent now that much of the file will be available online. However, stations must continue to prepare their staffs to receive the public and respond to questions about what is at the station and what is online. The upcoming months will likely be a learning process for all.

Posted July 27, 2012

By Lauren Lynch Flick and Paul A. Cicelski

Late this afternoon, the United States Court of Appeals for the District of Columbia Circuit denied the Stay requested by the National Association of Broadcasters that would have prevented the FCC's new online Public Inspection File posting requirement from becoming effective. As a result, television broadcast stations must be prepared to comply with this new requirement effective on August 2, 2012.

As we have previously reported here, the FCC has moved with great speed to create a new filing system to house television stations' online Public Inspection Files. Until now, broadcasters have had only a brief glimpse of the system they must begin using in less than one week.

This afternoon, the FCC announced that it will hold two public online "screensharing" sessions that will "provide high resolution views of the application screens and cover the material presented during the July 17, 2012 demonstration."

The sessions will occur at 9:00 am on Monday and 4:00 pm on Tuesday. Those interested in viewing the demonstrations must visit the FCC's site in advance and join the teleconference prior to its scheduled start time. While the online demonstration will provide the visuals, the audio portion will be done via the teleconference.

We have prepared an Advisory for clients to help them understand which specific items must be uploaded and what steps they should take to make a successful transition to the online Public Inspection File. The next week promises to be chaotic for TV broadcasters, but we hope the Advisory will help alleviate some of the regulatory pain.

Posted March 1, 2012

By Lauren Lynch Flick and Christine A. Reilly

March 2012

The staggered deadlines for filing Biennial Ownership Reports by noncommercial radio and television stations remain in effect and are tied to each station's respective license renewal filing deadline.

Noncommercial radio stations licensed to communities in Delaware, Indiana, Kentucky, Pennsylvania, and Tennessee, and television stations licensed to communities in Texas must electronically file their Biennial Ownership Reports by April 2, 2012, as the filing deadline of April 1 falls on a Sunday. Licensees must file using FCC Form 323-E, and must place the form as filed in their stations' public inspection files.

In 2009, the FCC issued a Further Notice of Proposed Rulemaking seeking comments on whether the Commission should adopt a single national filing deadline for all noncommercial radio and television broadcast stations like the one that the FCC has established for all commercial radio and television stations. That proceeding remains pending without decision. As a result, noncommercial radio and television stations continue to be required to file their biennial ownership reports every two years by the anniversary date of the station's license renewal application filing.

A PDF version of this article can be found at Biennial Ownership Reports are due by April 2, 2012 for Noncommercial Radio Stations in Delaware, Indiana, Kentucky, Pennsylvania, and Tennessee, and for Noncommercial Television Stations in Texas

Posted March 1, 2012

By Lauren Lynch Flick and Christine A. Reilly

March 2012

Full power commercial and noncommercial radio stations and LPFM stations licensed to communities in Michigan and Ohio must begin airing pre-filing license renewal announcements on April 1, 2012. License renewal applications for these stations, and for in-state FM translator stations, are due by June 1, 2012.

Pre-Filing License Renewal Announcements

Full power commercial and noncommercial radio, LPFM, and FM Translator stations whose communities of license are located in Michigan and Ohio must file their license renewal applications with the FCC by June 1, 2012.

Beginning two months prior to that filing, however, full power commercial and noncommercial radio and LPFM stations must air four pre-filing announcements alerting the public to the upcoming renewal application filing. As a result, these radio stations must air the first pre-filing renewal announcement on April 1. The remaining pre-filing announcements must air once a day on April 16, May 1, and May 16, for a total of four announcements. At least two of these four announcements must air between 7:00 am and 9:00 am and/or 4:00 pm and 6:00 pm.

The text of the pre-filing announcement is as follows:

On [date of last renewal grant], [call letters] was granted a license by the Federal Communications Commission to serve the public interest as a public trustee until October 1, 2012. [Stations that have not received a renewal grant since the filing of their previous renewal application should modify the foregoing to read: "(Call letters) is licensed by the Federal Communications Commission to serve the public interest as a public trustee."]

Our license will expire on October 1, 2012. We must file an application for renewal with the FCC by June 1, 2012. When filed, a copy of this application will be available for public inspection during our regular business hours. It contains information concerning this station's performance during the last eight years [or other period of time covered by the application, if the station's license term was not a standard eight-year license term].

Individuals who wish to advise the FCC of facts relating to our renewal application and to whether this station has operated in the public interest should file comments and petitions with the Commission by September 1, 2012.

Further information concerning the FCC's broadcast license renewal process is available at [address of location of station's public inspection file] or may be obtained from the FCC, Washington, DC 20554.

Posted March 1, 2012

By Lauren Lynch Flick and Christine A. Reilly

March 2012

This Broadcast Station EEO Advisory is directed to radio and television stations licensed to communities in Delaware, Indiana, Kentucky, Pennsylvania, Tennessee and Texas, and highlights the upcoming deadlines for compliance with the FCC's EEO Rule.

Introduction

April 1, 2012 is the deadline for broadcast stations licensed to communities in Delaware, Indiana, Kentucky, Pennsylvania, Tennessee, and Texas to place their Annual EEO Public File Report in their public inspection files and post the report on stations' websites.

Under the FCC's EEO Rule, all radio and television station employment units ("SEUs"), regardless of staff size, must afford equal opportunity to all qualified persons and practice nondiscrimination in employment.

In addition, those SEUs with five or more full-time employees ("Nonexempt SEUs") must also comply with the FCC's three-prong outreach requirements. Specifically, all Nonexempt SEUs must (i) broadly and inclusively disseminate information about every full-time job opening except in exigent circumstances, (ii) send notifications of full-time job vacancies to referral organizations that have requested such notifica¬tion, and (iii) earn a certain minimum number of EEO credits, based on participation in various non-vacancy-specific outreach initiatives ("Menu Options") suggested by the FCC, during each of the two-year segments (four segments total) that comprise a station's eight-year license term. These Menu Option initiatives include, for example, sponsoring job fairs, attending job fairs, and having an internship program.

Nonexempt SEUs must prepare and place their Annual EEO Public File Report in the public inspection files and on the websites of all stations comprising the SEU (if they have a website) by the anniversary date of the filing deadline for that station's FCC license renewal application. The Annual EEO Public File Report summarizes the SEU's EEO activities during the previous 12 months, and the licensee must maintain adequate records to document those activities. Stations must also submit the two most recent Annual EEO Public File Reports at the midpoint of their license terms and with their license renewal applications.

Exempt SEUs - those with fewer than 5 full time employees - do not have to prepare or file Annual or Mid-Term EEO Reports.

For a detailed description of the EEO rule and practical assistance in preparing a compliance plan, broad¬casters should consult "Making It Work: A Broadcaster's Guide to the FCC's Equal Employment Opportunity Rules and Policies" published by the Communications Practice Group. This publication is available at: >http://www.pillsburylaw.com/siteFiles/Publications/CommunicationsAdvisoryMay2011.pdf.

Continue reading "Broadcast Station EEO Advisory"

Posted March 1, 2012

By Lauren Lynch Flick and Christine A. Reilly

March 2012

The next Children's Television Programming Report must be filed with the FCC and placed in stations' local public inspection files by April 10, 2012, reflecting programming aired during the months of January, February, and March 2012.

On Statutory and Regulatory Requirements

As a result of the Children's Television Act of 1990 and the FCC Rules adopted under the Act, full power and Class A television stations are required, among other things, to: (1) limit the amount of commercial matter aired during programs originally produced and broadcast for an audience of children 12 years of age and younger, and (2) air programming responsive to the educational and informational needs of children 16 years of age and younger.

These two obligations, in turn, require broadcasters to comply with two paperwork requirements Specifically, stations must: (1) place in their public inspection file one of four prescribed types of documentation demonstrating compliance with the commercial limits in children's television, and (2) complete FCC Form 398, which requests information regarding the educational and informational programming the station has aired for children 16 years of age and under. Form 398 must be filed electronically with the FCC and placed in the public inspection file. The base forfeiture for noncompliance with the requirements of the FCC's Children's Television Programming Rule is $10,000.

Article continues . . .

Posted March 1, 2012

By Scott R. Flick and Christine A. Reilly

March 2012

The next Quarterly Issues/Programs List ("Quarterly List") must be placed in stations' local inspection files by April 10, 2012, reflecting information for the months of January, February, and March 2012.

Content of the Quarterly List

The FCC requires each broadcast station to air a reasonable amount of programming responsive to significant community needs, issues, and problems as determined by the station. The FCC gives each station the discretion to determine which issues facing the community served by the station are the most significant and how best to respond to them in the station's overall programming.

To demonstrate a station's compliance with this public interest obligation, the FCC requires a station to maintain and place in the public inspection file a Quarterly List reflecting the "station's most significant programming treatment of community issues during the preceding three month period." By its use of the term "most significant," the FCC has noted that stations are not required to list all responsive programming, but only that programming which provided the most significant treatment of the issues identified. Article continues . . .

Posted September 15, 2011

By Lauren Lynch Flick

For those of you who remember the sense of relief you felt as a kid when you forgot to study for a test and later found out that class was cancelled, the FCC is giving you a chance to enjoy that feeling again. Despite the fact that annual regulatory fees were due yesterday, September 14, 2011, the FCC announced late today that the filing deadline is being extended until 11:59 pm ET tomorrow, September 16, 2011.

That may be a relief to many, as this year the FCC did not send out individual notices of the fee filing deadline to licensees, meaning that the number of licensees who forgot to file is likely higher this year than is typically the case. However, that is not the reason for the extension. Those who waited until the last minute to file their fees discovered that the FCC's electronic filing system was struggling under the load. Because of this, the FCC decided to grant the extension to make sure no one can complain that they tried to file on time but were prevented by the system from meeting the filing deadline. In other words, there's no excuse for missing the filing deadline now!

Because regulatory fees paid by check must reach the FCC's lockbox in St. Louis by the deadline, the more practical way of meeting the new deadline is through the use of a credit card for payment. Fees received after the deadline are subject to the automatic 25% late fee.

Posted September 13, 2011

By Scott R. Flick

In the past few days, details have emerged from the White House regarding the funding sources being proposed to cover the cost of the American Jobs Act. In the government's search for cash, it should surprise no one that in addition to broadcast spectrum auction language (which seems to be in every new funding bill these days), spectrum fees are also being proposed. While there is some good news for television broadcasters, who are exempt from the fees in the current draft of the bill, you can never tell if that exemption will survive the rough and tumble legislative process. Radio broadcasters aren't so lucky--no exemption for them.

One trend is clear--the government's growing reliance on fees from broadcasters and other FCC license holders. When I started practicing in the 1980s, the FCC did not generally charge fees. Congress later instructed the FCC to collect a fee for each application or report filed, and to set the size of the fee at an amount that would cover the cost of processing that particular application/report. While there was some grumbling about having to pay the FCC to process reports that the FCC had required be filed in the first place, most understood that the government was not going to surrender this newly-found revenue source.

However, when Congress later required the FCC to also collect annual regulatory fees from spectrum users in amounts sufficient to cover the FCC's total operating budget, spectrum users cried foul. They were already paying a filing fee to have the FCC process their applications, and now were expected to pay a separate annual fee to cover all of the FCC's operating costs (including application processing). This meant that the government was double-dipping--collecting fees under the guise of "covering costs" that in fact exceeded those costs. To his credit, Commissioner McDowell acknowledged this strange situation in 2009, when he urged the FCC to "take another look at why we continue to levy a tax of sorts of allegedly $25 million or so per year on industry, after the Commission has fully funded its operations through regulatory fees. That money goes straight to the Treasury and is not used to fund the agency." Despite the protests, the FCC continues to be required by Congress to collect those fees, which increase every year.

So broadcasters and other spectrum users can be forgiven if they are skeptical of calls for yet one more government fee on their existence. Even if the exemption for television broadcasters stays in the bill, that is limited comfort for TV licensees, since any spectrum fee adopted will almost inevitably creep over to television as Congress continues its search for revenue sources that can be called "fees" rather than "taxes."

Sensitive to these complaints, the White House attempted to bolster its case in a summary of the bill, stating that "it is expected that fees would encourage efficient allocation and use of the radio spectrum, as the opportunity cost of spectrum resources would be reflected to commercial license holders that did not receive authorizations through competitive bidding." This perennial argument, that broadcasters shouldn't complain about any governmentally-imposed burden because "they got their spectrum for free," remains one of the urban legends of Washington. Like most urban legends, however, it has no basis in fact.

Very few current broadcasters "got their spectrum for free." The FCC has been auctioning off broadcast spectrum for over a decade, and broadcast stations that were licensed before that time have typically been sold and resold at "fair market value" many times over the years. As a result, it is a rare broadcaster that currently holds a broadcast license obtained directly from the FCC "for free". Most broadcasters have paid dearly for that license, both in terms of the station purchase price and the public service obligations that come with the license.

Still, fee proponents argue that because the original license holder didn't have to pay the government for the spectrum, the "free" argument still applies, no matter how many times the station has changed hands since then. That argument is eviscerated, however, by a simple analogy. When the United States was settled, the government issued land grants to settlers who "staked a claim" to virgin territory by promising to make productive use of that land (the "Sooners" being one of the better-known examples). Other than the promise to use the land, these settlers did not pay the government for their land grants. The land then passed from generation to generation and from seller to buyer many times in the years since the original grant. However, despite the fact that the original owners "got their land for free", I would wager there are few homeowners among us who would agree that we received "our" land for free, much less accept a governmental fee premised on that assertion.

How spectrum/licenses were originally assigned by the FCC (or its predecessor agency) many years ago bears no more relevance to today's broadcaster than 19th century land grants relate to the modern homeowner. In both cases, the original owner lived up to its commitment to the government to make productive use of the asset, and was therefore permitted to eventually sell its claim to others. To assert that these buyers are somehow suspect beneficiaries of land or spectrum ignores reality. Today's broadcasters are merely the spiritual descendants of a different kind of settler--the pioneers of the airwaves.

Posted August 22, 2011

By Scott R. Flick

The FCC this morning announced a "temporary" freeze on the filing and processing of applications for full power and low power television stations on Channel 51. The freeze was announced in response to a petition filed in March by CTIA - the Wireless Association and the Rural Cellular Association asking the FCC to take steps to "prevent further interference caused by TV broadcast stations on channel 51" to wireless broadband services in the Lower 700 MHz A Block. More specifically, the petition urged the FCC to "(1) revise its rules to prohibit future licensing of TV broadcast stations on channel 51, (2) implement freezes, effective immediately, on the acceptance, processing and grant of applications for new or modified broadcast facilities seeking to operate on channel 51, and (3) accelerate clearance of channel 51 where incumbent channel 51 broadcasters reach voluntary agreements to relocate to an alternate channel."

What is odd about the FCC's announcement, however, is that freezes are normally implemented to "lock down" the engineering database to permit the FCC to analyze various engineering solutions using a stable database. For example, during the DTV transition, the FCC issued numerous freezes as it attempted to engineer a DTV channel plan that would allow each full power station both a digital and an analog channel to operate during the transition. That task would have been much harder if the database had kept changing during that time.

Here, however, the FCC is not freezing Channel 51 applications to give it time to resolve a Channel 51 engineering issue. Instead, it is freezing Channel 51 applications to ostensibly give it time to determine whether to freeze Channel 51 applications. That is a novel use for a freeze, and seems to prejudge the ultimate question of whether the FCC should grant the underlying petition.

Of particular interest is the fact that today's notice goes farther than just a freeze, as it "(1) announces a general freeze, effectively [sic] immediately, on the filing of new applications on channel 51 and the processing of pending applications on channel 51; (2) lifts the existing freeze as applied to, and will accept, petitions for rulemaking filed by full power television stations seeking to relocate from channel 51 pursuant to a voluntary relocation agreement; and (3) opens a 60-day window for parties with pending low power television station applications on channel 51 to amend their applications to request a voluntary channel assignment."

Typically, when the FCC issues a freeze, it is only on the filing of new applications. As a matter of fairness, the FCC will normally process applications already on file when a freeze is announced since such an applicant has already expended its resources to file an application that was fully grantable before the freeze was announced. That makes this freeze unusual, as it freezes even pending applications, and in doing so, pretty much "temporarily" grants the wireless industry's petition.

That last aspect is particularly odd. In contrast to a freeze designed to "lock in" the current engineering situation while options are assessed, the freeze notice does the opposite, specifically encouraging Channel 51 applicants and licensees to amend their applications and modify their facilities to change the current Channel 51 engineering terrain. In other words, it is a freeze that is not designed to lock in the current situation, but to actively change the current situation.

If it wasn't already clear where the FCC is heading, establishing a 60-day "window" for low power applicants to clear off of Channel 51 in response to only a "temporary" freeze would make no sense if the FCC didn't intend the freeze to be permanent. A low power station that fails to file a displacement application during those 60 days could well be deprived of a subsequent opportunity to amend when the FCC adopts a permanent Channel 51 freeze. Otherwise, there would be no point in limiting such applications to a 60-day window. In that regard, the assertion in the freeze notice that the FCC's action is purely procedural and therefore "not subject to the notice and comment and effective date requirements of the Administrative Procedure Act" will be of little comfort to the low power applicant who waits to see what "permanent" action the FCC takes in this proceeding.

While the freeze does leave the FCC staff some wiggle room to grant waivers for modification applications by existing Channel 51 stations where necessary to maintain service to the public (thank you Media Bureau!), it is apparent that the FCC has decided to begin winding down use of Channel 51, even though the wireless entities that bid on the adjacent spectrum knew that they were subject to interference from Channel 51 stations when they bought it.

Broadcasters not affected by this freeze should derive little comfort from that fact. The FCC has made clear its desire to recover 120 MHz of contiguous broadcast spectrum, which means that all channels higher than 30 would disappear. This Channel 51 freeze merely establishes the template for those future FCC actions, and soon the bell could be tolling for far more than just Channel 51.