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FCC Enforcement Monitor—The Government Shutdown Edition
Pillsbury’s communications lawyers have published the FCC Enforcement Monitor monthly since 1999 to inform our clients of notable FCC enforcement actions against FCC license holders and others. This month’s issue is a special edition:
FCC Enforcement Monitor—The Government Shutdown Edition
While shutdowns of the federal government have become depressingly common, the FCC has generally been less affected than most government agencies because it is not funded by taxpayer dollars but by regulatory fees paid by broadcasters and others regulated by the FCC. However, because the FCC collects those fees in arrears—at the end of the fiscal year they fund rather than the beginning—the FCC must borrow operating funds from the federal government to operate and then repay that debt when regulatory fees are collected at the end of the fiscal year. That is the reason the FCC is never able to extend its regulatory fee collection deadline beyond September 30, the last day of the federal fiscal year.
Because of timing differences and the fact that the FCC collects more in fees in a typical year than its actual operating costs, it has often been able to continue operating during a government shutdown, sometimes throughout the entire shutdown if its funds are ample and the shutdown short. It was therefore a bit surprising when the FCC deviated from that practice during this government shutdown and not only shut down immediately, but took offline many of its online systems that had remained available in prior government shutdowns.
While many FCC licensees can operate for quite a while without needing to file an electronic application or report with the Commission, they far more frequently must rely on the public-facing informational websites of the FCC that were shut down this time. As a result, the shutdown has deprived broadcasters and others of even routine historical or technical information needed to prepare reports and continue operations, even if those reports can’t be filed until the government reopens.
This has led to what has been one of the more abrupt, disruptive, and longest FCC shutdowns in history. A side effect of that, which some might consider a silver lining, is that there have been few FCC enforcement actions in the past month on which to report. So instead of the normal description of recent enforcement actions, we are going to use this edition to report on shutdown-related information that will potentially affect future regulatory obligations and enforcement actions. In particular, broadcasters and other licensees should remember that most regulatory obligations continue in effect despite the shutdown and temporary unavailability of key FCC websites. As a result, unlike the base jumpers now parachuting from El Capitan with no park rangers in sight, FCC licensees must toe the line, even in the many instances where the FCC shutdown has made rule compliance even more difficult.
Political File Obligations Continue Even Though the Online Public Inspection File Is Down
The FCC’s Online Public Inspection File (OPIF) system was one of the many FCC websites taken offline during this shutdown. Since the Political File is part of the OPIF database, it is also offline. However, the rules requiring stations to keep their Political File up to date remain in effect. Broadcast stations, as well as cable, DBS, and SDARS operators, must continue to document all requests for the purchase of ad time by legally qualified candidates and issue advertisers. Since that can’t be done in the FCC’s Political File database, it must now either be done online (for example, on a station’s website) or, for broadcasters, in paper or electronic form at an “accessible location” in the station’s community of license during normal business hours. Continue reading →


