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The deadline to file the 2021 Annual Children’s Television Programming Report with the FCC is January 30, 2022, reflecting programming aired during the 2021 calendar year.  Note that because this deadline falls on a weekend, this filing may be made on January 31, 2022.  In addition, commercial stations’ documentation of their compliance with the commercial limits in children’s programming during the 2021 calendar year must be placed in their Public Inspection File by January 30, 2022.

Overview

The Children’s Television Act of 1990 requires full power and Class A television stations 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 under, and (2) air programming responsive to the educational and informational needs of children 16 years of age and under.  In addition, stations must comply with paperwork requirements related to these obligations.

In 2019, the FCC adopted a number of changes to its children’s television programming rules.  Substantively, the new rules provide broadcasters with additional flexibility in scheduling educational children’s television programming, and modified some aspects of the definition of “core” educational children’s television programming.  Those portions of the revisions went into effect in 2019.  Procedurally, the new rules eliminated quarterly filing of the commercial limits certifications and the Children’s Television Programming Report in favor of annual filings.  Those revisions went into effect in 2020. As a result, the Children’s Television Programming Report and commercial limits documentation filed in 2022 will be the second year that annual filings are submitted.

Commercial Television Stations

Commercial Limitations

The FCC’s rules require that stations limit the amount of “commercial matter” appearing in programs aimed at children 12 years old and younger to 12 minutes per clock hour on weekdays and 10.5 minutes per clock hour on the weekend.  The definition of commercial matter includes not only commercial spots, but also (i) website addresses displayed during children’s programming and promotional material, unless they comply with a four-part test, (ii) websites that are considered “host-selling” under the Commission’s rules, and (iii) program promos, unless they promote (a) children’s educational/informational programming, or (b) other age-appropriate programming appearing on the same channel.

Licensees must upload supporting documents to the Public Inspection File to demonstrate compliance with these limits on an annual basis by January 30 each year, covering the preceding calendar year.  Documentation to show that the station has been complying with this requirement can be maintained in several different forms.  It must, however, always identify the specific programs that the station believes are subject to the rules, and must list any instances of noncompliance.

Core Programming Requirements

To help stations identify which programs qualify as “educational and informational” for children 16 years of age and under, and determine how much of that programming they must air to demonstrate compliance with the Children’s Television Act, the FCC has adopted a definition of “core” educational and informational programming, as well as three different safe harbor renewal processing guidelines that establish the minimum amount of core programming stations must air to receive a staff-level license renewal grant.  Stations should document all core children’s programming that they air, even where it exceeds the safe harbor minimums, to best present their performance at license renewal time.

Under these rules, the FCC generally defines “core programming” as television programming that has as a significant purpose serving the educational and informational needs of children 16 years old or under and which is aired between 6:00 a.m. and 10:00 p.m.  In addition, commercial stations must also identify each core program by displaying an “E/I” symbol onscreen throughout the program.  Licensees must also provide information identifying each core program they air to publishers of program guides, though they no longer need to indicate a program’s intended age range.

There are three ways to satisfy the Commission’s processing guidelines:

  • Category A1: Stations can meet their obligation by airing at least three hours per week (as averaged over a six-month period) of core programming, all of which is regularly scheduled, weekly, and at least 30 minutes in length.  To satisfy Category A1’s three-hour-per-week minimum, at least two hours must air on the primary stream and up to one hour may air on a multicast stream.
  • Category A2: Stations can meet their obligation by airing at least 156 hours of core programming per year, including at least 26 hours per quarter that is regularly scheduled, weekly, and 30 minutes in length, and up to an additional 52 hours of programming throughout the year that is not provided on a regularly scheduled basis, but is at least 30 minutes in length.  To the extent a station airs more than two hours per week of regularly scheduled core programming, it has the flexibility to air such additional regularly scheduled programming on a multicast stream.  However, all non-regularly scheduled programming aired to satisfy the Category A2 minimum must air on the primary stream.
  • Category B: Stations can meet their obligation by airing at least 156 hours of core programming per year, including at least 26 hours per quarter that is regularly scheduled, weekly, and 30 minutes in length, and up to an additional 52 hours of programming throughout the year that is not provided on a regularly scheduled basis, and may be less than 30 minutes in length, such as PSAs and interstitials. To the extent a station airs more than two hours per week of regularly scheduled core programming, it has the flexibility to air such additional regularly scheduled programming on a multicast stream.  However, all non-regularly scheduled programming aired to satisfy the Category B minimum must air on the primary stream.

These processing guidelines, as well as other changes the Commission introduced regarding rebroadcasts and the rescheduling of preempted programming, provide stations greater flexibility in scheduling children’s television programming.  However, they require that stations understand these requirements and document them accurately in their Annual Children’s Television Programming Report filings.

Filing the Children’s Television Programming Report

The next Children’s Television Programming Report must be filed electronically with the FCC by January 31, 2022 (because, as noted above, the actual January 30 due date falls on a weekend).  Broadcasters must file their Children’s Television Programming Reports via the Licensing and Management System (LMS), accessible at https://enterpriseefiling.fcc.gov/dataentry/login.html.  Once filed, the FCC’s electronic filing system will automatically place the Children’s Television Programming Report into the station’s Public Inspection File.  However, each station should confirm that has occurred to ensure that its Public Inspection File is complete.

Noncommercial Educational Television Stations

Because noncommercial educational television stations are precluded from airing commercials, the commercial limitation rules do not apply to them.  Accordingly, noncommercial television stations have no obligation to place commercial limits documentation in their Public Inspection File.  Similarly, though noncommercial stations are required to air programming responsive to the educational and informational needs of children 16 years of age and under, they do not need to complete Children’s Television Programming Reports.  They must, however, maintain records of their own in the event their performance is challenged at license renewal time.  In the face of such a challenge, a noncommercial station will be required to have documentation available that demonstrates its efforts to meet the needs of children.

Please do not hesitate to contact the attorneys in the Communications Practice for specific advice on compliance with these rules or for assistance in preparing any of the above documentation.

A PDF version of this article can be found at Meeting Your Annual Children’s Television Programming Reporting Obligations.

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Pillsbury’s communications lawyers have published 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 includes:

  • FCC Proposes $20,000 Fine for Broadcast of False EAS Alert Tone
  • Mississippi Television Station Fined $18,000 for Late Issues/Programs Lists and Failure to Disclose Violation
  • Illinois High School Agrees to Consent Decree for Violations Relating to Periods of Silence, Late Issues/Programs Lists, and Failing to File a Biennial Ownership Report and EEO Program Report

Nevada Radio Licensee Receives Proposed Fine of $20,000 for Transmitting False EAS Tone

The FCC issued a Notice of Apparent Liability for Forfeiture (NAL) to a radio station licensee for violating the Commission’s Emergency Alert System (EAS) rules—specifically Section 11.45 of the Commission’s Rules, which prohibits the transmission of false or deceptive EAS tones.

The EAS is a nationwide public warning system designed to alert the public in an emergency. In order to maintain the effectiveness of such emergency alerts, EAS tones may only be aired in specific circumstances, such as an actual emergency, an authorized test, or a public service announcement educating the public about EAS. Section 11.45 strictly prohibits airing an EAS tone, or simulations thereof, except in connection with of one of these permitted uses.

In October 2020, the FCC received a complaint alleging that a Nevada radio station had transmitted EAS tones during a talk show that were not connected to an actual emergency. In January 2021, the FCC’s Enforcement Bureau sent a Letter of Inquiry to the broadcaster seeking information regarding the potential violation.

The broadcaster responded that the tones had indeed aired, and included an audio recording of the program in question. The broadcaster indicated it did not review the program containing the EAS tones prior to broadcast as the program was part of a programming block purchased by the talk show’s host.  It noted that the program containing the EAS tones was also simulcast on the digital subchannel of another co-owned radio station and on an FM translator.

Based on the broadcaster’s admissions and the FCC’s review of the audio recording, the Commission found that the broadcaster willfully violated Section 11.45 of the Commission’s Rules. The FCC also noted that while the base fine for violations of the EAS rule is $8,000, it looks at the particular facts of each case and may upwardly adjust that amount based on a number of specific factors, including the number of repetitions, the duration of the violation, the audience reach of the transmission, and the public safety impact.

In this instance, the FCC emphasized the stations’ sizeable audience reach, noting that the violation was exacerbated by rebroadcasts on the digital subchannel and FM translator. Because all three stations are located in Las Vegas, a top 50 market, the audience reach was substantial. The FCC therefore concluded that an upward adjustment was warranted, proposing a total fine of $20,000. The company has 30 days from release of the NAL to pay the fine or file a written statement seeking reduction or cancellation of the proposed fine.

FCC Proposes $18,000 Fine for Mississippi Television Station’s Late-Filed Issues/Programs Lists

The FCC fined a Mississippi television station $18,000 for failing to timely upload all of its quarterly Issues/Programs Lists to its Public Inspection File. The station recently filed a license renewal application, and an FCC staff review of the station’s Public Inspection File revealed that during the license term, the station uploaded twenty-one of the Lists late and failed to properly disclose these violations in its application.

Section 73.3526(e)(11)(i) of the FCC’s Rules requires every commercial television station to place in its Public Inspection File “a list of programs that have provided the station’s most significant treatment of community issues during the preceding three month period.” The list must include a brief narrative of the issues addressed, as well as the date, time, duration, and title of each program addressing those issues. The list must be placed in the Public Inspection File on a quarterly basis within 10 days of the end of each calendar quarter.

The FCC noted that six of the Lists created during the license term were uploaded more than one year late, eleven Lists were uploaded between one month and one year late, and four Lists were uploaded between one day and one month late. The licensee also did not disclose the violations in its license renewal application. When the licensee failed to provide an adequate explanation for the late uploads, the Commission concluded that the licensee willfully and repeatedly violated Section 73.3526 of the FCC’s Rules. The FCC also found that the failure to report the violations constituted an apparent violation of Section 73.3514(a) of its Rules, which requires that applications filed with the Commission be accurate and complete.

Section 1.80(b)(10) of the FCC’s Rules establishes a base fine of $10,000 for Public Inspection File violations and a base fine of $3,000 for failure to file a required form or information. However, the Commission may adjust the amount upwards or downwards based upon factors such as the “nature, circumstances, extent and gravity of the violation,” in addition to the licensee’s “degree of culpability” and “any history of prior offenses.” Taking those factors into account, the FCC proposed a fine of $15,000 for the late-filed Lists and a fine of $3,000 for the failure to disclose those violations in the license renewal application, resulting in a total proposed fine of $18,000. Noting that the violation did not constitute a “serious violation” nor a pattern of abuse that would prevent renewal of the station’s license, the FCC indicated it would grant the license renewal application by separate action if no other issues arose.

Illinois High School Enters Into Consent Decree for Violations Relating to Periods of Silence, Late Issues/Programs Lists, and Failure to File a Biennial Ownership Report and EEO Program Report

An Illinois High School, the licensee of a noncommercial radio station, recently entered into a Consent Decree with the FCC for failing to (i) promptly notify the Commission that the station was silent for more than ten days, (ii) request Commission authorization to remain silent for more than 30 days, (iii) file required Biennial Ownership Reports, (iv) submit an EEO Program Report, and (v) timely upload its quarterly Issues/Programs Lists to its Public Inspection File throughout the license term.

Section 73.561(d) of the FCC’s Rules permits stations to limit or discontinue operation for a period of no more than 30 days, but requires licensees to notify the Commission no later than the 10th day of limited or discontinued operation. If the station needs to remain silent beyond 30 days, a licensee must request Special Temporary Authority (an “STA”) from the FCC to do so. In this case, the station discontinued operations on June 1, 2019 but did not notify the FCC until September 24, 2019, when it sought an STA.

The FCC granted the STA request on October 10, 2019 for a period of no longer than 180 days. The licensee requested an STA extension on March 10, 2020 which was granted on March 17, 2020 for a period ending June 1, 2020.  Citing reasons associated with the COVID-19 pandemic, the licensee filed a final extension request on June 1, 2020 which the FCC granted on July 15, 2020 for a period ending December 1, 2020. During this time, the licensee filed the station’s license renewal application on August 3, 2020. The station resumed operations on November 14, 2020.

In October 2020, an informal complaint was filed against the license renewal application, arguing that the station was silent for longer than 12 months and that granting the application would be unfair to other high school stations in the region. The complaint also pointed out that the application falsely certified that the station had not been silent for any consecutive 12-month period.  Section 312(g) of the Communications Act states that a license shall automatically expire if a broadcast station “fails to transmit broadcast signals for any consecutive 12-month period.”

In response, the FCC noted its discretion under Section 312(g) to extend or reinstate a license “to promote equity and fairness.” The FCC also noted that the station did resume operations on November 14 – prior to the STA expiring on December 1. The Commission agreed that the licensee incorrectly certified compliance with Section 312(g), but indicated it did not believe the licensee’s incorrect certification was intentionally false, as the station had an STA allowing it to remain silent. However, the FCC did conclude that the licensee violated Section 73.3615(d) (failing to file required Biennial Ownership Reports), Section 73.2080(f)(1) (failing to submit an EEO Program Report with the license renewal application), and Section 73.3527(b)(2)(i) (failing to timely upload Issues/Programs Lists to the Public Inspection File).

In light of the Commission’s findings, the licensee elected to enter into a Consent Decree with the FCC to resolve the matter rather than face an extended FCC proceeding. Pursuant to the Consent Decree, the licensee admitted the violations and agreed to pay a civil penalty of $1,000. The Consent Decree also requires the licensee to file an EEO Program Report within 10 days, and implement a compliance program, including appointment of a compliance officer, development of a compliance manual, implementation of a training program, filing of a compliance report with the FCC a year after entering into the Decree, and reporting to the FCC any violation of the Consent Decree, the Silent Notification Rule, the Ownership Report Rule, the EEO Program Report Rule, or the Public Inspection File Rule within 10 days of discovering a violation.

A PDF version of this article can be found at FCC Enforcement ~ December 2021.

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The filing window for broadcast Biennial Ownership Reports (FCC Form 323 and 323-E) opened on October 1, 2021. All licensees of commercial and noncommercial AM, FM, full-power TV, Class A Television and Low Power Television stations must submit their ownership reports by December 1, 2021.

To save parties from preparing an ownership report from scratch, the filing system permits parties to validate and resubmit previously filed ownership reports, so long as those reports were submitted through the current filing system and remain accurate.  Parties also have the ability to copy and then make changes to information included in previously submitted reports.  There is also a search page which allows a party to search for and review previously-submitted Ownership Reports.

For additional information on preparing and filing a biennial ownership report, the FCC hosted a video information session which is available at Information Session on Filing Biennial Ownership Reports, Forms 323 and 323-E and a PDF copy of the presentation is available here.

As a reminder, Biennial Ownership Reports submitted during this filing window must reflect the ownership interests associated with the station as they existed on October 1, 2021, even if an assignment or transfer of control was consummated after October 1, 2021. Should you need assistance preparing and filing your Biennial Ownership Report, please contact your Pillsbury counsel or any of the attorneys in Pillsbury’s Communications Practice.

A PDF of this article can be found at Biennial Ownership Reports Are Due by December 1, 2021 for All Broadcast Stations.

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Full power commercial and noncommercial radio, LPFM, and FM Translator stations, licensed to communities in Alaska, Hawaii, Oregon, Washington, Guam, Mariana Islands, and American Samoa and full power TV, Class A TV, LPTV, and TV Translator stations licensed to communities in Iowa and Missouri, must file their license renewal applications by October 1, 2021.

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Full power commercial and noncommercial radio, LPFM, and FM Translator stations, licensed to communities in Arizona, Idaho, New Mexico, Nevada, Utah, and Wyoming and full power TV, Class A TV, LPTV, and TV Translator stations licensed to communities in Michigan and Ohio, must file their license renewal applications by June 1, 2021.

June 1, 2021 is the license renewal application filing deadline for commercial and noncommercial radio and TV broadcast stations licensed to communities in the following states:

Full Power AM and FM, Low Power FM, and FM Translator Stations:
Arizona, Idaho, New Mexico, Nevada, Utah, and Wyoming

Full Power TV, Class A, LPTV, and TV Translator Stations:
Michigan and Ohio

Overview

The FCC’s state-by-state license renewal cycle began in June 2019 for radio stations and in June 2020 for television stations.  Radio and TV stations licensed to communities in the respective states listed above should be moving forward with their license renewal preparation.  This includes becoming familiar with the requirements for the filing itself, as well as being aware of recent changes the FCC has made to the public notice procedures associated with the filing (discussed below).

The license renewal application (FCC Form 2100, Schedule 303-S) primarily consists of a series of certifications in the form of Yes/No questions.  The FCC advises that applicants should only respond “Yes” when they are certain that the response is correct.  Thus, if an applicant is seeking a waiver of a particular rule or policy, or is uncertain that it has fully complied with the rule or policy in question, it should respond “No” to that certification.  The application provides an opportunity for explanations and exhibits, so the FCC indicates that a “No” response to any of the questions “will not cause the immediate dismissal of the application provided that an appropriate exhibit is submitted.”  An applicant should review any such exhibits or explanations with counsel prior to filing.

When answering questions in the license renewal application, the relevant reporting period is the licensee’s entire 8-year license term.  If the licensee most recently received a short-term license renewal, the application reporting period would cover only that abbreviated license term.  Similarly, if the license was assigned or transferred via FCC Form 314 or 315 during the license term, the relevant reporting period is just the time since consummation of that last assignment or transfer.

Schedule 303-S: Application for Renewal of Radio and TV Broadcast Station Licenses

Parties to the Application

Some of the certifications an applicant is asked to make in Schedule 303-S relate solely to the station, and some—such as character certifications—relate to any “party to the application.”  A party to the application is any individual or entity that has an attributable interest in a station.  This includes all parties whose ownership interest, positional interest (i.e., an officer or director), or other relation to the applicant confers on that party a sufficient degree of influence or control over the licensee to merit FCC attention.

For a corporation, this typically includes all officers, directors, and shareholders with a 5% or greater voting interest; for an LLC, its officers and members; and for a partnership, all partners.  However, each form of entity comes with its own caveats, limitations, and unique rules for determining attributable interest holders.  For example, limited partners are normally attributable interest holders unless they have been “insulated” from partnership decisions pursuant to very specific FCC requirements.  Filers should reach out to counsel prior to filing if there are any questions about who the FCC would consider a party in interest to the license renewal application.

Character Issues, Adverse Findings and FCC Violations

Pursuant to the FCC’s statutory obligation to consider any serious rule violations or patterns of abuse, each licensee must certify that neither it nor any party to the application has had “any interest in or connection with an application that was or is the subject of unresolved character issues.”  Where the applicant is unable to make this certification, it must include an exhibit identifying the party involved, the call letters and location of the station (or file number of the FCC application or docket), and describe the party’s connection to the matter, including all relevant dates.  The applicant must also explain why the unresolved character issue “is not an impediment” to grant of the license renewal application.

Applicants must also certify whether the licensee or any party to the application has been the subject of an adverse finding in any civil or criminal proceeding involving a felony, a mass-media related antitrust or unfair competition charge, a false statement to another governmental entity, or discrimination.  The applicant must report adverse findings from the past ten years and include an exhibit explaining the matter in detail and why it should not be an impediment to a grant of the license renewal application.  Note, however, that a station does not need to report an adverse finding that was disclosed to the FCC in the context of an earlier station application where it was subsequently found by the FCC to be not disqualifying.

The application form also asks the applicant to certify that “there have been no violations by the licensee of the Communications Act of 1934, as amended, or the rules or regulations of the Commission during the preceding license term.”  The instructions to the form make clear that this question is only asking the applicant to certify that there have been no formal findings of a violation by the FCC or a court, such as a Notice of Apparent Liability, Notice of Violation, or similar finding of a rule violation.  Applicants should not use this section to self-disclose any violations not previously identified by the FCC.

Foreign Ownership and Control

The applicant must also certify that the licensee has complied with Section 310 of the Communications Act regarding foreign influence over the station.  Section 310 generally prohibits the FCC from issuing a license to an alien, a representative of an alien, a foreign government or the representative thereof, or a corporation organized under the laws of a foreign government. It also prohibits a license being issued to an entity of which more than 20% of the capital stock is owned or voted by aliens, their representatives, a foreign government or its representative, or an entity organized under the laws of a foreign country, or, absent a special ruling from the FCC, to an entity whose parent company  has more than 25% of its capital stock owned or voted by aliens, their representatives, a foreign government or its representative, or an entity organized under the laws of a foreign country.

Station Operations

The license renewal application also requires stations to certify that they are currently operational, as the FCC will not renew the license of a station that is not broadcasting.

In a similar vein, Section 73.1740 of the FCC’s Rules sets forth the minimum operating hours for commercial broadcast stations, and Section 73.561 of the Rules establishes minimum operating hours for noncommercial educational FM stations.  In the license renewal application, stations must certify that they were not silent or operated less than the required minimum number of hours for a period of more than 30 days during the license term.  If they cannot, they must include an exhibit disclosing the relevant details and explaining why it should not adversely affect the station’s license renewal.

Stations must also certify as to several statements regarding Radiofrequency Electromagnetic (RF) exposure of the public and workers at the transmitter site.  Stations that were previously renewed and which have had no changes at their transmitter site since their last renewal application will generally be able to certify compliance with this statement. Stations that have had a material change in the RF environment at their transmitter site must assess the impact of that change before certifying RF compliance and may need to submit an exhibit demonstrating the station’s compliance with RF requirements.

Related Filings and Materials

Other Certifications

Successfully navigating the license renewal application also requires stations to certify that the rest of their regulatory house is in order.  For example, applicants must also certify that they have timely made other regulatory filings, such as the Biennial Ownership Report on FCC Form 2100, Schedule 323 or 323-E, and confirm that their advertising agreements do not discriminate on the basis of race or gender and contain non-discrimination clauses.   Applicants must also certify that they have placed all items required to be in the station’s Public Inspection File in the File, and that they have done so on a timely basis.  Public File violations have traditionally been a significant cause of fines at license renewal time.  As the Public Inspection File is now online, stations are reminded that third-parties are now able to easily review and confirm the timeliness of Public File documents.  As with all other certifications in the application form, stations must accurately respond and be prepared to provide documentation supporting their certifications if later requested by the FCC.

EEO

Depending on staff size, one of the items stations must certify is that they have timely placed in their Public Inspection File, as well as on their website, the annual Equal Employment Opportunity (“EEO”) Public File report.  Certain stations must also certify that they filed their EEO Mid-Term Report with the FCC.

Generally, a station that is part of a Station Employment Unit that employs fewer than five full-time employees is exempt from these requirements.  However, at license renewal time, all stations, regardless of staff size, must file FCC Form 2100, Schedule 396, the Broadcast EEO Program Report.  Stations in a Station Employment Unit with fewer than five full-time employees will only need to complete part of the form before filing it.  As a practical matter, because of the mechanics of the FCC’s filing system, an applicant will generally be unable to file its license renewal application until it can provide in that form the file number generated by the FCC when the station’s completed Schedule 396 is filed.

Certifications for Full Power TV and Class A TV Stations Only

While there is significant overlap between the certifications included in both the radio and TV license renewal applications, an important portion of the form specific to full power TV and Class A TV stations concerns certifications regarding the station’s children’s television programming obligations.

The Children’s Television Act of 1990 requires commercial full power TV and Class A TV stations to: (1) limit the amount of commercial matter aired during programming designed for children ages 12 and under, and (2) air programming responsive to the educational and informational needs of children ages 16 and under.  While stations have been required to submit Children’s Television Programming Reports and commercial limits certifications demonstrating their compliance with these requirements on a quarterly or annual basis,[1] the license renewal application requires applicants to further certify that these obligations have been satisfied and documented as required over the entire license term and to explain any instances of noncompliance.  Stations can find additional information on the children’s television programming and reporting obligations in our most recent Children’s Television Programming Advisory.

Although noncommercial TV stations are not subject to commercial limitations or required to file Children’s Television Programming Reports, such stations are required to air programming responsive to children’s educational and informational needs.  In preparation for license renewal, such stations should therefore ensure they have documentation demonstrating compliance with this obligation in the event their license renewal is challenged.

For Class A television stations, in addition to certifications related to children’s television programming, the application requires certification of compliance with the Class A eligibility and service requirements under Section 73.6001 of the FCC’s Rules.  Specifically, such stations must broadcast a minimum of 18 hours a day and average at least three hours per week of locally produced programming each quarter to maintain their Class A status.  Applicants must certify that they have and will continue to meet these requirements.

Post-Filing License Renewal Announcements

In prior license renewal cycles, stations were required to give public notice of a license renewal application both before and after the filing of that application. For the current cycle, the FCC eliminated the pre-filing public notices and modified the procedures for post-filing notices.  These changes modify the timing and number of on-air announcements required, replace newspaper public notice requirements with an online notice, and revise the text of the announcements themselves.

As such, full power commercial and noncommercial radio and LPFM stations, and full power and Class A TV stations, as well as LPTV stations capable of local origination, must broadcast a total of six post-filing license renewal announcements over four consecutive weeks, with at least one airing each week and no more than two airing in any week (each of which must air on different days).  The first such announcement must air within five business days after the FCC has issued a Public Notice announcing its acceptance of the application for filing.

On-air post-filing announcements must be broadcast on a weekday (Monday through Friday) between 7:00 am and 11:00 pm local time based on the applicant station’s community of license.  The text of the announcement is as follows:

On [date], [applicant name], licensee of [station call sign], [station frequency], [station community of license], filed an application with the Federal Communications Commission for renewal of its license.  Members of the public wishing to view this application or obtain information about how to file comments and petitions on the application can visit publicfiles.fcc.gov, and search in [station call sign’s] public file.

For those types of stations that do not have Public Inspection Files, the on-air post-filing announcement should instead be:

On [date], [applicant name], licensee of [station call sign], [station frequency], [station community of license], filed an application with the Federal Communications Commission for renewal of its license.  Members of the public wishing to view this application or obtain information about how to file comments and petitions can visit www.fcc.gov/stationsearch, and search in the list of [station call sign’s] filed applications.

For television broadcast stations, when these on-air announcements are presented aurally, the public notice text must also be presented visually onscreen.

Special rules apply to noncommercial educational stations that do not normally operate during any month when their announcements would otherwise be due to air, as well as to other silent stations. These stations should contact counsel regarding how to give the required public notice.

Certification of Compliance

Within seven days of the broadcast of the last required announcement, full power radio and TV station and Class A TV station license renewal applicants should complete the attached Statement of Compliance and place it in the station’s Public Inspection File.  LPFM and LPTV license renewal applicants should complete the attached Statement of Compliance and place it in their station records file.

Online Public Notice Required for FM Translator, TV Translator, and Certain LPTV Stations

FM translator, TV translator, and LPTV stations not capable of local origination are not required to broadcast post-filing announcements, and have typically been required to publish public notices in a local newspaper instead.  The FCC has eliminated the newspaper publication requirement in favor of online notices, requiring such stations to publish written notice on a station-affiliated website upon filing a license renewal application.

A prominently displayed link or tab that reads “FCC Applications” must be posted on the station website homepage, and link to a separate page containing the following notice:

On [date], [applicant name], [permittee / licensee] of [station call sign], [station frequency], [station community of license], filed an application with the Federal Communications Commission for renewal of its license. Members of the public wishing to view this application or obtain information about how to file comments and petitions on the application can visit [insert hyperlink to application link in applicant’s online Public Inspection File or, if the station has no online Public Inspection File, to application location in the Media Bureau’s Licensing and Management System].

This separate page must also include the date the page was last revised.  The notice and corresponding link to the renewal application must be posted within five business days after the FCC has issued a Public Notice announcing its acceptance of the application for filing and remain on the station’s website for 30 consecutive days.  At the end of the 30-day period, the notice can be removed, and if no other applications requiring online notice are pending, the webpage should be updated to include the following text instead:

There are currently no applications pending for which online public notice is required.

The rules contain specific requirements as to where station applicants that do not have websites should post their announcement. These stations should consult with counsel on the proper online notice procedures.

After publishing the notice, the licensee should complete and execute a Statement of Compliance regarding that publication and place the Statement of Compliance in its Public Inspection File.  While FM translator, TV translator, and LPTV station licensees are not required to keep a Public Inspection File, they are required to maintain and make available to FCC representatives a station records file that contains their current authorization and copies of all FCC filings and correspondence with the Commission.  For them, the completed Statement of Compliance should be included in their station records file.

[1] Note that in 2019, the FCC changed the obligation to file the Children’s Television Programming Report and place the commercial limits certification in the Public Inspection File from a quarterly requirement to an annual obligation.

The full article, along with examples of compliance statements, can be found at License Application Renewal Reminder.

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Pillsbury’s communications lawyers have published 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 includes:

  • Texas-Based Telemarketers Fined Record $225 Million for Robocall Campaign
  • Georgia AM License Renewal Designated for Hearing Over Extended Periods of Silence
  • Public File Violations Lead to Consent Decree for Arkansas Noncommercial FM Station

FCC Issues Record Fine of $225 Million Against Texas-Based Telemarketers for Illegal Robocalls

The FCC recently issued a $225 million fine, the largest in its history, against a Texas company and its owners for transmitting approximately one billion robocalls, many of which were illegally spoofed.

The Truth in Caller ID Act, codified at Section 227(e) of the Communications Act of 1934, and Section 64.1604 of the FCC’s Rules, prohibits using a caller ID service to “knowingly transmit misleading or inaccurate caller identification information with the intent to defraud, cause harm, or wrongfully obtain anything of value”—a practice known as “spoofing.”  Additionally, the Telephone Consumer Protection Act (TCPA), and the FCC’s implementing rules, prohibit prerecorded voice messages to wireless telephone numbers absent the subscriber’s express consent unless the call is for an emergency purpose.

In September 2018, a telecommunications industry trade group provided information to the FCC’s Enforcement Bureau regarding millions of robocalls that had been transmitted over its members’ networks.  The trade group estimated that 23.6 million health insurance robocalls crossed the network of the four largest wireless carriers each day and that many, possibly all, of those robocalls contained false caller ID information.  In response, the Bureau began an investigation to determine the origin of the spoofed robocalls.

The FCC found that many of the calls included false or misleading information about the identity of the caller and that the Texas company made the spoofed calls on behalf of its health care industry clients.  The pre-recorded messages at issue claimed to offer health insurance from well-known health insurance providers such as Aetna, Blue Cross Blue Shield, Cigna, and UnitedHealth Group, yet the FCC found no evidence that the company had any connection with these providers.  Part of the FCC’s findings were based upon recorded conversations between the owners, which included numerous discussions of the company’s robocalling operations, from a roughly three-month period when one of the owners was incarcerated for an unrelated matter.

Between January and May 2019, the company made more than one billion robocalls to American and Canadian consumers on behalf of its clients, a portion of which the Enforcement Bureau reviewed and confirmed were spoofed.  The trade group followed up with the company directly multiple times in 2019 to notify the owners that the robocalls appeared to violate prohibitions against unsolicited telemarketing calls and malicious spoofing.  In response, one of the company owners admitted to making millions of robocalls daily and even admitted to making calls to numbers registered to the Do Not Call Registry in an effort to increase sales.  Although the company informed the trade group that it ceased spoofing caller ID information in September 2019, the robocalls continued.

In June 2020, the FCC issued a Notice of Apparent Liability (NAL), proposing a $225 million fine against the company for violating the Communications Act and the FCC’s rules by spoofing caller ID information with the intent to cause harm and wrongfully obtain something of value.  The company responded to the NAL, claiming that: (1) it did not itself initiate any calls because it was acting as a technology consultant for its client’s calling campaigns; (2) it had only a limited role in the robocall campaigns, did not draft the messages, and believed that it had consent and therefore did not intend to defraud, cause harm, or wrongfully obtain anything of value; (3) the NAL impermissibly lumped the owners and the company (and its affiliates) together rather than attributing wrongful conduct to each party; (4) the owners cannot be held personally liable; and (5) the FCC failed to consider the company’s inability to pay and lack of any prior violations.

The FCC considered but was ultimately not persuaded by any of the company’s arguments.  In issuing the $225 million fine, the FCC noted that, among other things, the company did not contest that it spoofed more than 500 million calls and thus knowingly caused the display of inaccurate caller ID information.  While the company argued that it had only a limited role in initiating these calls, as it was acting in accordance with its client’s wishes, the FCC found that, even if the company was acting at a client’s request, it still knowingly agreed to display the inaccurate information.  The FCC also found that the company acted with wrongful intent by executing a telemarketing campaign in which call recipients were deceived by offers of health insurance from well-known providers.  Because the calls were spoofed, consumers could not identify the caller or easily choose to ignore or block the call and therefore the FCC concluded that the company employed spoofing in furtherance of the fraudulent scheme.

With respect to the owners’ personal liability, the FCC’s analysis of the company’s corporate structure and the public policy implications of broadly shielding individuals from liability for evading legal obligations led the FCC to conclude that it was necessary to hold the owners liable for their actions as officers of the company.  The FCC also distinguished this case from past decisions supporting reductions of proposed fines, noting that the decisions cited by the company did not involve spoofing.  Finally, the FCC noted that the company failed to provide the financial information required to support a claim of inability to pay.

The $225 million fine must now be paid within 30 days following release of the Order.  The FCC noted that if it is not paid within that time, the matter may be referred to the U.S. Department of Justice for enforcement.

Extended Periods of Silence Lead to Hearing Designation Order for Georgia AM Station

The Media Bureau has designated for hearing the license renewal application of a Georgia AM station based on the station’s extended periods of silence during the most recent license term.

Under Section 312(g) of the Communications Act of 1934, a station’s license automatically expires if the station “fails to transmit broadcast signals for any consecutive 12-month period.”  Where silent stations resume operations for only a short-period of time before the one-year limit passes, the FCC has cautioned that such stations will face a “very heavy burden in demonstrating that [they have] served the public interest,” noting that extended periods of silence are an inefficient use of the nation’s limited broadcast spectrum.

Section 309(k)(1) of the Communications Act provides that in determining whether to grant a license renewal application, the FCC must consider whether, in the previous license term, the licensee: (1) served the public interest; (2) has not committed any serious violations of the Act or of the FCC’s rules; and (3) has not committed other violations that, taken together, would constitute a pattern of abuse.  If the licensee falls short of this standard, the FCC can either grant the renewal application with conditions, including an abbreviated license term, or deny it after a hearing to more closely examine the station’s performance. Continue reading →

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Full power commercial and noncommercial radio, LPFM, and FM Translator stations, licensed to communities in Texas, and full power TV, Class A TV, LPTV, and TV Translator stations licensed to communities in Indiana, Kentucky, and Tennessee, must file their license renewal applications by April 1, 2021.

April 1, 2021 is the license renewal application filing deadline for commercial and noncommercial radio and TV broadcast stations licensed to communities in the following states:

Full Power AM and FM, Low Power FM, and FM Translator Stations:
Texas

Full Power TV, Class A, LPTV, and TV Translator Stations:
Indiana, Kentucky, and Tennessee

Overview

The FCC’s state-by-state license renewal cycle began in June 2019 for radio stations and in June 2020 for television stations.  Radio and TV stations licensed to communities in the respective states listed above should be moving forward with their license renewal preparation.  This includes becoming familiar with the requirements for the filing itself, as well as being aware of recent changes the FCC has made to the public notice procedures associated with the filing (discussed below).

The license renewal application (FCC Form 2100, Schedule 303-S) primarily consists of a series of certifications in the form of Yes/No questions.  The FCC advises that applicants should only respond “Yes” when they are certain that the response is correct.  Thus, if an applicant is seeking a waiver of a particular rule or policy, or is uncertain that it has fully complied with the rule or policy in question, it should respond “No” to that certification.  The application provides an opportunity for explanations and exhibits, so the FCC indicates that a “No” response to any of the questions “will not cause the immediate dismissal of the application provided that an appropriate exhibit is submitted.”  An applicant should review any such exhibits or explanations with counsel prior to filing.

When answering questions in the license renewal application, the relevant reporting period is the licensee’s entire 8-year license term.  If the licensee most recently received a short-term license renewal, the application reporting period would cover only that abbreviated license term.  Similarly, if the license was assigned or transferred via FCC Form 314 or 315 during the license term, the relevant reporting period is just the time since consummation of that last assignment or transfer. Continue reading →

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Pillsbury’s communications lawyers have published 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 includes:

  • Imprisoned Former Alabama House Speaker’s Felony Convictions Lead to FCC Hearing on Character Issues
  • California Retirement Home Receives Notice of Violation Over Signal Booster Interference
  • Georgia LPFM Station Hit with $10,000 Penalty for Underwriting Violations

Imprisoned Former Alabama House Speaker’s Felony Convictions Raise Questions About FCC Qualifications

The FCC has designated for hearing the question of whether an Alabama radio broadcaster remains qualified to hold Commission licenses.  The licensee’s president and sole shareholder was convicted of six felony charges involving conduct during his time as Speaker of the Alabama House of Representatives.

Section 309 of the Communications Act of 1934 requires the FCC to designate an application for hearing before an Administrative Law Judge (ALJ) if a “substantial and material question of fact is presented” as to whether grant of an application would serve the public interest, convenience, and necessity.

The character of an applicant is one of several factors examined by the FCC in determining whether a party has the requisite qualifications to become or remain a Commission licensee.  Moreover, an FCC policy (referred to as the Jefferson Radio policy, after a 1964 case) generally prohibits the FCC from granting assignment applications where character questions have been raised regarding the seller.  The theory behind this policy is that a party unqualified to hold an FCC license should not be allowed to profit by selling it.

After a June 2016 trial and multiple appeals, the Alabama Supreme Court upheld six felony convictions against the former Speaker for: (1) soliciting or receiving something of value from a principal; (2) using an official position for personal gain; and (3) representing a business entity before an executive department or agency in exchange for compensation.  Following the court’s decision, and facing a potential four-year prison sentence, the licensee filed an application in September 2020 for consent to assign its FCC authorizations, including AM and FM station licenses, three FM translator licenses, and a construction permit for a new FM translator station.

Prior to filing the assignment application, the licensee had also filed applications for renewal of the AM, FM, and translator station licenses.  In these applications, the licensee disclosed the status of the legal proceedings against the former Speaker.  The FCC considers a felony conviction or misconduct constituting a felony as relevant to its character assessment and ultimately to its determination of whether to grant an application.  The FCC concluded that the former Speaker’s six felony convictions and the actions behind them established a substantial and material question of fact as to whether the licensee, by virtue of the former Speaker’s position as president and sole shareholder, possesses the requisite qualities to hold a Commission license.  As a result, the FCC designated for hearing the questions of whether (1) the licensee has the character to remain a Commission licensee; (2) the licensee’s authorizations should be revoked altogether; and (3) the pending construction permit application should be granted, denied, or dismissed.

Regarding the assignment application, the licensee requested that the FCC apply an exception to its Jefferson Radio policy and grant the application despite the pending character qualification issues.  While the FCC has in limited circumstances found an exception to be warranted, the Commission has generally applied the policy to deter stations from committing violations and then simply selling their assets when faced with potential disqualification.  The FCC found that in the present case, numerous factors weighed against an exception, including the fact that the market is not underserved, as listeners have access to several other broadcast stations, and the lack of any physical or mental disability or other circumstance that would prevent the licensee from fully participating in the hearing.

In light of the pending character concerns, the FCC temporarily set aside consideration of the license renewal and assignment applications until such time as the character questions can be resolved through an administrative hearing before an ALJ.

FCC Investigates California Retirement Community Over Unauthorized Operation of Signal Booster Devices

The FCC’s Enforcement Bureau issued a Notice of Violation to a Bay Area retirement community for interference complaints related to its Private Land Mobile Radio (PLMR) operations.

PLMR operations are wireless communications systems used by many local governments and private companies to meet a variety of organizational communications needs.  These systems have been used to support everything from public safety and utilities to manufacturing and certain internal business communications, and often operate on shared frequencies with other PLMR licensees. Continue reading →

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The deadline to file the 2020 Annual Children’s Television Programming Report with the FCC is January 30, 2021, reflecting programming aired during the 2020 calendar year.  Note that because this deadline falls on a weekend, submissions may be made on February 1, 2021.  In addition, commercial stations’ documentation of their compliance with the commercial limits in children’s programming during the 2020 calendar year must be placed in their Public Inspection File by January 30, 2021.  

Overview

The Children’s Television Act of 1990 requires full power and Class A television stations 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 under, and (2) air programming responsive to the educational and informational needs of children 16 years of age and under.  In addition, stations must comply with paperwork requirements related to these obligations.

On July 12, 2019, the FCC adopted a number of changes to its children’s television programming rules.  Substantively, the new rules provide broadcasters with additional flexibility in scheduling educational children’s television programming, and modify some aspects of the definition of “core” educational children’s television programming.  Those portions of the revisions went into effect on September 16, 2019.  Procedurally, the new rules eliminated quarterly filing of the commercial limits certifications and the Children’s Television Programming Report in favor of annual filings.  These revisions went into effect on January 21, 2020.

The differing effective dates of various aspects of the new rules resulted in a confusing situation in 2020 where stations had to file quarterly documentation of commercial limits compliance for the Fourth Quarter of 2019, but an Annual Children’s Television Programming Report that only covered a small portion of the preceding year.  As a result, the Children’s Television Programming Report and commercial limits documentation filed this year will be the first to reflect an entire calendar year of operation under the new rules. Continue reading →

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Full power commercial and noncommercial radio, LPFM, and FM Translator stations, licensed to communities in Kansas, Nebraska, and Oklahoma, and full power TV, Class A TV, LPTV, and TV Translator stations licensed to communities in Arkansas, Louisiana, and Mississippi, must file their license renewal applications by February 1, 2021. 

February 1, 2021 is the license renewal application filing deadline for commercial and noncommercial radio and TV broadcast stations licensed to communities in the following states:

Full Power AM and FM, Low Power FM, and FM Translator Stations:
Kansas, Nebraska, and Oklahoma

Full Power TV, Class A, LPTV, and TV Translator Stations:
Arkansas, Louisiana, and Mississippi

Overview

The FCC’s state-by-state license renewal cycle began in June 2019 for radio stations and in June 2020 for television stations.  Radio and TV stations licensed to communities in the respective states listed above should be moving forward with their license renewal preparation.  This includes familiarizing themselves with not only the filing deadline itself, but with the requirements for this important filing, including recent changes the FCC has made to the public notice procedures associated with the filing (discussed below).

The license renewal application (FCC Form 2100, Schedule 303-S) primarily consists of a series of certifications in the form of Yes/No questions.  The FCC advises that applicants should only respond “Yes” when they are certain that the response is correct.  Thus, if an applicant is seeking a waiver of a particular rule or policy, or is uncertain that it has fully complied with the rule or policy in question, it should respond “No” to that certification.  The application provides an opportunity for explanations and exhibits, so the FCC indicates that a “No” response to any of the questions “will not cause the immediate dismissal of the application provided that an appropriate exhibit is submitted.”  An applicant should review any such exhibits or explanations with counsel prior to filing.

When answering questions in the license renewal application, the relevant reporting period is the licensee’s entire 8-year license term.  If the licensee most recently received a short-term license renewal, the application reporting period would cover only that abbreviated license term.  Similarly, if the license was assigned or transferred via FCC Form 314 or 315 during the license term, the relevant reporting period is just the time since consummation of that last assignment or transfer. Continue reading →