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In what now seems like ages ago, the FCC and FEMA conducted the first nationwide test of the Emergency Alert System back on November 9, 2011. While the FCC and FEMA are continuing to review and analyze what went right and what went wrong during the national test, EAS Participants should not forget that their work may not be done. As we discussed immediately following the test, the FCC has mandated that EAS Participants submit the full results of their test to the FCC, either online or on paper, no later than December 27, 2011.

I reported back in October that the FCC created three separate forms for purposes of reporting a station’s test results. Stations should have completed Form 1 prior to the test, providing background information regarding the station’s facilities and equipment, and Form 2 on or as close as possible to the November 9 test date, providing information on whether or not the station received the national test alert and whether the alert was passed along.

In Form 3, the FCC has asked for more detailed information on the success or failure of the test. We were the first to point out publicly that there is a conflict in dates between the FCC’s form page on the website which indicates that the deadline is December 24, and the FCC’s National EAS Test Public Notice which indicates that the deadline is December 27. However, the FCC’s filing rules and discussions we have had with FCC staff confirm that the official deadline is December 27.

So if you have not done so already, make sure to submit the required information about the success or failure of your EAS equipment during the national test prior to next week’s deadline.

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As the Thanskgiving Day tryptophan finally wears off, it’s important not to forget that December 1 is a busy filing day for television and radio broadcasters alike. Below is a brief summary of the FCC’s December 1 filing deadlines, along with links to previous posts describing the filing requirements in more detail.

FCC Form 317 DTV Ancillary/Supplementary Services Report

As we reported last week, commercial television stations must electronically file by December 1 FCC Form 317, the Annual DTV Ancillary/Supplementary Services Report for Commercial Digital Television Stations, even if they have not received any income from ancillary or supplementary services.

FCC Form 323 Commercial Biennial Ownership Report

I wrote back in August that the FCC’s Media Bureau changed the commercial Form 323 filing deadline from November 1, 2011 to December 1, 2011. By December 1, all commercial radio, television, low power television and Class A television stations must electronically file their biennial ownership reports on FCC Form 323 and timely pay the required FCC filing fee.

FCC Form 323-E Non-Commercial Biennial Ownership Report

Noncommercial radio stations licensed to communities in Alabama, Connecticut, Georgia, Maine, Massachusetts, New Hampshire, Rhode Island, and Vermont and noncommercial television stations licensed to communities in Colorado, Minnesota, Montana, North Dakota, and South Dakota (other than sole proprietorships or partnerships composed entirely of natural persons) must electronically file by December 1 their biennial ownership reports on FCC Form 323-E, unless they have consolidated this filing date with that of other commonly owned stations licensed to communities in other states.

Annual EEO Public File Report

Station employment units that have five or more full-time employees and are comprised of radio and/or television stations licensed to communities in Alabama, Colorado, Connecticut, Georgia, Maine, Massachusetts, Minnesota, Montana, New Hampshire, North Dakota, Rhode Island, South Dakota, and Vermont must by December 1 place in their public inspection files (and post on their station website, if there is one), a report regarding station compliance with the FCC’s EEO Rule during the period December 1, 2010 through November 30, 2011.

Pre-filing License Renewal Announcements for Radio Stations

Full-power AM and FM radio broadcast stations licensed to communities in Arkansas, Louisiana and Mississippi must begin on December 1 to air their pre-filing license renewal announcements in accordance with the FCC’s regulations.

Post-filing License Renewal Announcements for Radio Stations

Full-power AM and FM radio broadcast stations licensed to communities in Alabama and Georgia must begin on December 1 to air their post-filing license renewal announcements in accordance with the FCC’s regulations. FM Translator stations must arrange for the required newspaper public notice of their license renewal application filing.

Renewal of Licenses for Radio Stations

Full-power AM and FM radio broadcast stations, as well as FM Translator stations, licensed to communities in Alabama and Georgia must electronically file their applications for renewal of license on FCC Form 303-S, along with their Equal Opportunity Employment Reports on FCC Form 396 by December 1, and timely pay their FCC filing fee.

December 1 represents an eventful filing day. Time for everyone to shrug off the Thanksgiving hangover and make sure your filings are prepared and filed on time.

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In its various incarnations — CONELRAD, the Emergency Broadcast System, the Emergency Alert System, and soon, the EAS CAP system — America’s public warning system has much in common with a vintage automobile that has been taken out of the garage only for short trips. In those short trips (mostly state and local tests and alerts), it has performed adequately, but until this week’s national test, we never had a chance to take it out on the open road and see what it could really do.

Now that the first national EAS test is behind us, we know that the system isn’t broken, but that it definitely will benefit from this breaking in process. That process, which necessarily includes extensive analysis of this week’s test, will reveal numerous ways in which the system can be tweaked for better and more reliable performance under open road conditions. The basic system appears to have run fine; the message got out to the public (though obviously better in some locations than others).

Unlike the relative simplicity of an automobile, however, the EAS system is one of the largest pieces of machinery in the world, having immense geographic scope and a staggering number of components. Getting all of those components to function smoothly together is a complex task that requires much more effort than the typical automotive tune up. Its performance grows more impressive when you remember that most of those components are independently (and privately) owned and operated, and are not supported by federal funding. The EAS system is perhaps the ultimate public-private partnership.

While it is too early to provide a detailed assessment of the areas where the functioning of the system went astray, as we indicated previously, the purpose of the test was to help FEMA, the FCC, and EAS Participants determine the reliability of the EAS system and where it needs improvement, and the test certainly accomplished that. There were a number of issues uncovered with regard to cable and satellite alerts, as well as individual radio and television stations in Oregon and a number of other locations apparently not receiving the test, excessive background audio noise in the test message, some television stations receiving video but no audio, and header codes apparently being sent twice. While the press has understandably focused on areas where problems arose, initial reports seem to indicate that the alert was heard in the vast majority of locations, and that the next area to focus on is ensuring that the content of the alert itself is clear and understandable to the public.

According to the FCC, it and FEMA will now use the results of the test “to identify gaps and generate a comprehensive set of data to help strengthen our ability to communicate during real emergencies. Based on preliminary data, media outlets in large portions of the country successfully received the test message, but it wasn’t received by some viewers or listeners. We are currently in the process of collecting and analyzing data, and will reach a conclusion when that process is complete.”

EAS Participants should remember that just because the national test is over, their work is not done. As we discussed in October, the FCC is encouraging online reporting of each Participant’s test results as soon as possible and has mandated that the information be submitted to the FCC no later than December 27, 2011 (either online or on paper).

In the meantime, that noise you hear coming from the nation’s garage will be thousands of EAS Participants, EAS equipment manufacturers, and government officials tuning and tweaking the EAS system for its next run on the open road.

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FEMA has indicated that the audio of the November 9th national EAS test is being shortened from its original two and a half minute length to thirty seconds. Originally, the government had indicated the entire test would run as long as three and a half minutes, but current indications are that the shortened audio will reduce the length of the overall EAS test to 45-60 seconds.

While FEMA’s reasoning behind the change is not currently known, I note that the National Cable and Telecommunications Association filed a request with FEMA on October 21, 2011 seeking to delay the national test because many cable systems are not ready for it. The problem is that because the proposed test will use the Presidential Emergency Action Notification code, the video will state that “This is an Emergency Action Notification,” and will not give any indication that it is a test. While the audio will make clear that it is a test, those unable to hear the audio (for example, the deaf/hard of hearing or people in a bar where the TV is on but the sound is turned down) could reasonably conclude that an actual emergency is occurring.

While TV broadcasters will generally be inserting a visual crawl indicating that it is only a test, many cable systems do not have that technical capability. NCTA has therefore asked that the test be delayed while the cable industry explores how best technically to insert a visual message over the EAS test assuring viewers that it is indeed only a test.

Given the massive amount of effort that has gone into setting up and preparing for this first ever national EAS test, as well as in notifying the public that there will be a test, delaying it could generate more confusion than just proceeding with the test. It is therefore possible that FEMA’s decision to shorten the test is a pragmatic compromise between either delaying the test or scaring the daylights out of the deaf and hard of hearing community. Presumably, a shorter message is less likely to cause confusion, as it won’t seem as unusual as an emergency message that runs for over three minutes. At a minimum, it will shorten the period of panic, as those watching will see normal programming resume in less than a minute.

Whether the system can be fully tested by the shorter message is already being debated, and some confusion is now unavoidable, given that that the public and first responders have already been told to expect and plan for a test that runs well over three minutes. At the moment, FEMA is trying to get the word out about the shortened test, hoping to reduce that confusion before November 9th arrives.

UPDATE (1:25pm): The FCC has released a new EAS Handbook in light of the shortened test. The Public Notice announcing the new handbook can be found here, and the new EAS Handbook can be found here. The Public Notice indicates that this new version supersedes the version released last week and should be used for all matters related to the November 9 National EAS Test.

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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:

  • Cable Operator Subject to $25,000 Fine for EAS and Signal Leakage Violations
  • Late-filed Renewals Garner $26,000 Fine

Interfering Signal Leakage Proves Costly for Florida Cable Television Operator

The FCC issued a Notice of Apparent Liability for Forfeiture (“NAL”) to the operator of a Florida cable television system for multiple violations of the FCC’s rules. The NAL proposes a $25,000 forfeiture for the system based upon violation of the FCC’s cable signal leakage standards, failure to submit the required registration form to the FCC, and failure to maintain operational Emergency Alert System (“EAS”) equipment.

During a 2011 inspection of the system, agents from the Tampa Office of the FCC’s Enforcement Bureau discovered extensive signal leakage. In order to protect aeronautical frequencies from interference, Sections 76.605 and 76.611 of the FCC’s Rules establish a maximum cable signal leakage standard of 20 microvolts per meter (“µV/m”) for any point in the system and a maximum Cumulative Leak Index (“CLI”) of 64. Inspection of the cable system revealed twenty signal leaks, fourteen of which were over 100 µV/m, with the highest measuring 1,023 µV/m. In addition, the system’s CLI measured 64.88, exceeding the maximum permitted level of 64. The operator also acknowledged the system had not maintained cable leakage logs or performed routine maintenance as required by the FCC. The base forfeiture for these violations is $8,000.

The FCC also found two other violations. In 2010, FCC agents discovered the cable system had not filed its required registration statement with the FCC. In the 2011 inspection, the owner admitted the station had not submitted the required form, and, as of the date of the NAL, had still not filed the form. Section 76.1801 of the FCC’s Rules specifies a base forfeiture of $3,000 for failing to file required forms. Since the system had still not submitted the form more than a year after being instructed to do so, the FCC ordered an upward adjustment of the fine by $1,500.

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By: Paul A. Cicelski

As I mentioned last week, the FCC has been creating an online reporting system for EAS Participants to use to report their results in connection with the first ever nationwide EAS test, which is set to take place on November 9, 2011. In addition, the FCC has been preparing a new EAS Handbook that is designed to be used during the nationwide EAS test in place of the old Handbook. The FCC has now completed both tasks and issued a Public Notice today announcing the activation of the online reporting system and the release of the Handbook. The reporting system and the Handbook can be accessed on the FCC’s Public Safety & Homeland Security Bureau’s EAS Nationwide Test Landing Page.

With respect to the reporting system, the FCC is asking that EAS Participants populate the database in advance of the test with items like station call letters, license identification numbers, geographic coordinates, EAS assignments (i.e., LP or NP status, etc.), EAS monitoring assignments, and the emergency contact representative of the EAS Participant. The FCC is also requesting that EAS Participants input immediate test results, (e.g., was the EAN received and was it passed on) on the day of the test. While the FCC is encouraging rapid online reporting of each Participant’s test results, it is mandatory that the information be submitted to the FCC within 45 days following the test (either online or on paper).

The FCC has created three separate forms which, together, request the following information:

  • Form 1: Prior to November 9, please provide background information on your facilities and equipment.
  • Form 2: On November 9, please provide information on whether you received the alert and whether you passed on the alert.
  • Form 3: Between November 10 and December 24, please provide more detailed information on the success or failure of the test. (Please note that there is a conflict in dates between the FCC’s form page on the website which indicates that the deadline is December 24, while the FCC’s Public Notice indicates that the deadline is December 27).

According to the FCC, the new EAS Handbook “provides EAS Participants with instructions for participating in the first nationwide test of the EAS, scheduled for November 9, 2011, at 2:00 p.m., Eastern Standard Time. A copy of the Handbook must be located at normal duty positions or EAS equipment locations where an operator is required to be on duty and must immediately be made available to staff responsible for participating in the test.” Importantly, the FCC specifically notes that the “handbook will supersede all other EAS Handbooks only during the operation of the Nationwide EAS Test on November 9, 2011.”

Don’t forget that a great deal of additional useful information on the national test can be found at the National Alliance of State Broadcasters Associations’ EAS Alert website and at the National Association of Broadcasters’ EAS National Test website. Both will greatly assist EAS Participants in successfully completing the national test.

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As reported previously, FEMA, along with the FCC and NOAA, will conduct the first nationwide Emergency Alert System (EAS) Test on November 9, at 2:00 p.m. Eastern. The EAS has never been tested on a national level. Needless to say, it is important for EAS Participants to educate the public in advance of the test so as to avoid panic when the test airs.

The FCC and FEMA have produced public service announcements (PSAs) to increase public awareness of the test. The National Association of Broadcasters recommends that all EAS Participants air one or more of these PSAs, starting at least a week prior to the test, and then increase the frequency of the PSAs as the November 9 deadline draws near. Video and audio PSAs that can be used to educate the public are located on the FCC’s National EAS Test website.

In addition, the National Alliance of State Broadcasters Associations and the NAB have put together very useful EAS websites here and here that can greatly assist EAS Participants in conducting the national test. The NAB has put together a checklist that provides tips to ensure that EAS equipment is ready for the test, and outlines specific actions EAS Participants should take before and after the test. Also, FEMA has put together a just released “EAS Best Practices Guide” that provides helpful information for improving the effectiveness of EAS going forward. On the day of the test, stations should follow the procedures set forth in the FCC’s soon-to-be-released new EAS Handbooks, and disregard prior versions of the Handbooks.

The FCC is currently in the process of completing an electronic EAS reporting system to allow EAS participants to electronically report on their experience in participating in the national test (what went right and what went wrong at their facility). As soon as it becomes available, the FCC is encouraging EAS Participants to log in and populate the system with as much “pre-fill” information as possible in advance of the test so as to facilitate the rapid submission of reports by EAS Participants once the test has concluded.

While EAS Participants are not required to submit their EAS test reports electronically, the FCC is encouraging electronic filing to provide the FCC with “real time results” from the test. As soon as practicable following the test, the FCC is urging EAS Participants to let the FCC know whether they (1) received the Emergency Action Notification and (2) if required to do so, were able to rebroadcast the test. Within 45 days following the test, all EAS Participants must provide a comprehensive and detailed diagnostic report to the FCC on the results of their participation in the test. This mandatory report can be filed either electronically or on paper.

Perhaps the most important action EAS Participants can take beyond educating the public (and hopefully state and local officials) in advance of the test, is to make sure that their EAS equipment is functioning properly and is actually attended by someone when the national test message is received on November 9. While the equipment is designed to automatically receive and retransmit test messages, nothing beats having someone there to monitor the process and ensure the test is relayed smoothly.

Stay tuned for further details on the test as they become available, including a discussion of the soon-to-be-operational FCC national test filing database and the not-yet-released EAS Handbooks to be used during the national test. Both should be made public any day now.

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Both TV and radio stations are learning that medical marijuana can give you a bad headache. However, everyone, including the Department of Justice, currently seems uncertain as to the long-term prognosis for stations that aired medical marijuana ads. As I wrote here last week, leading to a number of articles on the issue in trade press and around the web this week, it is clear that the DOJ has abandoned any pretense of taking a restrained approach to the natural conflict between state laws permitting medical marijuana and federal laws prohibiting it as an illegal drug. The question I had raised back in May, and focused on in last week’s post, was whether the threat to media running medical marijuana ads had moved from theoretical to imminent.

When the DOJ sent letters to the landlords of medical marijuana dispensaries last week telling them to evict their dispensary tenants or risk imprisonment, forfeiture of their buildings and confiscation of all rent collected from those dispensaries, it became clear that media collecting ad revenues for promoting the sale of medical marijuana could just as easily be in the DOJ’s crosshairs. What I found interesting about the reaction to last week’s post, however, was an assumption by many that this is a radio-only issue, and that television stations “did not inhale” medical marijuana ad revenues these past few years. However, the first (and as far as I know, only) medical marijuana complaint pending at the FCC was lodged against a large market network TV affiliate.

The DOJ apparently doesn’t see it as a radio-only matter either. When the issue was raised by a reporter this week, U.S Attorney Laura Duffy caused a stir by announcing that her next target is indeed medical marijuana advertising, noting that she has been “hearing radio and seeing TV advertising” promoting the drug.

The good news for media in general is that, unlike the FCC, the DOJ is less concerned about past conduct, and more interested in reducing future medical marijuana advertising (and thereby reducing future medical marijuana sales). It was therefore in character when Ms. Duffy announced that her first step would be notifying media “that they are in violation of federal law.” The DOJ followed a similar approach in 2003 when it sent letters to broadcasters and other media threatening prosecution of those running ads for gambling websites on grounds that those media outlets were “aiding and abetting” the illegal activities. You can read a copy of the letter here. I note with a bit of irony that one of the arguments made by the DOJ in the 2003 letter is that stations should not be airing ads for online gambling “since, presumably, they would not run advertisements for illegal narcotics sales.”

While the DOJ later pursued some media companies for running ads for online gambling, including seizing revenue received from those ads, its efforts were principally aimed at making an example of those who failed to “take the hint” from the DOJ’s 2003 letter. It seems likely that the DOJ will follow a similar path with regard to medical marijuana ads, focusing primarily on putting an end to the airing of such ads as opposed to pursuing hundreds of legal actions against those who previously aired them.

Also providing at least a small sense of relief for media are more recent statements from the office of Ben Wagner, one of (along with Laura Duffy) California’s four U.S. Attorneys, indicating that he is not currently focusing on medical marijuana advertising. While that could obviously change at any time, it does suggest that any action against media for medical marijuana advertising is at the discretion of the individual U.S. Attorney, and not an objective of the DOJ as a whole.

If the DOJ remains true to its past practices, then broadcasters and other media can likely avoid becoming a target for legal action by ceasing to air medical marijuana ads now. Pursuing individual media outlets is resource-intensive for the DOJ, and raises some thorny legal issues. More to the point, there is little to be accomplished by such actions if media outlets have already stopped airing the ads.

With regard to the FCC, however, broadcasters are not so lucky. Unlike the DOJ, which can choose whether to pursue an action against a media outlet, the FCC will likely be forced to address the issue both in the context of adjudicating complaints against broadcasters for airing medical marijuana ads, and in considering whether a station’s past performance merits renewal of its broadcast license. Given the classification of marijuana as an illegal drug under federal law, and particularly in light of the government’s other attacks on components of the medical marijuana industry, it will be difficult for the FCC to avoid confronting the issue, even where a station stopped airing the ads years ago. As a result, print and online media outlets may be able to get the marijuana advertising out of their systems fairly quickly, but broadcasters could be suffering legal flashbacks for years to come.

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In what became one of our more heavily circulated posts, I wrote a piece back in early May entitled “Will Marijuana Ads Make License Renewals Go Up in Smoke?” It noted that the Department of Justice was showing signs of abandoning its “live and let live” policy toward medical marijuana producers and dispensaries operating in compliance with state laws.

Because advertising by such dispensaries had become a significant revenue source for broadcasters in states where medical marijuana was legalized, the DOJ’s about-face placed broadcasters in an awkward position. While medical marijuana may be legal under state law, it has never been legal under federal law. This means that broadcast stations, which the law deems to be engaged in an interstate activity, and whose livelihood depends on license renewal by the FCC, are an easy target for a Federal Government intent upon suppressing the sale of medical marijuana. The takeaway from my post was that stations should think long and hard before accepting medical marijuana ads.

It became clear this morning that it was time to do an update on the subject when an article from the Denver Post came across my desk noting that “the last bank in Colorado to openly work with the medical-marijuana industry — Colorado Springs State Bank — officially closed down the accounts of dispensaries and others in the state’s legal marijuana business over concerns about working with companies that are, by definition, breaking federal law.” Like broadcasters, the banking industry is heavily regulated by the Federal Government, and it appears that Colorado bankers have collectively concluded that, despite the large sums of money involved, it is not worth the risk of dealing with medical marijuana dispensaries and incurring the wrath of the feds.

That development alone should concern broadcasters airing medical marijuana ads. However, late today, word got out that the DOJ, through its four U.S. Attorneys in California, sent letters threatening medical marijuana dispensaries in California with criminal charges and confiscation of their property if they do not shut down within 45 days. Of particular interest to broadcasters (and any other media running medical marijuana ads), these letters were sent not just to dispensaries, but to their landlords, effectively telling the landlords to evict their tenant or risk imprisonment, forfeiture of their building and confiscation of all rent collected for the period the dispensary was in business.

The DOJ’s willingness to threaten those who are not engaged in the sale of medical marijuana, but who merely provide services to those who are, should raise alarm bells for media everywhere. If landlords who collect rent from medical marijuana dispensaries are at risk, media that collect ad revenues from promoting the sale of medical marijuana could just as easily be in the DOJ’s crosshairs. More to the point, the Federal Government is in a much better position to exercise leverage over the livelihoods of broadcasters than over California property owners not engaged in any form of interstate activity.

Colorado bankers have apparently already reached a similar conclusion, and the DOJ’s stepped-up campaign in California against medical marijuana removes any doubt for broadcasters and other media as to which way the federal winds are now blowing. You can expect a heated legal and political battle between the states and the Federal Government over the DOJ’s efforts to nullify state medical marijuana laws. While that battle ensues, broadcasters and other media will want to do their best to stay out of the line of fire.

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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:

  • Low Power Broadcaster’s Defiance Results in $7,000 Upward Adjustment
  • Unauthorized Post-Sunset Operations Lead to $4,000 Fine for AM Station

Belligerence Costs a Florida Broadcaster an Additional $7,000

Pursuant to a recently issued Notice of Apparent Liability (“NAL”), a Florida low power FM broadcaster was penalized an additional $7,000 for refusing to power down its transmitter at the request of agents from the FCC’s Tampa Field Office. In June 2010, FCC field agents, following up on a complaint lodged by the Federal Aviation Administration regarding interference to its Air Traffic Control frequency at 133.75 MHz, employed direction-finding techniques to locate the source of the interference. The source turned out to be a low power FM station. When approached by the agents, a “representative of the station” repeatedly refused to power down the station even though the agents explained that the interference was an “ongoing safety hazard” and a “safety of life hazard.”

During a subsequent telephone conversation between the station owner and an agent, the owner refused to let his representative at the station power down the transmitter until the station engineer was present. The station owner arrived at the transmitter site 30 minutes later and allowed the agents to inspect the station. At the time of the inspection, agents discovered that the station was using a transmitter that was not certified by the FCC, a direct violation of Section 73.1660 of the FCC’s Rules. The base forfeiture for operating with unauthorized equipment is $5,000.

Two months after the site inspection, the Tampa Field Office issued a Letter of Inquiry. In its response, the licensee admitted that the noncompliant transmitter had been in use for approximately four months, up to and including the date of the site inspection. The response also indicated that the transmitter was replaced by a certified transmitter on July 9, 2010.

The FCC decided that the “particularly egregious” nature of the violation, and the station owner’s “deliberate disregard” of an air traffic safety issue, warranted an upward adjustment of $7,000 to the base fine. The NAL therefore assessed a $12,000 fine against the station.

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