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In a setback for media interests, the United States Court of Appeals for the Third Circuit yesterday issued its Opinion in Prometheus Radio Project v. FCC (“Prometheus II“). The case focuses on the Federal Communications Commission’s most recent revisions to its media ownership rules, which were adopted in a 2008 Order (the “2008 Order“) concluding the FCC’s 2006 Quadrennial Regulatory Review.

The Prometheus II Opinion generally upheld those portions of the 2008 Order which retained the pre-2003 versions of the:

  • Radio/Television Cross-Ownership Rule
  • Local Television Ownership Rule, including the Top-Four Station and Eight Voices Tests
  • Local Radio Ownership Rule
  • Dual Network Rule

With respect to each of these rules, media interests had argued that the limitations were no longer necessary in the public interest as a result of increased competition, and that the FCC was therefore obligated under Section 202(h) of the 1996 Telecommunications Act to repeal or modify those regulations. The Third Circuit rejected those arguments and found the FCC’s analysis supporting a continuation of its pre-2003 ownership limitations to be reasonable, and not arbitrary, capricious, and/or unconstitutional.

The Third Circuit also remanded some portions of the 2008 Order to the FCC. First, the Third Circuit spent a considerable portion of the Opinion determining that the FCC failed to meet notice and comment requirements of the Administrative Procedure Act with regard to its decisions affecting the Newspaper/Broadcast Cross-Ownership (“NBCO”) rules. The court repeated at length criticisms raised by FCC Commissioner Copps and former Commissioner Adelstein and ultimately decided that these defects were so significant as to require that the NBCO rules be vacated and remanded to the FCC to be considered again as part of the 2010 Quadrennial Regulatory Review.

Also with respect to the NBCO rule, the 2008 Order had granted five permanent waivers of the rule to Gannett and to Media General. A group of public advocacy groups challenged those grants, but the Third Circuit held that the FCC had not been given an opportunity to pass on the arguments below and that the court therefore lacked jurisdiction to hear those challenges.

Finally, the Court ruled that the FCC failed to adequately address proposals to foster minority and female ownership of broadcast media in the 2008 Order and the related Diversity Order. It particularly criticized the FCC’s use of SBA criteria in determining whether a party was an “eligible entity” under the failed station solicitation rule adopted in the 2008 Order, and its failure to give adequate consideration to proposals from interest groups to limit eligibility to socially and economically disadvantaged businesses. As a result, this ruling was also vacated and remanded to the FCC.

From here, the FCC will now have to address the items that the Third Circuit has remanded to it. In addition, the FCC is again considering its multiple ownership rules in conjunction with its 2010 Quadrennial Regulatory Review. Therefore, the ball is yet again in the FCC’s court.

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By: Scott R. Flick and Christine A. Reilly

The next Quarterly Issues/Programs List (“Quarterly List”) must be placed in stations’ local public inspection files by July 10, 2011, reflecting information for the months of April, May and June, 2011.

Content of the Quarterly List

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

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

Given the fact that program logs are no longer officially mandated by the Commission, the Quarterly Lists may be the most important evidence of a station’s compliance with its public service obligations. The lists also provide important support for the certification of Class A TV station compliance that is discussed below and which must be produced by Class A TV applicants and licensees.

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Hope everyone had a great July 4th! With the long weekend now behind us, I wanted to remind readers that July 10th represents a significant filing deadline for radio and television stations. Below is a brief summary of the quarterly deadlines, as well as links to our Client Alerts describing the requirements in more detail.

Children’s Television Programming Documentation

All commercial full-power television stations and Class A LPTV stations must prepare and file with the FCC a Form 398 Children’s Programming Report for the second quarter of 2011, reflecting children’s programming aired during the months of April, May, and June, 2011. The Form 398 must be filed with the FCC and placed in stations’ public inspection files by July 10, 2011.

In addition to requiring stations to air programming responsive to the educational and informational needs of children, the FCC’s rules limit the amount of commercial material that can be aired during programming aimed at children. Proof of compliance with the children’s television commercial limitations for the second quarter of 2011 must also be placed in stations’ public inspection files by July 10, 2011.

For a detailed discussion of the children’s programming documentation and filing requirements, please see our Client Alert here.

Quarterly Issues Programs Lists

The FCC requires each broadcast station to air a reasonable amount of programming responsive to significant community needs, issues, and problems. Radio and television broadcast stations, whether commercial or noncommercial, must prepare and place in their public inspection files by July 10, 2011, a list of important issues facing their communities, and the programs which aired during the months of April, May, and June, 2011 dealing with those issues. For a detailed discussion of these requirements, please see our Client Alert here.

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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 Fines FM Broadcaster an Extra $5,000 For Inaction
  • Inaccurate Tower Ownership Information Ends in $3,000 Fine

Failure to Heed an FCC Warning Regarding Public Inspection File Violations Results in $15,000 Fine
Following a routine inspection in April 2010, the Enforcement Bureau’s Pennsylvania Field Office issued a Letter of Inquiry (“LOI”) regarding the contents of a Pennsylvania FM station’s public inspection file. According to a recently released Notice of Apparent Liability (“NAL”), all of the station’s issues/programs lists for the current license term, a total of 15 quarters, were unaccounted for in the station’s public inspection file at the time of the inspection. Section 73.3526(e)(12) of the FCC’s Rules requires broadcasters to place in their public inspection file each quarter a list of programs that have provided the station’s most significant treatment of community issues. The base forfeiture for violations of Section 73.3526 is $10,000.

In its response to the LOI, the FM broadcaster admitted that the quarterly issues/programs lists were unavailable on the day of the inspection. The FM broadcaster indicated that it was evident “a person or persons had gone through the file and that some of the items had been removed” and was “committed” to bringing the station’s public inspection file into compliance.

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As I wrote back in February, the federal government has decided to conduct the first-ever national test of the Emergency Alert System. Today, FEMA and the FCC announced that the test will occur on November 9, 2011, at 2pm Eastern Standard Time. On that date, the public will hear a message indicating “This is a test,” but FEMA and the FCC indicate that the entire test could last up to three and a half minutes.

Because the test is a presidential EAS test, it must be retransmitted by radio and television broadcasters, cable operators, satellite radio service providers, direct broadcast satellite service providers, and wireline video service providers. In the announcement, FEMA took pains to note that the test will not simply be a pass/fail exercise, but an opportunity to find out what is working and what isn’t, so that the system can be tweaked and improved.

It is likely that the national EAS test will become an annual event following this initial test. One issue that was not discussed in the announcement, however, is how the current September 30, 2011 deadline for EAS participants to install EAS equipment compatible with the Common Alerting Protocol (CAP) could affect the test. The FCC had originally said that the intent of a national test was to assess the existing EAS operation, as opposed to testing the implementation and functionality of the new CAP-compliant EAS equipment soon to being purchased and installed by broadcast, cable, and satellite operators.

As the FCC just last week announced the commencement of a rulemaking to adopt rules and processes for the implementation of CAP, there is a growing feeling that the September 30, 2011 CAP implementation deadline may need to be extended in order to prevent a situation where EAS participants are required to immediately purchase and install new EAS equipment that may or may not comply with the CAP requirements ultimately adopted by the FCC. Whether intended or not, a national EAS test just six weeks after the CAP deadline will likely end up being more about the teething pains of CAP implementation than about how reliably the current EAS infrastructure functions.

As a result, preventing the national test from being sidelined by the inevitable implementation glitches of CAP may be the strongest reason yet for extending the CAP implementation deadline to a date beyond November 9, 2011. It will be good to know how the never-before-tested national EAS infrastructure functions before adding the additional complexities of CAP-compliant EAS equipment to it.

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Last week, the FCC released its long-awaited Third Further Notice of Proposed Rulemaking, the goal of which is to modify Part 11 of the FCC’s Rules in order to allow for Common Alerting Protocol (CAP) delivery of the “next generation” Emergency Alert System (EAS). A copy of the NPRM can be found here.

EAS Participants (e.g., radio and television stations, wired and wireless cable television systems, DBS and SDARS services) have been anxiously waiting for the FCC to release this NRPM since at least the end of last year. The primary reason for this, as we previously reported here and here, is that CAP-compliant EAS encoders/decoders must be purchased, installed and operational by September 30 of this year. The hope of EAS Participants has been that this proceeding will provide them with much needed guidance to make informed decisions regarding what equipment they should obtain and install to ensure compliance with CAP and the revised Part 11 rules. The NPRM also gives EAS Participants the opportunity to comment on the proposed rules and to provide input regarding how CAP and next generation EAS will impact their operations going forward.

The NPRM is a lengthy 203 paragraphs (with an additional 18 pages of proposed new rules) and it asks for public comment on many items related to revising and streamlining the FCC’s Part 11 rules and how the FCC should codify the requirements for processing emergency alerts using CAP. A few of the NPRM’s highlights are summarized below.

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Posted in: Emergency Alert System
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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 Fines FM Broadcaster for Excessive Power and RF Radiation Levels
  • Forfeiture More Than Triples After Consent Decree Default

Missing Fence Yields $10,000 Fine for Utah FM Broadcaster
During a routine inspection in April 2010, Denver field agents cited a Utah FM broadcaster for excess radio frequency radiation (“RFR”) exposure and failure to operate the station as authorized by the FCC. The citations resulted in a combined $14,000 fine.

According to the Notice of Apparent Liability (“NAL”), the station and its antenna tower were located at the top of a hill easily accessible by foot and all terrain vehicles. The station and tower were enclosed by a chain link fence, but access from the base of the hill to the station’s fence was unobstructed. The field agents visited the station on two separate occasions and determined that the station was exceeding permitted RFR exposure levels, with actual RFR ranging from 165 to 315% of the legally acceptable levels at distances between 12 and 28 feet outside the chain link fence. At the time of the inspection, Denver field agents did not observe any posted RFR warning signs on or near the site. Failure to maintain acceptable levels of public RFR exposure is a direct violation of Section 1.1310 of the FCC’s Rules, which mandates that broadcasters comply with the RFR exposure limits established by the National Council on Radiation Protection and Measurements as outlined in the tables provided in the FCC’s Rules.

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The staggered deadlines for filing Biennial Ownership Reports by noncommercial educational radio and television stations remain in effect and are tied to the anniversary of stations’ respective renewal filing deadlines.

Noncommercial educational radio stations licensed to communities in Arizona, District of Columbia, Idaho, Maryland, Nevada, New Mexico, Utah, Virginia, West Virginia, and Wyoming, and noncommercial educational television stations licensed to communities in Michigan and Ohio must file their Biennial Ownership Reports by June 1, 2011.

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

A PDF version of this article can be found at: Biennial Ownership Reports are due by June 1, 2011 for Noncommercial Educational Radio Stations in Arizona, District of Columbia, Idaho, Maryland, Nevada, New Mexico, Utah, Virginia, West Virginia, and Wyoming and for Noncommercial Educational Television Stations in Michigan and Ohio

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During the last license renewal cycle, the FCC handed out an unprecedented number of fines to broadcasters who failed to file their license renewal applications on time. In some cases, a station only learned of its failure to file because the FCC sent it a letter notifying it that the FCC had deleted the station’s call sign from the official records and that the station’s operating authority had been terminated. For a broadcaster, that can ruin your whole day.

Such letters usually lead to an immediate call to the station’s counsel to try and fix the problem before the station’s business, goodwill, and call sign are lost permanently. The associated fines and legal costs to try to resuscitate the station’s license provide further incentive to avoid placing yourself in this situation. Because of this, it is no wonder that some broadcasters are anxious to get their license renewal applications on file well in advance of their filing deadline.

There is, however, such as thing as being too early. The FCC has already returned at least four license renewal applications because they were filed too early. Some were radio broadcasters whose stations are licensed to communities in DC, Maryland, Virginia or West Virginia. They are required to file their applications by June 1st, and are the first to use the new version of the renewal form, which the FCC announced it would begin accepting on May 2. At least one of these stations has already refiled its application, this time waiting for the May 2nd official opening of renewal season.

These stations are not alone, however, with numerous other broadcasters also having filed prematurely. Among these early filers are low power television stations whose renewal applications are not due for a year or more from now. Because many FCC compliance obligations are connected to a station’s license renewal cycle, a station that is off on its renewal filing date by such a margin that its application is filed in the wrong year likely has numerous other FCC issues that need to be examined and addressed.

Compounding the danger is the FCC database’s admonition that it does not generate an automatic dismissal letter notifying the applicant that its renewal application has been dismissed. As a result, these early filers may believe they have discharged their license renewal filing obligations only to later find out that their authority to operate has been terminated.

The window within which a station can file a compliant license renewal application is actually quite small. For most stations in the full power services, as well as LPFM stations, the FCC’s rules require that four pre-filing announcements be aired on specific dates and in specific time periods alerting the public that the station will be filing a license renewal application. Once the application is filed, six more announcements must air noting that the application has been filed, again on a prescribed time schedule. Because the last of the pre-filing announcements must air on the 16th (with the license renewal application due on the 1st of the following month), stations that file before that date will be airing an inaccurate public notice. In addition, the EEO portion of the license renewal application, which is submitted separately using FCC Form 396, requires that all but the smallest stations attach their two most recent annual EEO Public Inspection File reports to the filing. However, the FCC’s EEO rule requires that each annual report cover a time period ending no earlier than 10 days before the anniversary of that station’s license renewal filing deadline. A station can’t comply with that requirement if it files its renewal materials before that 10 day period commences.

Therefore, while May 2nd, 2011 has now passed and renewal season has officially begun, stations filing more than a week or two before their license renewal application deadline are likely creating a potential problem for themselves. This goes double for the 396 EEO form. So far in 2011, more than 70 of these forms have been filed at the FCC by stations whose licenses are nowhere near ready for a license renewal review. To avoid this, stations need to familiarize themselves with the license renewal filing and notice dates applicable to them, and not simply mimic what stations in other states or services are doing.

To give that effort a little boost, you can look at our latest post regarding license renewals, which addresses the upcoming license renewal compliance deadlines (beginning June 1) for radio stations in North Carolina and South Carolina. If you are not a radio station licensee in North or South Carolina, don’t worry, your time is coming. When it does, make sure you are ready early; just not too early.

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Full power commercial and noncommercial radio stations and LPFM stations licensed to communities in the states listed above must begin airing pre-filing license renewal announcements on June 1, 2011. License renewal applications for these stations, and for in-state FM Translator stations, are due by August 1, 2011.

Pre-filing License Renewal Announcements

Full power commercial and noncommercial radio, LPFM, and FM Translator stations whose communities of license are located in North Carolina and South Carolina must file their license renewal applications with the FCC by August 1, 2011.

Beginning two months prior to that filing, however, full power commercial and noncommercial radio and LPFM stations must air four pre-filing announcements alerting the public to the upcoming license renewal application filing. As a result, these radio stations must air the first pre-filing renewal announcement on Wednesday, June 1, 2011. The remaining pre-filing announcements must air once a day on June 16, July 1, and July 16, for a total of four announcements. At least two of these four announcements must air between 7:00 a.m. and 9:00 a.m. and/or 4:00 p.m. and 6:00 p.m.

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

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