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4/8/2010
The FCC’s Media Bureau has announced that a new version of the Biennial Ownership Report Form for commercial broadcast stations, FCC Form 323, will be available on its website as of April 9, 2010. All commercial broadcast station owners must file their biennial ownership reports using the new form by July 8, 2010. However, the data used to complete the form must be accurate as of November 1, 2009.

The FCC originally announced its intent to implement a new version of the Form 323 in an Order released in May 2009 as part of its Promoting Diversification in the Broadcasting Services proceeding. The revision required, among other things, that each holder of a direct or indirect attributable interest in a licensee secure an FCC-issued Federal Registration Number (“FRN”). The revision also mandated that information regarding attributable interest holders and their other broadcast interests be reported repeatedly and in a precisely structured manner. As a result, the number of reports and the time to complete each report increased dramatically for many broadcasters with the ultimate result that the FCC’s electronic filing system ground to a near halt and did not reliably save information entered into it. Based on these technical difficulties, the FCC stayed the filing obligation until it could improve the functioning of the form to account for these difficulties.

The FCC sent its revisions to the form to the Office of Management and Budget (“OMB”) for approval on March 25, and OMB approved the modified form on March 26. The revised form uses a new XML Spreadsheet template that will allow information to be entered into the spreadsheet and then uploaded to the form, thereby reducing the time and effort needed to enter the data. The spreadsheet must be downloaded from the FCC form and comes with detailed instructions regarding the proper use of the XML Spreadsheet. Of particular note are the following:

  • The XML Spreadsheet comes with 25 empty rows for data entry that contain embedded validation codes necessary for the proper functioning of the form. Any licensee needing more than 25 lines must copy and paste the original 25 lines as many times as necessary and not create new lines.
  • The XML Spreadsheet must be saved with an .xml extension, not the .xls or .xlsx extensions that the Excel program will assign by default.
  • Licensees must not change or delete any data in Cell B1.
  • Information must be entered in all capital letters.

The new version of the form also retains the requirement that each attributable interest holder secure an FRN. The instructions state that where, after a good faith effort, a licensee is unable to secure an interest holder’s social security number, which is needed to complete the FRN registration process, a button on the form will allow the licensee to secure a Special Use FRN. The instructions to the form state that the Special Use FRN can only be used for the Biennial Ownership Report filing, and not for any other filing, such as a post-consummation Ownership Report filing.

The Commission’s May 2009 Order also adopted November 1 as a new uniform reporting date for all commercial stations nationwide, regardless of the station’s license renewal filing anniversary (the deadline previously used by the FCC). Because the original November 1, 2009 filing requirement was stayed while the form was revised, the reports filed by the new July 8, 2010 deadline must still reflect the ownership data as it existed November 1, 2009.

The substantial difference in time between the new filing deadline and the time for which ownership information is being reported leads to some interesting questions. For example, where a station has been sold since November 2009, should the report be filed under the name of the new licensee or the prior licensee. If it is to be filed by the new licensee, how will the FCC deal with the fact that the new licensee may not have any personal knowledge of the prior licensee’s November 2009 ownership structure? These questions may be answered by a follow up public notice from the FCC, but if not, we will be pursuing them with the FCC’s staff.

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March 2010
This Broadcast Station EEO Advisory is directed to radio and television stations licensed to communities in: Delaware, Indiana, Kentucky, Pennsylvania, Tennessee and Texas, and highlights the upcoming deadlines for compliance with the FCC’s EEO Rule.

Introduction
April 1, 2010 is the deadline for broadcast stations licensed to communities in the States/Territories referenced above to place their Annual EEO Public File Report in their public inspection files and post the report on their website, if they have one. In addition, certain of these stations, as detailed below, must electronically file their EEO Mid-term Report on FCC Form 397 by April 1, 2010.

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

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March 2010
The next Quarterly Issues/Programs List (“Quarterly List”) must be placed in stations’ local public inspection files by April 10, 2010, reflecting information for the months of January, February and March, 2010.

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.

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March 2010
The FCC has suspended indefinitely the deadline for commercial radio and television stations to file their Biennial Ownership Reports. However, the deadlines for filing Biennial Ownership Reports by noncommercial educational radio and television stations remain in effect, tied to their respective anniversary renewal filing deadlines.

Noncommercial educational radio stations licensed to communities in Delaware, Indiana, Kentucky, Pennsylvania and Tennessee, and noncommercial educational television stations licensed to communities in Texas, must file their Biennial Ownership Reports by April 1, 2010.

Last year, 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 April 1, 2010 for Noncommercial Educational Radio Stations in Delaware, Indiana, Kentucky, Pennsylvania and Tennessee, and for Noncommercial Educational Television Stations in Texas.

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The 2010 NAB Show in Las Vegas is fast approaching! Your Pillsbury attorneys, including Dick Zaragoza, Cliff Harrington, Scott Flick, Miles Mason, Laurie Lynch Flick, Paul Cicelski and Christine Reilly will be at this annual event, which takes place in just one month, from April 10th to the 15th. We look forward to meeting and talking with our clients and friends at the show. We will be staying at The Bellagio (702-693-7111), and if you plan to attend the NAB Show and would like to see us, please contact Julia Colish in our office. Ms. Colish can be reached via e-mail (julia.colish@pillsburylaw.com) or by telephone at (202) 663-8261.

We look forward to seeing you at the NAB Show.

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This Advisory provides a review of the FCC’s political broadcasting regulations.

Introduction
Eight years after adoption of the Bipartisan Campaign Reform Act (“BCRA”) of 2002, popularly known as “McCain-Feingold,” Congress’ and the FCC’s interest in political broadcasting and political advertising practices remains undiminished. Broadcast stations must insure that a broad range of federal mandates are met, providing “equal opportunities” to all candidates using the stations facilities, affording federal candidates for public office “reasonable access” and treating all candidates for public office no less favorably than the station treats its most favored advertisers. Accordingly, it is imperative that broadcasters be very familiar with what is expected of them in this regulatory area, that they have adequate policies and practices in place to insure full compliance, and that they remain vigilant to legislative, FCC, and FEC changes in the law.

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The U.S. District Court for the District of Columbia has ruled that the Copyright Royalty Board is constitutional. The decision ends for now a long-running controversy over the legitimacy of the CRB, which sets royalty rates that webcasters pay to copyright owners– rates that webcasters see as excessively high and a threat to the industry.

The CRB is comprised of three judges appointed by the Librarian of Congress. It meets once every five years to establish the royalty rates that webcasters must pay copyright owners when using their music on the Internet. In the past, the rates set by the CRB were decried by webcasters as excessive, which ultimately led to the passage of the Webcasters Settlement Acts of 2008 and 2009. Pursuant to these statutes, several classes of webcasters, including small commercial webcasters, microcasters, and noncommercial webcasters, have been able to negotiate settlement agreements with SoundExchange, which represents the copyright holders, and agree to rates that, while still unpopular with webcasters, are nonetheless lower than those set by the CRB.

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Comments are due by March 1, 2010 and Reply Comments are due March 30, 2010 to the FCC’s proceeding to implement national emergency alert testing at least once a year and to collect station data from such tests.

In a Second Further Notice of Proposed Rulemaking (“NPRM”) concerning updating of the nation’s Emergency Alert System (“EAS”) to meet modern security concerns, the FCC proposes to require testing of the EAS on a nationwide basis. To date, the EAS has never been used to deliver a national EAS alert. While Part 11 of the FCC’s rules requires periodic testing of state and local EAS alerts by all radio and television EAS participants, no national test of the EAS has ever been conducted, and the current rules do not require such testing. As a result, it is not known whether the system would in fact function as required should the President issue a national alert. Accordingly, the FCC proposes to require EAS participants to take part in national EAS testing, as well as continue a modified schedule of the weekly and monthly EAS already in effect.

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The FCC has released an Order amending its digital audio broadcasting (“DAB”) rules for FM stations operating digital facilities. According to the Order, the underlying purpose for the change is to “improve FM digital coverage and to eliminate regulatory impediments to FM radio’s ability to meet its full potential and deliver its promised benefits.”

The Order authorized most FM stations using an in-band on-channel (“IBOC”) DAB system to increase their digital effective radiated power (“ERP”) by 6 dB without prior FCC approval. The FCC concluded that, due to potential interference issues, super-power FM stations (those having authorized ERPs above the maximum level for their station class) are subject to different digital ERP limitations and may not increase their digital ERP without FCC approval. Under the new rules, the maximum digital ERP for super-power FM stations will be the higher of the “currently permitted -20 dBc level or 10 dB below the maximum analog power that would be authorized for the class of the super-powered FM station adjusted for the station’s antenna height above average terrain.”

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FCC establishes June 12, 2010 as a “hard date” for wireless microphones and certain broadcast low power auxiliary operations to vacate 700 MHz spectrum. Some stations will have to move much sooner.

The FCC has released an Order further clearing the 700 MHz band of incumbent users to permit the new public safety and commercial users of those frequencies to complete construction and commence operations. The Order addresses use of the band by low power auxiliary stations intended for use as wireless microphones, cue and control communications, and synchronization of TV camera signals, and requires that such stations cease operations in the band by June 12, 2010. The FCC indicates that current users will need to move sooner than that if they either receive direct notice from new users of the spectrum that public safety or commercial wireless operations in the band will be commencing, or if the FCC releases a later Public Notice to that effect. The Order includes a Further Notice of Proposed Rulemaking (“FNPRM”) in which the Commission proposes broad revisions to the rules governing low power auxiliary operations. Broadcasters that have been or contemplate operating low power auxiliary stations on an unlicensed basis may be able to secure greater interference protection by licensing their facilities instead. Comments on the FNPRM are due on February 22, 2010 and Reply Comments are due by March 15, 2010.

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