NJBA Weekly Newsletter Friday, February 12, 2010

Snow Closes FCC Down, but New Jersey Radio Stays Up

New Jersey was turned into an icicle on Wednesday with the “Blizzard of 2010” hitting the Garden State particularly hard. The unrelenting snow and wind wreaked havoc with many broadcasters fighting the elements to keep their broadcast signals on the air because of high winds, snow and accumulating ice, causing power failures and antenna connectivity issues. NJBA Board Members Brett Denafo (Atlantic Broadcasting, Atlantic City) and Bob Maschio (Coastal Broadcasting, Wildwood) were among the dedicated station owners braving the storm on Wednesday to keep their stations up and running in spite of Mother Nature’s onslaught. Their tenacity and commitment to their audiences are a fine example of the unrelenting spirit and dedication of our local New Jersey broadcasters, who literally risked life and limb this week in order to serve the people that rely upon their signals for news and information about the storm, which caused over 40,000 power outages in the South Jersey listening area. Over 5,700 flights were cancelled on Wednesday and thousands more on Thursday. Washington DC was also hard hit with this back to back snow event, which set a new snowfall record for the District with 54.9 inches now recorded. Unlike our New Jersey broadcasters, however, the blizzard forced the first-ever four day snow-related closure of the federal government, including the FCC. Brett and Bob may need to get down to DC and show them how New Jersey broadcasters do snow! 

Join the Fight Against a New Performance Tax

 

The most pressing issue we currently face as an industry is the toxic performance tax on local radio stations. Please visit our new virtual advocacy center to help defeat this threatening legislation. The site will enable NJBA members, our friends, family, and the general public to better understand the destructive nature of the Performance Tax and show you how to best reach members of Congress directly with new advocacy tools and features. Visit www.NoPerformanceTax.org to see the new site, and click on "Broadcaster Resources" to access all the tools you will need to oppose the performance tax. The Broadcaster Resources section is for members only, so you will need your station member ID in order to register. And television stations around the country have committed to airing commercials focused on radio’s royalty battle, as well. Together, we can continue to build a strong future for broadcasting - starting with the defeat of this incredibly wrong-headed performance tax legislation.  

New Sales Opportunities for Broadcasters

Next Wednesday, February 17^th, beginning at 12:00 noon, the landmark Supreme Court case Citizens United v. FCC, which has clearly transformed the rules for corporate spending on advertisement campaigns, will be analyzed and explored by a team of experts from Womble Carlyle's Communications and Political Law Groups. Now corporations -- as well as associations, advocacy groups and unions -- are free to buy air time to advocate for or against candidates in federal and state elections also allowing companies to transfer unlimited funds to associations and other groups to air these ads. It is anticipated that the Citizens United ruling will result in a flood of new spending on radio and TV campaign ads this election year, with some estimates exceeding a half billion dollars. In this timely webinar, industry experts will explain what has changed after the Citizens United case, and what remains the same. Attendees will also learn specific strategies for broadcasters to expand their advertiser base in the aftermath of this ruling. Please register online at: www.wcsr.com/CitizensUnitedBroadcastWebinar  Questions about this Webinar should be directed to Katie Tedrow at Womble Carlyle at KaTedrow@wcsr.com  or (202) 857-4502.  Registrants will receive an email containing all log-in information prior to the program. The Webinar is Free for NJBA Members, but space is limited! Special thanks go to our Association Counsel, John Garziglia, Esq., and our friends at Womble Carlyle's Communications and Political Law Groups,  and the Ten State Broadcaster Associations on the Amicus Curie Brief in Citizens United v. Federal Election Commission, who are presenting this timely Webinar. 

SHVERA Setback

As you know, legislation to reauthorize the Satellite Home Viewer Act expires on February 28, 2010. Over the course of the last week, the Senate Finance Committee introduced a broad job-creating bill that included the SHVERA reauth among other things. Unfortunately, SHVERA and these other tangential riders were striped from the bill late yesterday. The NJBA will continue to keep you informed as we work to get this bill favorably reauthorized before the February 28th deadline. If a deal is not reached in the next week, look for Leadership to extend another short term extension on SHVERA legislation.  

New FCC Report Needs You Input by March 8^th

Kevin Goldberg of Fletcher Heald & Hildreth points out in his latest Blog Entry that the “FCC wants to know everything about everything.” The scope of the inquiry seems to be Everything-Anybody-Could-Possibly-Know-And-Then-Some, although speculation, surmise and other elements arguably falling short of “knowledge” or “fact” will apparently also be welcome. Broadcasters will have until March 8 to get their thoughts together and ship them over to the FCC. The Public Notice contains a list of 42 questions (many in several parts), sprinkled over seven broad subject headings. He points out that “With its Future of Media Project, the FCC has set out to write, perhaps with unrealistic ambitions, a report about staggeringly broad and unfocused topics.  But one thing is incredibly clear:  that project will necessarily implicate the possibility of government regulation of news and other content.” You can view the entire entry at:

http://www.commlawblog.com/2010/02/articles/first-amendment/the-fcc-wants-to-know-everything-about-everything/index.html

Christie Declares Fiscal Emergency

As the Snow was settling across the Garden State on Thursday morning, Gov. Chris Christie declared a state of fiscal emergency freezing $1.6 billion in unexpended funds. The Governor signed the executive order before addressing a joint session of the state Legislature yesterday allowing him, due to a budget deficit he estimates at $2.2 billion, to direct the Treasury Department to freeze funds. Christie also announced $70 million in spending cuts achieved by eliminating programs deemed to be inefficient or ineffective. Unspent funds from 375 line items in the state budget will be frozen. However, he stated that “Contractual obligations” could not be touched and that they would still be honored. (Symons, Gannett)

STAR 99.1 Raises $100K+ in One Day for Haitian Relief

Pillar of Fire Christian AC WAWZ (STAR 99.1) partnered with Compassion International and Help Haiti with Compassion this month to raise money for relief efforts in HAITI. Star 99.1 listeners gave $100,579 to the campaign in one day. “It’s reassuring that Americans really do step up and care for others in a time of crisis. I thank everyone who gave," said PD/morning show host Johnny Stone. Congratulations to NJBA Board 2^nd Vice Chairman Scott Taylor, Star 99.1’s General Manager, and his entire team for stepping up to the plate and knocking one out of the park for the earthquake ravaged people of Haiti.  

The Trenton Report: From the Marcus Group

Governor Chris Christie’s cabinet is taking shape. The Senate Judiciary Committee Tuesday approved Paula Dow’s nomination for attorney general after a five-hour hearing. Additionally, the committee approved Major General Glenn Rieth, who has led the New Jersey National Guard since 2002. He is one of four holdovers from Governor Corzine's cabinet, and will serve as adjutant general and head of the Military and Veterans Affairs Department. These nominations now head to the full Senate for confirmation. Governor Christie’s remaining nominations are serving in an acting capacity until they are considered by the Senate. 

Don’t Let This Happen to You!

Last week, the FCC fined a noncommercial FM station $8000 for failing to make its public inspection file available when it was requested.  The FCC made clear that past cases where a noncommercial station was given only an admonition for similar violations were no longer good law, finding that the public file was an important part of the station's obligations to the public and the failure to make it available was a serious violation.  Obviously, this kind of action should never occur at any station - commercial or noncommercial.  The public file is to be made available to visitors immediately upon request.  Thus, station employees need to be trained as to where the file is located, and know that anyone can review it, without harassment or questioning as to their motivation for doing so. This case should serve as a warning to all stations, commercial and noncommercial, that they need to have people at the station at all times who know where the public file is located, and that all visitors who request access to the file need to be given such access. Check out the NJBA’s Alternate Inspection Program and set up an inspection by calling Mary at the Broadcast House today! 

College Stations Dreading Performance Tax

How pathetic has the record industry become? The recording industry believes it is cutting small noncommercial student-run college radio stations a huge break by allowing them a reduced rate on performance royalties. But students in the upper Midwest don’t find the amount to be so tiny. RBR-TVBR reports that the University of North Dakota’s student newspaper, Dakota Student, said that the possibility of maintaining a noncommercial student-run FM is getting just a little bit dicier there given the possibility that Congress might at some point pass the Performance Rights Act. They looked at the budget of a student college station in St. Cloud MN. It was said to receive $14K from the student fund. That means it still has to find a way to come up with an additional $2K just to meet minimum operational costs. Adding $500, the PRA-prescribed minimum royalty payment, amounts to a 25% increase to that challenge. At UND, they’re looking at start-up costs of $40K to begin with, and the possibility of a brand new ongoing fixed expense is just increasing the headwinds they are facing to even get the station off the ground in the first place. College stations are the perfect place for unknown acts to start generating some buzz. It’s vital free promotion that is available in few other places. But the recording industry has so lost its way that it cannot seem to remember that radio made it what it is in the first place. College programmers will tell you that bands and labels call them all the time. They want to get on the air on campus. It’ll help them fill clubs and other performance venues, it’ll help sell t-shirts and other paraphernalia, and it might even move a few CDs and legal downloads. The exposure is worth far more than the pittance all musicians other than those already famous are going to receive from royalties. And all the recording industry can think to do is panhandle the limited student fund for $500? Pathetic. 

NABEF to Honor Johnson & Johnson

New Jersey’s own Johnson & Johnson will receive the first Corporate Leadership Award from the NAB Education Foundation (NABEF) during the 12th annual Celebration of Service to America Awards on June 14, at the Hyatt Regency Washington on Capitol Hill. William C. Weldon, chairman and CEO will be on hand to accept the inaugural award, which recognizes non-broadcast businesses that exemplify an extraordinary focus on community service and corporate social responsibility. "Johnson & Johnson has proven to be a corporation truly dedicated to the overall health and well-being of people across the world," said NABEF President Marcellus Alexander. "The NAB Education Foundation is pleased to present them with the very first Corporate Leadership Award -- an honor Johnson & Johnson fully deserves given its ongoing commitment to global healthcare." With a nearly 125-year track record of putting the needs and well-being of people first, Johnson & Johnson has built a reputation as a company dedicated to making people healthier and safer. Mr. Weldon, who was elected to the Johnson & Johnson Board of Directors in 2001 and named to his current position in 2002, will be accepting the award on the company's behalf. Among his outside activities, Mr. Weldon is a member of the Board of Directors of JPMorgan Chase & Co., Chairman of the CEO Roundtable on Cancer, Vice Chair of The Business Council and a member of the Sullivan Commission on Diversity in the Health Professions Workforce. The Celebration of Service to America Awards are sponsored and produced by NABEF with major support from Bonneville International Corporation and the National Association of Broadcasters. Details about the Celebration of Service to America Awards are available at www.nabef.org/ServicetoAmerica.

FCC Wants a National EAS Test…It’s Only a Test

The Commission has issued a Notice of Proposed Rule Making, proposing to conduct a national test once a year.  Stations would be given at least two months’ advance warning that the test was coming but would not be told the exact time and date.  Every EAS participant would be expected to air the test, to log it, and to provide the test results to the FCC know within 30 days. The EAS is capable of both national alerts and alerts restricted to a smaller area, such as one state.  If a national alert is received, all stations must cease normal programming and either (a) put the alert on the air or, if they can’t put it on the air, (b) shut down.  Retransmission of smaller area alerts is optional on the part of the licensee. If the test was not received or retransmitted, a station would have to find out what went wrong, fix it, and tell the FCC about it. Wise licensees will want to make sure that their equipment is operating correctly, that no one kicked the plug out of the wall, and that they can receive the required two stations they are supposed to monitor.  One thing in particular to check is whether your encoder/decoder requires a Federal Information Processing Standards (FIPS) location code in order to respond to a message.  That code identifies the geographic area to which an alert applies.  A nationwide message might not have one, and some decoders are known to ignore messages with no FIPS Code. 

BFA Announces 2010 Ward L. Quaal Pioneer Awards

The Broadcasters Foundation of America has announced the recipients of the 2010 Ward L. Quaal Pioneer Awards, to be presented during the National Association of Broadcasters (NAB) Show on April 14 in Las Vegas. This year, the BFA has selected six individuals with highly distinguished careers:  Kerby Confer, owner, Forever Broadcasting; Eddie Fritts, Chairman of the Fritts Group and former President and Chief Executive Officer of the NAB; Wade H. Hargrove, Esq.,  Partner, Brooks Pierce, McLendon, Humphrey & Leonard, LLP; Hal Jackson, legendary air personality; I. Martin Pompadur, renown global media-industry executive; and Bruce T. Reese, President and Chief Executive Officer, Bonneville, International. The Pioneer Awards are given annually in recognition of overarching career contributions to the broadcast industry and the community at large, and are named in honor of iconic broadcaster Ward L. Quaal. The awards ceremony will take place during the Foundation breakfast at the Bellagio Hotel. The Ward L. Quaal Pioneer Awards are underwritten by the Hubbard Broadcasting Foundation and the McCormick Foundation.  The breakfast, which is complimentary to all, is sponsored by the National Association of Media Brokers (NAMB), Frank N. Magid Associates, and Arbitron.  Advance registration is requested by April 2 by calling (212) 373-8250 or sending an email to info@thebfoa.org. 

Poll Finds Kean is N.J.'s Favorite Governor

In a popularity contest of sorts, former Gov. Thomas H. Kean easily retained his No. 1 ranking among nine current and former New Jersey governors, while former Gov. James E. McGreevy still ranked dead last, according to a new poll. Tied for second place were current Republican Gov. Chris Christie and former Democratic Gov. Richard Codey, who as state Senate president succeeded McGreevy after the latter's resignation in 2004. Kean also ranked first in an identical 2006 poll and has increased his lead since then, according to the Monmouth University Polling Institute in West Long Branch. Patrick Murray, director of the Monmouth University Polling Institute in West Long Branch, said: "Tom Kean is basically unassailable as New Jersey's most beloved governor. I think nobody's ever going to knock him out of that spot the way it stands." What is interesting "is how Jim Florio has basically moved up the table a little bit," Murray said. "I really do think that there's probably a bit of a reappraisal of his administration right now, considering the (past) 15 years of borrowing and budget gimmicks."(Bates, Gannett) 

Suddenly Chavez

It’s the latest show that airs anytime Hugo Chavez wants. Tom Taylor had an interesting take about Uncle Hugo’s latest exploits on radio in Venezuela. “When you're the virtual dictator and you have the Venezuelan National Radio facility at your disposal, why not order them to give you a show named, literally, "Suddenly Chavez"? (It sounds better in Spanish.) He already has a lengthy Sunday TV show, and he can talk almost as long as Fidel Castro used to. Now he formalizes his habit of dropping in on the national radio facility by instituting the standby title "Suddenly Chavez." ("1984" writer George Orwell would appreciate the name.) As the Wall Street Journal observes, Chavez has previously ordered other stations to carry his addresses - and punished those who didn't. Not to worry…that could never happen here. 

Happy Valentine’s Day to all of our hopelessly romantic New Jersey Broadcasters!

QuickNews is provided for general information purposes only and should not be relied upon as legal or tax advice pertaining to any specific factual situation. Legal and tax related decisions should be made only after proper consultation with a legal professional of your choosing.

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