NJBA Weekly Newsletter Friday, February 27^th 2009 

The Battle of Capitol Hill

The battle heats up on Capitol Hill this week between freedom of speech and freedom to tax; The fight against the fairness doctrine and Royalty tax goes on, with major recording artist visiting the Hill to woo and wow vulnerable star-struck members of Congress susceptible to the specious arguments of the tax’s proponents . This irony goes on in spite of radio’s long-standing symbiotic relationship with the recording industry.  Does the term penny wise and dollar foolish ring a bell?  And nothing less than the First Amendment remains up for grabs. The NJBA supports the Broadcaster Freedom Act introduced by Senator DeMint (R-SC) and we continue to work with our Congressional delegation to pass this legislation. DeMint’s S.34 forbids the use of any stimulus monies to re-impose the Fairness Doctrine by the FCC.  The anti-performance royalty “Local Radio Freedom Act” in the House now has over 126 co-sponsors in the House.  

NJBA Needs to Know

All NJBA Members who enjoy special relationships with New Jersey state and federal lawmakers need to contact Mary with an updated record of those relationships to help us fight for your rights as broadcasters. There are too many critical issues facing New Jersey broadcasters this year to miss any opportunity to explore every resource available to us in order to preserve our great industry and protect it from higher costs, restrictive legislation and superfluous regulatory intrusion. Please help us help you and your fellow broadcasters in this worthwhile effort. 

Localism Rules Would Hurt NJ Stations

The FCC has proposed to substantially increase regulatory burdens on local broadcasters regarding new localism rules proposed this year regarding the location of a station’s main studios and the unattended operation of stations. These regulatory changes could cost broadcasters millions of dollars to relocate their main studios and to hire additional staff for stations to fulfill this round the clock staffing requirement. As usual, the 24 hour duty rule will have precisely the opposite effect of its intented objective, that is, these requirements would strain a station’s programming resources and other services that directly benefit local views and listens. It will impose a significant hardship on many New Jersey stations, especially smaller ones, who would have to eliminate their local news and information programming, crippling what is left of the Garden State’s news reporting services.

FDIC Issues Warning to NJ Businesses on Bad Checks

Counterfeit checks bearing the name of Lakeland Bank, in Jefferson’s Oak Ridge section, are being circulated, according to a notice sent out today by the Federal Deposit Insurance Corp. The FDIC notice did not say how many fake checks have been reported, or what the potential losses might be. The counterfeit items display the routing number 021205376, and display a security feature embedded within the top and bottom borders, according to the FDIC, which said Lakeland reported the problem to the government agency.  

Another Shake Up at Arbitron

Arbitron’s CEO Michael Skarzynski continues to purge the ratings giant by eliminating his technology and research president Owen Charlebois, along with the position of sales and marketing president currently held by Pierre Bouvard. Unlike Charlebois, who will be leaving the company in March, Bouvard will stay on as Executive Vice President of sales. More changes expected to come. 

Clear Channel to Verizon: Can You Hear Us Now?

Clear Channel and Verizon have struck a deal whereby Verizon’s wireless customers will now have the ability to hear 14 Clear-Channel programs on their cell phones via the iheartradio portal, which will most likely cause Clear Channel to increase content and programming for this new radio outlet. Radio apps on cell phones like the Storm and iPhone remain the most wanted application for all hand held devices. 

Garden State has a New Assemblyman

Warren County freeholder John DiMaio (D) was elected to the only vacant NJ Assembly seat this week. The NJBA wishes Assemblyman-elect DiMaio “Good Luck” as New Jersey’s newest state legislator.  

Broadcasters Be Warned: Do Not Tape Telephone Calls

A recent FCC decision makes the recording of telephone conversations, including even temporary captures for a digital delay system, without the party’s informed and intelligent consent to being recorded, illegal and actionable. The FCC has been at work enforcing actions against broadcasters who violate this ruling with the unauthorized broadcast of recorded telephone conversations. Heavy fines and penalties have been issued against seemingly inadvertent and innocuous violations of this recent FCC pronouncement. However, this prohibition would not apply to station callers who initiate a call to the station, which is broadcast on the air.

Philly Paper Files Chapter 11

The Philadelphia Inquirer has felt the economic pinch hitting all media hard. It filed for Federal Bankruptcy protection his week in an effort to restructure over $390mm of debt owed by its parent company. Radio and television sales people see this as an opportunity to gain new or increased advertising dollars from the paper’s advertisers, in spite of assurances that the Chapter 11 filing will not interrupt local operations.

Better Late than Never?
Major marketers like General Motors and Anheuser-Busch are telling radio and television stations to wait as long as 120 days to be paid for commercials airing to promote their products. These mega companies are essentially forcing their advertising vendors into financing their media buys at no interest for 120 days, hurting small and struggling stations with already strained cash flow.

New COBRA Rules Require Prompt Action

The Health Insurance Assistance for the Unemployed Act of 2009 (the “Act”) imposes significant new COBRA premium and notice requirements on employers, insurance companies and plan sponsors. The Act enables certain terminated employees to obtain COBRA coverage (for themselves and their beneficiaries) by paying only 35 percent of the otherwise applicable COBRA premium. The federal government subsidizes the other 65 percent, but employers, insurers and multi-employer plan sponsors must facilitate the subsidy. The premium reduction is effective on March 1, 2009, and employers must act quickly to implement the required changes. In addition, employers must send revised COBRA election notices to all employees (and qualified beneficiaries) who have been terminated since Sept. 1, 2008, even if they are not eligible for premium assistance. Please check with you legal counsel for all requirements. 

Univision Radio Listeners Pledge Millions to St. Jude's

Univision Radio listeners pledged more than $6 million to help the children battling serious illness at St. Jude Children's Research Hospital during the annual Promesa y Esperanza Radiothon. Listeners in Univision markets including New York and New Jersey called in with pledges during the Radiothon, while Univision Radio personalities talked with St. Jude patients in radio booths across the country. Music stars including Luis Fonsi, Fanny Lu, Chenoa, and Monte Rosa, as well as Univision personalities, who also joined in the campaign. Congratulations to Univision on a job well done. 

Don’t Mess with the Boss or New Jersey

New Jersey Attorney General Ann Milgram forced a settlement with Ticketmaster after Congressman Pascrell (D-NJ) and the Boss complained about customers being re-routed to higher priced ticket services during their sale of tickets to Bruce Springsteen’s latest concert in New Jersey. Nearly 2,200 people complained to the state this month after they encountered problems trying to buy tickets to see the Garden State's favorite son at the Meadowlands. But the Boss, with the help of Congressman Pascrell, got NJ’s top cop on the case and resolved the issue in quick fashion.

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.