NJBA Weekly Newsletter Friday, March 13, 2009

New NJBA Radio Spots Trumpet NJ Radio

As promised, the NJBA has begun produced and distribution of a series of radio commercials for our members use to promote New Jersey’s vibrant free over the air radio. The new campaign is designed to heighten awareness of NJ radio’s unparalleled and powerful marketing impact, commercial sponsorship opportunities, diverse entertainment and vital information delivery across the Garden State. The station-generic 60 second spots are available to NJBA members and can be downloaded directly from our web-site (www.NJBA.com) under membership services. Any member that would like to have a customized spot cut should contact NJBA President Paul Rotella at 609-860-0111 to arrange for a custom tag highlighting their station. More spots are in production and we hope to have new content delivered to you on a quarterly basis. Suggestions and comments are welcome. The NJBA would like to thank our Chairman, Andy Santoro and his staff for making studio time available to produce these spots (as well as our popular PEP spots) and especially recognize Matt Ryan of NJ 101.5 for his dedicated service and generous donation of his time and production talents to help his fellow broadcasters.

NJBA Pushes for New EAS for the Garden State

The NJBA has filed a formal appropriation request with Congress to obtain funding for a new Emergency Alert System to serve New Jersey. The reason New Jersey is in urgent need of a new EAS system is that the one currently in place is archaic and simply doesn't work very well. (Sometimes the messages go through, and other times they don't.) As first responders in the event of such an emergency, New Jersey Broadcasters are particularly concerned with respect to the adequacy, obsolesce and deterioration of the EAS apparatus currently in place in state, and its potentially catastrophic failure to act in response to a large regional, statewide, or national emergency. NJBA President Rotella has initiated and participated in numerous meetings with the NJSP and key legislators to bring this issue to the fore. Special thanks to NJBA member Rich Archut, who serves as the chairman of the New Jersey Emergency Communications Committee (NJSECC), the continued support of NJN, the National Weather Service, and especially the NJSP and Bob Schroeder of the NJOEM for their leadership and support of this NJBA initiative.  

First Quarter Issues/Program Lists must be filed by 4/10!

The FCC requires each station to maintain, and place in their public inspection file, a Quarterly List which reflects the “licensee’s most significant programming treatment of community issues.” While the FCC gives local stations discretion to determine the issues facing the communities served by the station, it is best to err on the side of caution and “over-inclusion” of items to demonstrate their compliance with this public interest obligation. Obviously the Quarterly List should reflect a wide diversity of subject matters and cover all three months of the reporting quarter. The FCC is placing renewed emphasis on this requirement and it is one of the most scrutinized items of your license renewal application.

The Trenton Report from The Marcus Group

Governor Corzine delivered a bleak budget message on Tuesday citing a projected $7 billion shortfall. Some of his proposals for filing the gap that may fall upon broadcasters includes extending the 4 percent surtax that was imposed on businesses in 2006 as part of their overall corporate business tax liability. This surtax was due to expire at the end of the 2009 fiscal year. The Governor called for a one year extension of this surcharge and an additional $270 million for NJ’s Unemployment Insurance Trust Fund, which needs approximately $500 million to remain solvent. The deficit in the fund is expected to trigger in July an automatic payroll tax increase estimated at around $75.00 per employee per year. The good news is that, so far, there is no talk of extending the sales tax to broadcast advertising. Also, the Silver Alert bill with amendments sought by the NJBA to make the program voluntary and not utilize EAS was released by the Assembly Appropriations Committee on Monday.

InvestNJ Application Now Available

The new InvestNJ Business Grant Program application is now available at the New Jersey Economic Development Authority (NJEDA) website, and must be completed on-line. This Program establishes a two-year incentive program within the New Jersey Economic Development Authority (EDA) and it will provide $120 million in grants to help stimulate in-state job creation and capital improvements. A summary of the numerous benefits of the program can be found at the NJEDA website.

Kay is New PD at WDHA/Morristown

Curtis Kay has been named Program Director at Greater Media's Rock WDHA in Morristown, NJ. He joined the station as an air personality in 1980 and has been APD since January 2007. Kay will succeed PD/mid-dayer Tony Paige, who exited last September. 

More Lawmakers Side with Broadcasters Against New Tax

Broadcasters continue to advocate in opposition to RIAA-backed legislation that would levy a new fee, or "performance tax," on local radio stations for music aired free to listeners. In mid-February, a House resolution was introduced by Reps. Gene Green (D-TX) and Mike Conaway (R-TX) that expressly opposes the introduction of "any new performance fee, tax, royalty, or other charge" on local radio stations. As of this writing, 144 lawmakers have signed on as co-sponsors of the resolution. NAB Media Relations continues to promote the outpouring of praise for radio airplay by musicians. In the last month, Country stars Brad Paisley and John Rich both recognized the positive impact local radio has played in their careers, a point we will continue to emphasize later this month with NJBA’s visit to Capitol Hill later this month. 

NJBA Speaks Out Against White House Slur of Radio

Association President Paul Rotella immediately responded to the White House Press Secretary’s comments that he doesn’t even own a radio, with a strong and clear message that radio is not only a growing medium, it is of vital national importance, especially in a post 9/11 America. Rotella issued a statement that Radio is how most Americans get vital information in times of emergency and national or local crises. In addition to the significantly growing radio audience across the nation, iPhone and Verizon Radio is the most popular application offered by the mobile phone industry.

Nielsen Enters Radio Ratings Business with Gusto

Nielsen is taking on Arbitron and is measuring radio listenership in small markets around the United States. The new ratings service started last week and will continue for eight weeks. This is the first serious challenge to Arbitron’s market dominance since the 1960s. Nielsen’s ratings results are scheduled to be released in mid-August. Nielsen claims that its pilot study in Kentucky “worked like a Swiss watch.” Meanwhile, Arbitron’s CEO announced the relocation of his company’s headquarters from Manhattan, (which will serve as a sales and customer sales center), to their Columbia, Maryland campus.

FCC Launches New Investigation to Protect Minors

The FCC initiated a new inquiry into new technologies to protect children from harmful content pursuant to the Child Safe Viewing Act of 2007. The FCC is requesting public comment on this initiative to be filed with the Commission no later than April 16^th.

What’s the Next Assault on Broadcaster Rights?

Fairness Doctrine? Royalty Tax? White Spaces? 24/7? Beware of the FCC’s increased efforts to increase localism requirements as they apply to the locations of stations’ main studios and the unattended operation of stations. This would force stations to hire (or fire, depending on the way things go) additional staff to meet the new regulations. The re-imposition of these burdensome, arcane rules which were found to be ineffective, unnecessary and constitutionally suspect back in the 1980’s, would cripple already struggling New Jersey radio stations and the NJBA will vigorously oppose  these new regulations.

More Associations Join NJ in Postponing Conferences

The Oregon Association of Broadcasters has “postponed” their annual Fall Conference for 2009.  We will be co-hosting the Conference with the Washington State Broadcasters Association next fall. This comes just one week after Georgia announced its cancellation of its convention this year.  That’s in addition to NY and CBA. FYI: Indiana, Washington, and Nevada have suspended their conventions for some time now.

Prez Nominates another New Jersey Native

President Obama has nominated Princeton University Economics Professor Alan Krueger to serve as assistant secretary of economic policy at the U.S. Treasury.  If confirmed by the U.S. Senate, Krueger, a Princeton resident, will lead the Treasury department's office of economic policy, which analyzes domestic and international economic trends and helps develop economic policies.

Keep Your NJBA Alternate Broadcast Inspection Up To Date!  Contact the NJBA 1-888-657-2346 for more information. 

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.