Vision Statement: NJBA - leader of the New Jersey Broadcasting Industry, is a fiscally sound organization with clear direction, a stable and diverse membership, and the ability to effectively support, represent, and achieve success for its members. NJBA Weekly Newsletter for Friday, April 30, 2010 Free EEO Webinar May 11th for NJBA Members The NJBA is providing its members with the opportunity to participate in a special EEO Webcast hosted by the MAB with Davis, Wright, Tremaine’s Brendan Holland on May 11th, from 1PM-3PM. The Webcast is free to all paid NJBA members and may be accessed by contacting Mary@njba.com for authorization pass codes to view this informative presentation. This paid NJBA member benefit will highlight and detail the FCC’s current Equal Employment Opportunity rules. With annual EEO public file reports due for stations by June 1st, and the next broadcast station license renewal cycle just around the corner in 2011, stations need to make sure that they are familiar with the FCC’s EEO rules and are taking all the steps necessary to ensure that they stay out of trouble. EEO continues to be a hot issue for the FCC, and one that draws many fines from the Commission, both at license renewal time and in connection with the ongoing random EEO audits that the FCC conducts several times a year. With the changes in ownership, personnel, and hiring efforts that inevitably occur at stations over time, it is important that station owners, managers, and hiring personnel are on top of the FCC’s rules. This session will provide a primer on the FCC’s Equal Employment Opportunity rules, including the outreach required for the opening of jobs at the stations, the non-vacancy related activities that stations should be engaging in, and the recordkeeping requirements to make sure you keep all the necessary documents to support what the station did. The goal of the session is to refresh your understanding of the rules, provide insight into the FCC’s enforcement and guidance in the past few years, and highlight some common pitfalls. Please take advantage of this free member benefit and join us on May 11th for this informative session. Mid-Atlantic Broadcasters Conference Registration Info We’re getting ready for a great Broadcaster Conference this year! Please make sure to book your room at Trump Plaza for our conference by May 17, 2010 to take advantage of our special reduced room rate. Be an NJBA “Early Bird” and register/book by May 10th and be eligible to enter a drawing for a special prize to be awarded at our Beach Party Opening Reception on Tuesday night. It’s gonna be fun! Simply click https://resweb.passkey.com/Resweb.do?mode=welcome_ei_new&eventID=2500996 to make your reservations on online or call 1-800-677-7378 and mention the NJBA Conference. Registration for our conference opens this Monday, May 3, 2010. Please note: This year, all registrations will be processed at the Broadcast House. You can either download a copy of the registration form from our website or call the NJBA office 1-888-657-2346 and request a copy. See You on June 8th and 9th at Trump Plaza in Atlantic City This year’s conference will be jam-packed with super speakers, great educational seminars, wild prizes, and a fun filled Awards Luncheon featuring our Best of the Best winners and many notable policy makers and industry leaders. Check out our schedule of activities on our web site and make sure you get “tuned in” for this must attend event by registering early for all of your activity selections today. More Proof NJBA is Right on Failing EAS in Garden State New Jersey’s EAS went haywire Wednesday night during Amber Alert activation. Inside Radio reported that just hours after New Jersey state officials announced new protocol for issuing Amber Alerts, an actual activation went terribly wrong Wednesday night. The missing child was found unharmed, but the system mishap may serve as a wake-up call that the state’s aging EAS needs a major overhaul. Several stations around the state say they received their first activation about a missing child in Elizabeth, NJ at 7:03 pm. It was followed by some barely-audible details of the missing child. Unsure whether the EAS was properly activated, it appears the New Jersey State Police sent the alert seven more times over the next hour. For some stations, it meant their station was transmitting dead air, strange tones or the scratchy audio about a missing child. The final message was beamed at 8:05 pm. Engineers say they were amazed by the amount of log paper that scrolled out of their EAS boxes in the matter of an hour. Not only were New Jersey stations affected, but also several in Philadelphia and New York that voluntarily send the Amber Alerts. It wasn’t just radio either. Television and cable systems were also affected with bottom-of-the-screen crawls that provided no information. A New Jersey State Police spokesman told Inside Radio they’re still trying to piece together what went wrong, and whether the glitch possibly occurred at the public broadcaster New Jersey Network, which distributes the state’s EAS messages. Human error may also have been a factor. NJBA Has Been Warning Officials About EAS Trouble for Two Years The New Jersey Broadcasters Association has been warning state and federal officials that the state’s EAS was in crisis for several years. In a filing with the FCC last month, NJBA president Paul Rotella said his state’s EAS was “archaic and prone to failure” and in “urgent need” of major repair. “Sometimes messages go through, the other times they do not,” he told the Commission. Broadcasters hope the latest high-profile failure will help convince the state to spend the $300,000 needed to modernize the system. “This horrible failure highlights our call to provide comprehensive training and SOP for our state EAS methodology, as well as a reliable replacement for our antiquated EAS in New Jersey”, said NJBA President Paul Rotella. “Broadcasters take their roles as first responders in times of crisis very, very seriously, and we look upon this mission as a sacred trust. But, it is entirely voluntary, and snafus like this make it hard to keep optimism and support of this program high. We want to be a part of the solution, as always, and we will continue to work with our dedicated law enforcement partners and the state to correct this intolerable state of affairs” The NJBA started an EAS initiative with the NJSP, FEMA and FCC late in 2008 and we are making progress in securing a new EAS for our state. Last night, however, was an unfortunate product of poor equipment and human error. Rotella concluded: “Wednesday night’s failed AMBER Alert underscores the urgency of getting a new, modern and reliable EAS and comprehensive operating procedures in place now, before inaction and ignorance leads to increased tragedy, and in the case of AMBER Alerts, God forbid, perhaps a dead child.” Senator Nelson Minding the Store Against the P-Tax Regular readers to QuickNews know we have been on point warning the public regarding the Performance Tax and its nefarious consequences and intellectually disingenuous proponent. Recognizing a very popular legislative mechanism some less than candid legislators can use to get unpopular legislation enacted into law is to find a way to attach it on to some must-pass legislation, such as an appropriations bill. As RBR-TVBR astutely points out, the good news for broadcasters is that the chairman of a key Senate Appropriations subcommittee came out strongly against attaching the Performance Rights Act to any such bill. Ben Nelson (D-NE) chairs the Legislative Subcommittee, which oversees the Copyright Royalty Board, which would administrate PRA if it ever makes it into law. He addressed PRA while discussing CRB’s 2011 budget. “As a brief aside, I continue to hear from a number of organizations concerned about the performance royalties bill that would affect local radio stations,” said Nelson. “I make this brief note here only because of the Copyright Royalty Board's potential role under this legislation. Along with many of my colleagues I continue to oppose this bill and would not support an attempt to attach such legislation to an appropriations bill whether it is this one or any of the others.” The NJBA agrees with RBR-TVBR’s observation: We know that PRA could not survive on its merits in the current House of Representatives, due to the plurality of supporters of the Local Radio Freedom Act. But, there is no such obvious headcount available in the Senate. We know 27 support LRFA, but we don’t know how many support PRA or are simply not yet on the record one way or the other. But it is good to know a key legislator is minding the goal against any attempts to use legislative trickery to slip this blatantly un-American bill through. Thank you Senator Nelson! Please keep fighting the good fight against this horrible bill. FTC Seeks Greater Control of Radio Advertisement Content New financial reform legislation could have a direct consequence on radio and other media. Broadcasters, advertisers and agencies are working to stop giving the FTC new power to regulate commercials. Inside Radio reports that the version already passed by the House includes a major expansion of Federal Trade Commission powers to police advertising content. Association of National Advertisers EVP Dan Jaffe says it amounts to an “aiding and abetting” provision that says if a station allows a commercial deemed deceptive or unfair to be heard, the FTC could impose civil penalties against the broadcaster. “The FTC says they won’t do it, but the language is certainly broad enough to,” Jaffe says. American Advertising Federation EVP Clark Rector says financial ads are just the beginning, pointing to the FTC’s efforts to dictate which foods can be advertised to anyone under 18 years old. “The standards are so strict they would virtually ban the advertising of many familiar products including yogurt, vegetable soup, peanut butter and most breakfast cereals,” Rector tells members. “All media would be subject to the ban, including television and radio, newspapers and magazine, outdoor and online.” More than two dozen trade groups have launched a campaign to block what they believe is an effort to transform the FTC into what some are calling a “national nanny.” Expanded FTC advertising oversight slipped past many, buried in the 1,705-page bill where debate was more focused on creation of a new consumer protection agency. Radio’s mentioned on page 987. This is the problem with thousand page bills. It is amazing to think that the entire Constitution of the United States is set forth on only 6 pages. (Seven, if you include the Bill of Rights! Yes, the entire Bill of Rights was set forth on one page!) Makes you wonder what we are doing to ourselves, doesn’t it? That is why the warning emblazoned on the National Archives building in Washington should be heeded: “Eternal Vigilance if the Price of Liberty”. NJBA President Meets with Administration Officials NJBA President Paul Rotella met with several State Officials this week to solidify broadcaster’s opposition to any new tax on advertisements in New Jersey. Advertising is the sole source of revenue for broadcasters. An ad tax is treacherous since it would undoubtedly cause a reduction in advertising. A reduction in advertising would inevitably result in a loss of jobs and a decreased ability to provide quality content and programming. Advertising is the engine that fuels the economy. Less advertising means fewer sales. Fewer sales mean reduced revenue and fewer jobs. Fewer sales also result in less sales tax revenue for the state. The Christie administration has confirmed the Governor’s opposition to any new tax on radio and TV advertisements and the NJBA is very grateful to the Governor and his team for fundamentally recognizing the negative effect this type of tax would have on New Jersey’s economy and the significant loss of jobs attendant to such a measure. What the Court Giveth, the Congress Taketh Away The Senate and the House have introduced the promised legislation in response to the Supreme Court’s Citizens United decision released earlier this year. That decision overruled the McCain Feingold law which limited corporations, unions and third parties from buying “election communications” within 30 days of an election. Sen. Schumer (NY) and Rep. Van Hollen (MD-08) introduced long-awaited campaign finance reform legislation in response to the January Supreme Court ruling in Citizens United v. FCC. The new law would re-impose these limitations on campaign contributions and require that the ads reveal their top funding sources. Also the CEO of the company paying for the ad would have to appear in the ad and state that “I approve this message.” In addition the new legislation would extend the Lowest Unit Rate beyond just candidates and make it applicable to time purchased by political parties and committees. In short, almost all time charged relating to political candidate advertising would be at the lowest unit rate. Any language that would expand LUR is a concern, and we are engaged in the development of this legislation. The Democratic leadership has said their goal is to have the new legislation passed by July 4th or the next 60 days. The NJBA will oppose this wrong-headed legislation and we will continue to keep you updated on any developments. THE TRENTON REPORT: From the Marcus Group Waiting for Justice: Much of the focus in the Executive and Legislative Branches in Trenton this week is on the third branch of government, the New Jersey Supreme Court. Justice John Wallace's initial seven year term expires on May 22 and Governor Christie has not tipped his hand on whether he will reappoint the Court's only African American Justice or whether he will replace him. Governors generally re-nominate and the Senate generally easily confirms sitting Justices for life tenure. However, the Governor is being lobbied heavily by conservative Republicans and Tea Party folks to look for someone more in line with their views. Anticipating a nomination from the Governor, the Senate Judiciary Committee is poised to meet on May 13 to begin the confirmation process. If the nominee is not confirmed by May 22, Justice Wallace would depart and the Court would function with 6 Justices. And, on May 25 the Court is scheduled to hear a case involving the campaign by the Tea Party to recall United States Senator Bob Menendez. So, all political eyes from Trenton to DC are on Governor Christie and his decision on this Supreme Court seat. (News Flash: Governor Christie ruled out a White House run in 2012. His reason? “I’m not crazy” the busy Gov quipped.) Great Reception for NAB President Smith on Hill The Senate Small Business Committee held its hearing to examine the National Broadband Plan and its impact and opportunity for America’s small businesses. The committee heard from government witnesses including FCC Chairman Julius Genachowski, RUS Administrator Jonathan Adelstein, and representatives from NTIA and the Small Business Administration. Those testifying on behalf of industry included witnesses from the American Cable Association, Steve Largent from CTIA, and Senator Smith for NAB. Gordon’s testimony was well received by his former colleagues and was a strong defense of local broadcasters, the critical role they play in communities, and how they would be hurt economically by the broadband plan proposals like spectrum fees and forced spectrum reclamation. Senator Smith also addressed non-broadband plan proposals like retransmission consent. He offered a defense of the current system and outlined the economic harm to local broadcasters that would come from meddling in these private, marketplace negotiations. FCC Proposes Modernization of Antenna Light /Paint Rules Pike & Fischer reports that the Federal Communications Commission April 20 released a Notice of Proposed Rulemaking seeking comment on revisions updating and modernizing the Part 17 rules governing the construction, marking, and lighting of antenna structures. The Commission declared that the proposed revisions "are intended to improve compliance with these rules and allow us to enforce them more effectively, helping to better ensure the safety of pilots and aircraft passengers nationwide" and to "remove outdated and burdensome requirements without compromising our statutory responsibility to prevent antenna structures from being hazards or menaces to air navigation." Marconi Awards Nominations Open Tomorrow Nominations are only open for one month – May 1 through May 31. Tom Taylor reminds us that there are the usual categories, by market size and/or format. Not to mention personality of the year by market size, network/syndicated personality and the coveted “Legendary station.” Finalists will be announced in July and winners will be chosen by the “NAB Marconi Radio Awards Selection Academy”, which I believe is at least a new name. The “academy” is made up of GMs, PDs, regional executives, owners, consultants and former radio executives. Susan Platt (SPlatt@nab.org) is accepting applications for membership in the Academy. Nominations for the 2010 Marconi awards for excellence are online here. Winners to be announced at this year’s RAB/NAB Radio Show in Washington, D.C., during the NAB Marconi Awards dinner on Thursday, September 30. Good luck to our New Jersey Broadcaster nominees! Save Money on Electric Bills with APPI NAB members in New Jersey can learn more about the possibility of electricity savings through NAB member benefits partner Affiliated Power Purchasers International (APPI). APPI is an independent utility consulting firm with more than 13 years of consulting experience in deregulated states for energy. APPI is conducting a free, one hour webinar providing information about the evolving deregulated electricity market in your state and what decisions you can make to prepare for rising costs. Other valuable ideas for reducing costs will be presented. This free Webinar is set for June 20th at 9:00AM. To register for this event, please visit: http://www.appienergy.com/appi-webinar-registration.
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. Broadcast House, 348 Applegarth Road, Monroe Twp., NJ 08831 (888) 657-2346 FAX: (888) 652-2329, njba@njba.com
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