NJBA Weekly Newsletter Friday, October 9, 2009

Radio Saved Lives, Thanks to the Emergency Alert System

The quake-induced Tsunami that swamped Samoa hit during morning drive, while a local on-air personality (Joey Cummings) was broadcasting at Pago Pago’s “93KHJ.” Thanks to station owner Larry Fuss' visionary lobbying efforts, Samoa has an American-style EAS system. But what’s frustrating to Larry is that he couldn’t persuade the bureaucracy to give him a roof-top backup generator. So when 93KHJ ran out of battery power (and the Pago Plaza’s ground-floor diesel generator was swamped), it went silent. But it was at least able to get the word out when the tsunami hit, saving thousands of lives. If government officials need any “stimulus” to approve funding to restore New Jersey’s failing EAS sooner, rather than later, they should look at the tried and true results that a broadcast EAS warning has produced in Samoa. Additionally, some big states like Pennsylvania and New Jersey are still without key “PEP”, or Primary Entry Point, stations. NJBA President Paul Rotella has had several meetings with key lawmakers and administration officials at the FCC, FEMA and DHS in Washington making our case that we need to have this unsatisfactory condition addressed immediately before a catastrophe fatally hammers home the point. Congratulations to our broadcast cousins in Pago Pago for their insightful leadership, professionalism and courage. 

New Jersey Needs a Working EAS and PEP Station Now!

The recent Tsunami in Samoa is an amazing example of how vitally important a fully functional EAS is to the citizenry of the Garden State. Radio also used something even older – common sense and a microphone. If your station has a real life success story about how your broadcast team helped save lives and get emergency messaging out to the communities they serve, please send the details of these life saving efforts to the NJBA at protella@njba.com . It will help your NJBA leadership team make an even more compelling argument in Washington. Thanks!

Performance Tax Moves to Senate

Quick News doesn’t want to say “we told ya so…but” unfortunately, there are still some unenlightened   Senators and Congressmen pushing for this wrongheaded measure on the Hill.  They won’t vote on it this week, but it’s part of this week’s markup session. S. 379 is high on Pat Leahy's agenda, and the bill has sponsorship from Orrin Hatch, Dianne Feinstein and Chuck Schumer. This means another hurry-up skirmish for the NAB government relations force. Former Leahy Senate colleague Gordon Smith hasn’t started his new job running the NAB yet, and he can’t lobby the Senate even after he starts in November. But he could testify, if he were called as a witness at a future hearing. But watch out next week! The NJBA is very concerned the Performance Tax could be deviously inserted into another piece of “must pass” legislation (like the Health Care Bill) by sneaky proponents of this legation.  To be sure, the fight is not over. 

FCC Suspends Nov 1^st Biennial Ownership Filing Date

The Commission issued a Public Notice suspending the requirement that all commercial broadcast licensees file a biennial Ownership Report (FCC Form 323) by November 1.  (Non-commercial educational stations were still required to file FCC Form 323-E by the original October 1, 2009 filing date).  Normally biennial reports would have been filed October 1, but this date was delayed until November 1 on the expectation that the Office of Management and Budget would have approved the new report.  That new form has run into problems and thus it is highly unlikely there will be any new report available by that date.  In fact, it is estimated that it will be a few months before any new report is adopted. However, in the meantime, the old report will be still required in certain instances. These include Ownership Reports which have to be filed within thirty (30) days following the closing on the acquisition of broadcast properties or the issuance of a license for a new station. The NJBA will continue to monitor this situation and alert you as to when the new biennial Ownership Report is adopted and the date by which it will be filed. 

Don’t Let This Happen to You

The FCC's Media Bureau issued Notices of Liability (NAL) for $10,000 each to three different owners over public file violations. Auburn Broadcasting gets two NALs, for WSFW-AM/Seneca Falls, NY, and WAUB-AM/Auburn, NY, for missing issues/programs lists in its public file. Additionally, Lake Country Broadcasting received an early Christmas present as well for a $10,000 NAL for missing issues/programs list in its renewal application, and Linfield College also received a $10,000 NAL for missing quarterly issues/programs lists, also revealed in its renewal application. Please make sure you are thorough and use the tools NJBA offers you through Alternate Inspection Programs and Broadcaster One Source. More information on these programs is available through the NJBA and brochures will be included in our membership renewal kits, which will be sent out later this month.  

Watch Out: Tougher New FTC Rules Kick in Dec 1^st

The Federal Trade Commission (FTC) has issued final changes to its Guides Concerning the Use of Endorsements and Testimonials in Advertising. While advisory in nature, the new guidelines will reset standards of behavior that public relations, marketing and advertising professionals should adopt to avoid violating underlying laws against unfair competition and false advertising. The Guide changes make three key departures from previous guidance that could impact public relations practice:

(1) The FTC advises that "endorsers" as well as advertisers can be held liable for false or unsubstantiated claims or for failing to disclose material connections between the parties; (2) The Guides no longer offer the "safe harbor" whereby testimonials can be qualified by a "results may vary" disclaimer; Instead, advertisers will be required to say what users can expect; and (3) Regarding endorsements, the Guides specify that celebrities should disclose relationships with advertisers. The last time the FTC updated its rulebook was 1980.  Marketers will also need to disclose if they paid for a study cited in their commercial.  The rules kick-in December 1.

What Else is Washington Doing?

Two broadcast related bills were scheduled for markup on Thursday of this week in House Subcommittee. As of this writing, the House Energy & Commerce Communications Subcommittee will markup H.R. 1084, the CALM Act, introduced by Rep. Eshoo (CA-14) and cosponsored by 82 members. The Subcommittee will consider an amendment to H.R. 1084 which directs the FCC to regulate the loudness/volume of television commercials relative to the surrounding program.  QuickNews understands that this amendment will pass Subcommittee muster and be sent to the Energy and Commerce Committee for consideration by the end of this week.  The subcommittee will also consider H.R. 1147, the Local Community Radio Act, introduced by Rep. Mike Doyle (PA-14) and Lee Terry (NE-02) and cosponsored by 81 members.  The bill seeks to remove third adjacent channel protection for full power FM stations and allow many more low power FM operators in the FM band.  The bill was the subject of a hearing in June in which broadcasters expressed concerns over interference and the loss of listeners in a time of emergency.  As the bill has not changed in substance since the hearing, the NJBA and NAB remains opposed to the legislation.

Election Day is November 3^rd

Here are some important dates you need to be aware of in New Jersey:

Voter Registration – Deadline Oct. 13: In order to vote in the upcoming election, you must be registered in the county where you live. If you would like to cast a ballot for the candidate of your choice, but have not registered, don’t worry – you still have a little time. But, the deadline to register is Oct. 13^th, so don’t wait any longer to register.

Vote by Mail for the First Time – Deadline Oct. 27: Voting has been made more convenient and easier than ever for New Jerseyans who find it difficult to get to the polls. For the first time, you can vote by mail.  To be eligible, you must complete the Application for Vote by Mail Ballot, and mail the application to your County Clerk up to seven days prior to the election. The deadline is Oct. 27 to complete the Vote by Mail Ballot. A voter may also apply in person to the County Clerk until 3 p.m. the day before the election. Exercise your civic responsibility and vote on Election Day. A democracy only functions properly when our citizens vote. Good luck to all candidates!  

Internet Revenue Drops More Than Radio

A larger-than-expected drop in internet revenue came in the first half of the year. The Interactive Advertising Bureau reports online revenues dropped 5.3%, to a total of $10.9 billion. That compares to radio’s $7.6 billion in revenue during the first half of 2009. Of course, there is no good news in bad news, but the reports of radio’s demise have been greatly exaggerated. And, Radio got an unexpectedly good report card from ad giant Carat. Its forecasters report the medium is "holding up better" than most other media categories. Carat credits radio's "ability to drive strong reach and awareness." We agree!

FCC Chief Quotes “The Boss” in Speech on Net Neutrality

With a little help from the Garden State’s own Bruce Springsteen, FCC Chairman Julius Genachowski responded to a letter from 20 House Republicans asking that the Commission postpone a scheduled vote on proposed network neutrality rules. The Republicans believe a "thorough market analysis" should first be completed by the FCC as a means for deciding whether new rules are needed. In a speech Monday, Genachowski offered his support for network neutrality via a portion of his talk that played on several Bruce Springsteen song titles. Sounds like there might be a little Darkness on the Edge of Washington.

Copyright Royalty Fee Statement Form Due October 15^th

By this date, commercial and noncommercial webcasters and those simulcasting radio programming on the Internet must submit the Monthly Usage Statement of Account Form for the month ending August 31, 2009, even if the webcaster or simulcaster has not exceeded its minimum fee liability.  The form must be submitted to SoundExchange via e-mail, file transfer protocol (FTP), or CD-Rom.  If a payment is due, SoundExchange will accept payment in the form of a check, a money order, or a bank transfer.  A hardcopy of the form should also accompany the payment.

Pierre Bouvard Named to Head New Arbitron Group.

CEO Michael Skarzynski is taking another step toward using Arbitron’s PPM ratings system to measure more than radio. Company veteran Pierre Bouvard, most recently executive VP of sales, will head a cross-platform media measurement group to develop strategy, define key offerings and take them to the marketplace. Congratulations to Pierre, who has been working with the NJBA to resolve many PPM concerns raised by New Jersey broadcasters.

Oops!

Last week, Quick News inaccurately reported that new NAB President Gordon Smith was the Senator from Washington State. In fact, he was a two term Senator from the great State of Oregon. Special thanks to OAB President Bill Johnston, who is a good friend of New Jersey Broadcasters, for pointing this error out. The NJBA looks forward to great things coming from the Willamette Valley. Thanks Bill!