NJBA Weekly Newsletter Friday, November 20, 2009

New FCC Form 323 Must be Filed by December 15th

The Office of Management & Budget has now approved the new FCC Form 323 Ownership Report and the FCC has announced a new uniform filing date for all broadcast stations.  New reports will be required covering all stations no later than December 15, 2009.  Information in the report is to be accurate as of November 1, 2009. The Commission initiated this revision to address and correct deficiencies in its data-gathering methods identified by the U.S. Government Accountability Office and other researchers. Every broadcaster should begin by reviewing the new form.  Many of the changes involve moving information that had previously been filed in attachments to the body of the application as fill-in fields and other types of responses that will lend themselves to quantification reporting and regression analysis. Note: this is not the final version!  It is highly likely that the FCC will further revise the form within the next several weeks. With only a short window of time in which to prepare and file the new form, everyone required to file should immediately review their most recently-filed ownership reports for changes that have occurred and that should be reported.  A separate report will be required for each business entity with an attributable interest in a licensee or permittee.  

Radio Interference Still a Major Concern in NJ

This week, NJBA President Paul Rotella met with Senate and Congressional leaders to reinforce the unique concerns New Jersey Broadcasters have with LPFMs and other interference issues, which have plagued the Garden State broadcast industry for decades.  Rotella attended the Senate Commerce Committee Mark-up of the LPFM bill, which could hurt NJ Broadcasters if passed in its present form. Thanks to the Senator Frank Lautenberg, New Jersey has once again secured third adjacent channel protection from LPFM interference. While the NJBA has made great strides in protecting local broadcasters, new serious interference challenges continue to emerge that threaten the delicate broadcast band allocation in New Jersey.  

Radio stations do not operate in protected contours as the FCC and advocates for this legislation suggest.  Rather, they operate in and serve markets.  And while the larger Class “B” stations in New York and Philadelphia determine their markets with their signals, we in New Jersey live in a world where the market is determined for us. To produce the revenue we need to exist, we need to be heard throughout those markets. This proposed LPFM legislation and the FCC actions are working at cross purposes to achieving the goals of both Congress and the Commission have long expressed: localism, diversity of voices, Equal opportunity opportunities, and intelligent local content. There is simply no justification, in law or in public policy, which would warrant the absence of this necessary protection, especially given the precarious state of our fragile Emergency Alert System in New Jersey. The NJBA proposes amended rules to require FM translator and LP100 watt stations applying to operate in New Jersey to provide protection to the 44 dBu (50,50) contour as the protected contour for full power, commercial FM broadcast facilities licensed to New Jersey communities (with maximum permitted facilities assumed for each station), with a 20 dB desired to undesired (“D/U”) ratio for the second adjacent channel. There is considerable support for adoption of this standard. The most compelling data are from actual listenership reports that demonstrate audience well beyond the 44 dBu contour.

Thank You Senator Lautenberg

The NJBA would like to take this opportunity to express its deep appreciation to New Jersey’s own Frank Lautenberg, who once again showed his understanding and insight into the complexities of New Jersey’s diverse broadcast community by offering an amendment to the LPFM bill that was voted out of the Commerce Committee this week. Senator Frank is to be applauded for protecting New Jersey broadcasters in the past against interference and he continues to be a concerned friend when it comes to many broadcaster issues. Senator Lautenberg, along with Congressman Frank Pallone, have been steadfast supporters of our associating. We are especially grateful for their insight and advocacy as to the very special and unique needs of New Jersey Broadcasters, and we thank them, once again, for their dedicated support. Special thanks to our legislator’s staff for working tirelessly on this amendment, and for spending so much time with representatives of the NJBA throughout this busy legislative session.

Performance Tax Fight Goes On

In spite of make nice entreaties by Congress to make settle the broadcast industry’s dispute with RAII, there can be no negotiation of this crucial NJBA issue. Senate Judiciary Committee chairman Patrick Leahy (D-VT) and House Judiciary Committee chairman John Conyers (D-MI) hope that by putting broadcasters and the music industry in a room, they will get the two sides talking about a proposed end to radio’s long-held performance royalty exemption. Why? So the greedy foreign owned record companies can destroy free-over-the-air radio. Wake up Washington and put American interest first for a change. In New Jersey, we are gratified by the support of our Congressmen, who, with the exception of Congressmen Payne, Holt, and Rothman, have stepped up to support NJ radio. The NJBA remains grateful to Congressmen Smith, Pallone, Pascrell, Garrett, LoBiondo, Andrews, Lance, Adler, Frelinghuysen, and Sires, and we thank them for cosponsoring H. Con. Res. 49, the “Local Radio Freedom Act,” which opposes any new tax or fee on local radio stations for the music they play for free. We are hopeful that Senators Lautenberg and Mendez will soon join the fight by endorsing the Senate version of our important bill.

ASCAP/BMI Negotiations in Trouble

In a late breaking development, it seems all but certain that  radio broadcasters will wind up in federal court to resolve any new licensing agreement with ASCAP and BMI The Radio Music Licensing Committee, (RMLC) headed by Bill Velez, has been negotiation with the performance rights organizations since the beginning of the year, but those negotiations have stalled. The NJBA will continue to closely monitor this situation.

NAB Outlines Evils of P-Tax; Gets another Co-Sponsor

Representatives from the National Association of Broadcasters met with members of Congress and representatives from the Recording Industry Association of America (RIAA) this week to reiterate the negative impact an additional performance fee would have on local radio stations and its 235 million weekly listeners. NAB Joint Board Chairman Steve Newberry, president and CEO of Kentucky-based Commonwealth Broadcasting, and NAB Radio Board Chairman Charles Warfield, president and COO of ICBC Broadcast Holdings, along with representatives from the National Association of Black-owned Broadcasters and the Spanish Broadcasters Association attended the meeting. Rep. Mike Conaway (TX-11), an original co-sponsor of a countering resolution known as The Local Radio Freedom Act, also participated in today's meeting. Commenting on today's meeting, NAB Executive Vice President Dennis Wharton issued the following statement: "Out of deference to key members of Congress, NAB representatives met with representatives of RIAA and the music industry to discuss pending performance tax legislation. NAB representatives, along with representatives of minority-owned radio stations, reiterated our strong concerns over the negative impact that the bill would have on the ability of free and local radio stations to continue serving our listeners." Meanwhile Utah Democrat Jim Matheson (UT-2) became the 253rd member of House of Representatives to cosponsor the Local Radio Freedom Act, a bipartisan resolution that opposes "any new performance fee, tax, royalty, or other charge" on local radio stations for music aired free to listeners. To date a bipartisan group of 253 House lawmakers and 27 U.S. Senators have publicly expressed opposition to the RIAA-backed legislation. The NJBA agrees with RTV’s observation that “as the labels dry up music sources on the internet and drive radio stations into non-music formats, they will not be earning any royalties. Nor will they be promoting their product.” It’s a strategy without a future.

NJBA Joint Filing Helps Broadcaster in EAS Controversy

You'll recall that a month or so ago, the NJBA joined with our sister associations around the nation and joined in the filing of an "amicus" letter with the FCC, protesting its proposed Notice of Apparently Liability and Forfeiture against KWVE-FM, Santa Ana, CA, for an inadvertent mishap involving an EAS Required Monthly Test.  The FCC on Friday decided to dismiss the NAL and the fine and to admonish the station instead.  Its Order is attached. KWVE plans to protest the admonishment, but our filing had the intended effect of getting the FCC to soften its response to this situation. Broadcasters are the backbone of the EAS system and they should not be penalized for innocent administrative or broadcast errors.

NJBA Member Benefit:  The ABIP Program Can’t Be Beat

Imagine opening a letter from the Federal Communications Commission only to find enclosed an eight thousand dollar {$8,000.00} FORFEITURE ORDER against your Station License due to the failure of your Staff to timely place a required item into the Public File!  How will you respond to the upcoming 2014 FCC License Renewal Application question: “Have all items required in the Public File been placed there by the due date throughout the License Term?”  If you answer ‘No’ to the preceding question...an automatic $8,000.00 forfeiture order will be issued by the FCC. Are you absolutely certain that your Station is currently operating at the site specified by the Station License with only the facilities authorized and are those facilities operating within all conditions imposed by the FCC?  Are there sufficient records at your station today to meet the FCC requirements for the logging of; EAS Activity, Tower Light Monitoring, Tower Light Outage Procedures, Mode of Operation Change Notations and posted Operator Instructions?  Recent FCC Forfeiture Orders for violations in these preceding areas have exceeded twenty thousand dollars {$20,000.00}.

The NJBA-ABIP’s confidential compliance audits have notified participating Radio and Television Stations of existing violations and the corrective actions required…which if the violations had not been resolved could have resulted in hundreds of thousands of dollars in Forfeiture Orders over the past 14 years. As a Member Station of the New Jersey Broadcasters Association, your Station has the opportunity to participate in the NJBA-Alternate Broadcast Inspection Program at a significantly reduced fee. For approximately 40 cents per day for Radio and 70 cents per day for Television Stations – the protection that the NJBA-ABIP provides to participating Member Stations is Priceless!  Do not risk a costly FCC forfeiture order for a violation that you were not even aware exists at your Station today…call Mary at the New Jersey Broadcasters Association at (609) 860-0111 and enroll in the NJBA-Alternate Broadcast Inspection Program.

NJBA Adds Punch to Operation Medicine Cabinet’s Enormous Success

Gerard P. McAleer, the Special Agent in Charge of the Drug Enforcement Administration (DEA) New Jersey Division and New Jersey Attorney General Anne Milgram, announced the great success of Operation Medicine Cabinet New Jersey. This initiative, created with the Partnership for a Drug-Free New Jersey (PDFNJ), had 442 communities participating, and was available for all New Jersey residents to properly dispose of their unused, unwanted and expired medicine. Operation Medicine Cabinet New Jersey is a statewide initiative that is the first of its kind in the nation. The operation netted over 9,000 pounds of old and outdated medications, which were destroyed and kept out of the reach of children and potential drug abusers. This statewide effort was spearheaded by the DEA New Jersey Division, the New Jersey Office of the Attorney General (OAG), the Partnership for a Drug Free NJ, and the diverse membership of the New Jersey Broadcasters Association, with partnership and support by many other local and statewide prevention and enforcement organizations.

Senator Dobbs From New Jersey?

United Stations Radio Network personality and former CNN host Lou Dobbs says he is considering a run for the Senate. The New York Post says that even though Dobbs left the Republican Party a few years ago and now calls himself an independent, he has also called himself a “Rockefeller Republican” in the past. New Jersey political experts think the GOP would line him up to run against Bob Menendez (D-NJ) in 2012. The fact that a Republican just won the race for governor only underscores the idea. Dobbs, who has expressed possible interest in public office before, would of course enter such a race with high name recognition and with it, great potential as a campaign fund-raiser. He would also, however, bring plenty of baggage with him regarding the issue of illegal immigration, in a state where NYP says there is a very large immigrant population. The fact that Menendez is Hispanic would only catapult the issue higher on the public awareness chart.

NJBA Opposes Taking of Spectrum From Broadcasters

Recently, the NJBA joined with 44 other State Broadcasters Associations in a filing with the FCC that opposed the taking of spectrum used by the television broadcast industry for reallocation to the broadband industry.  We urged the Commission to "quickly and firmly dispel any speculation" that it was considering disenfranchising the millions of consumers who have already been, in effect, required to spend billions of dollars for new DTV products in response to the government's recent DTV transition-related spectrum reallocation, notwithstanding the foreseeable effect that such disenfranchisement will make those consumers permanently dependent upon pay television ser urge a preposterous definition of efficiency because people consume vices.  The NJBA pointed out that those who argue that broadcasting uses spectrum inefficiently services, not bits, and not all bits have the same value. "A single television stream sent over a wireless network to one viewer requires about the same number of bits as an identical stream sent over a broadcast signal, although the broadcast stream can be viewed by hundreds, thousands or millions of people" and that "[f]or video services viewed by a large audience, broadcast delivery is vastly more efficient than any wireless service."  We also emphasized that the DTV Transition is a new beginning, not the end, of innovation in broadcast television, and that the availability of free-over-the-air television and the services to come serve as a powerful force in moderating multichannel service prices.

2010 Service to America Awards Entry Deadline March 2

Every day, broadcasters serve their local communities. They provide a lifeline in times of crisis and disaster relief in the aftermath; they raise money and awareness for people in need and for charitable causes; and they participate in community events and donate airtime to support community issues. On one special night each year, broadcasters are acknowledged and thanked for their outstanding service to their communities. Showcase your station's commitment to localism. Submit your Celebration of Service to America Awards entries today. The deadline for entries is March 2, 2010. For more information, including award categories, criteria and rules for entry, go to www.nab.org/servicetoamerica .

New Governor Says NJ Budget Deficit is the Real Problem

The Star Ledger reported that Governor-elect Chris Christie and his team got their first hands-on look at New Jersey’s already bleak state finances today and he says it’s even worse than he realized. "We did not get any pleasant news this morning from the Treasurer’s Office, not that I expected to, but more unpleasant, perhaps, than we had hoped." Christie said. State finances are "undoubtedly New Jersey’s most serious problem," he said. Christie declined to offer specifics about how he’s planning to address the fiscal problems, saying he is still gathering information.

2010 Conclave Returns to Minneapolis

Tom Kay and the board of The Conclave will hold their 2010 CONFAB educational conference in Minnesota on July 15-17, 2010. This is the 35th Conclave meeting and this time it will be hosted at the Doubletree Hotel in St. Louis Park. They’re keeping it affordable ($99 a night) and hotel registration is already open at that rate. Through education, the Conclave’s mission is to improve the quality of broadcasting and related industries so they may better serve the public interest. For more information, check out their web site www.theconclave.com .

Levin Goes Back to College

Mark Levin, the Citadel Media-syndicated personality, received a coveted invitation to deliver the annual Churchill dinner keynote speech at Hillsdale College in Hillsdale, MI. Past speakers were folks like Rush Limbaugh, Karl Rove and Supreme Court Justice Clarence Thomas. The conservative talk show host has been an outspoken critic of the FCC and the new regulations proposed by the Obama administration. Levin was the chief of staff to former attorney general Ed Meese and served in the Reagan Administration prior to his gig on radio.

Renew Your NJBA Commitment Today

New Jersey broadcasters serve a most unique and important marketplace and we need our own voice to represent our unique and vital interests. The threats against our industry are real; they are formidable, and they are numerous. That is why, now more than ever, it is important that your station remain a strong supporter of the NJBA. Many times, the NJBA is the only force fighting for you and your station against the onslaught of regulatory and economic pressures working against your station every day. The New Jersey Broadcasters Association has been fiercely fighting for your rights and supremacy as a New Jersey broadcaster across the spectrum of challenges facing our industry. You can be confident that we work hard to protect your rights and to prevent the further erosion of your broadcast interests in Washington and Trenton.  Your membership investment and participation in our NCSA and Public Education Program is critical to us going forward.  Look for your NJBA renewal statements to hit your mailbox next week.  On behalf of all New Jersey Broadcasters, thank you for your continued support. Let’s work together to make New Jersey strong.

The Trenton Report from: The Marcus Group

Governor-elect Chris Christie recently got his first up-close look at New Jersey’s financial books. With his transition team hard at work, they are looking to identify ways to cut government spending and for New Jersey to become more business-friendly. Christie has pledged to put the state on the “long-term path to fiscal health, no matter what the ramifications of that are,” but also said he would not balance the budget by increasing taxes.

The governor-elect recently sent a letter to Governor Corzine requesting that he freeze all activities that would require state funds, including all appointments to boards, any legislation with fiscal impact, and all consulting contracts.

Happy Thanksgiving and a Special Thank You

Next week, we as a nation, pause to give thanks for our blessings, not the least of which is the blessing of liberty. In no other profession, is this sacred right more prevalently on display than in broadcast, and we, as broadcasters, are stewards of this freedom guaranteed by the First Amendment to our Constitution. To be sure, we are the champions of free speck. But the right has been paid for with the sacrifice of our brave men and women in uniform. We think of them, today and always, but especially on Thanksgiving, for keeping us safe and for protecting our freedoms with their lives. Our gratitude cannot be expressed in mere words. Suffice it to say: Thank you--- Thank you very much! May God keep them safe and may they return home safely, and soon.

Quick News will be on vacation next week in honor of the Thanksgiving holiday, but will return on Friday, December 4^th….only 21 days before Christmas! Happy shopping!

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.