Rules? What Rules?

1. Rules? What Rules? Top 10 FCC Compliance Errors Every College Broadcast Station Should Avoid Joseph C. Chautin, III, Esq.

2. Top 10 Mistakes • Forget About Your Public Inspection File • File Your License Renewal Application Late • Improperly Complete Your License Renewal Application • Run Commercials On A Noncommercial Station • Ignore Correspondence From the FCC • Fail to Complete/File Regular Reports • Allow Broadcast of Indecent/Obscene Material • Fail to Cooperate During FCC Inspection • Provide False Information To FCC • Be Unfamiliar With William Penn Policy Statement

3. Forget Public Inspection File • Maintain at main studio • Accessible during normal business hours • Check it periodically • Use a Checklist – license, coverage map, quarterly issues/programs list, ownership reports, EEO reports, donor lists, comments from public • No. 1 source of FCC fines

4. Filing Renewal Application Late • Look at License Expiration Date • That is NOT the date to file for renewal • Must electronically file four months prior to expiration date • Must start pre-filing annc six months prior to expiration • Late Filing • Admonishment for up to 11 days late • $$ Fine for anything longer • Very Common Error • Easy to Avoid

5. Improperly Answer Renewal Questions • No. 1 Rule – never carelessly or falsely answer any question on the application • Read instructions and form/questions • Certification Style Questions • Apply to entire 8 year period • Always filed ownership reports? • Always timely placed items in public file? • Fine or notice of violation? • Answer “NO” and explain if problem • Explanation should take “deminimus” approach • Amend if you discover error

6. Run Commercials on NCE Station • Noncom stations may not promote for-profits in exchange for remuneration (broad meaning) • Years of decisions; difficult to parse • May acknowledge donations from a for-profit in neutral, factual announcement • No comparative or qualitative language • Must describe without promoting • No price, no calls-to-action, no inducements • Fundraising for licensee’s other business interests • Watch sporting events that include commercials • Fines are substantial; consent decrees now more common

7. Ignore FCC Correspondence • If the FCC sends something to your station by snail mail, it is important • Read it and take action required • Biggest problem – station never receives it • Wrong address in CDBS online filing system • Also, large campus ops lose or misdirect mail • Large Fines Can Result, Even Loss of Rights • Recent Case

8. Fail to File Regular Reports • Several FCC reporting obligations for Radio • Filed with the FCC • Biennial Ownership Reports (odd years; renewal app) • License Renewal (every 8 years) • Not Filed with the FCC • EEO public file reports (annually if no. employees) • Issues/programs lists (4/10, 7/10, 10/10, 1/10) • Donor lists (ongoing) • TV also has children’s TV reporting obligations • Quarterly; varies depending on commercial/noncom status • Errors always show up at renewal time

9. Allow Broadcast of Indecent Material • On-Air Talent Language and Music Lyrics • Train talent and screen content (no matter how labeled) • Indecent material and profane language prohibited from 6:00 am until 10:00 pm daily; obscenity never • Indecency: language or material that, in context, depicts or describes, in terms patently offensive as measured by contemporary community standards for the broadcast medium, sexual or excretory organs or activities. • Janet Jackson backlash and backlog • Fines increased by Congress • US Supreme Court cases • FCC “Fleeting” Inquiry – hint that fleeting profanity would not violate Communications Act

10. Fail to Cooperate During FCC Inspection • Happens Rarely, but very very important • Cooperation can mean the difference between fine or leniency • Ask for identification; do not turn inspector away • If you don’t know the answer, get manager or advisor • Respond only to what you are asked for/about • Get contact info and follow up on an discrepancy or unanswered question • Fix anything on the spot that can be fixed • After – nothing, notice of violation (NOV), notice of apparent liability (NAL) • EAS, Public File, Operating Power, Tower are Hot Items

11. Provide False Information to FCC • FCC has power to put station license in hearing • Determines if licensee is fit to remain licensee • Applies in all written and verbal communications • Reports • Inspections • Public File • Employee Actions Imputed to Licensee • How Do They Find Out? • Current or former employees • Want to do the right thing • Disgruntled • Personal axe to grind

12. William Penn Univ Policy Change • May 2013 FCC Policy Change • Missing quarterly & ownership reports • Consent Decree in lieu of large fine • 3 year operating conditions; $2500 fine • New Student-Run Station Policy • Limited Circumstances • Primarily student-run NCE stations (500) • Limited budget = inability to pay • Staff turnover = increased chance for errors • Big fine could force station off the air

13. William Penn Univ Policy Cont’d • Only applies to paperwork errors • Ownshp reports, qtrly issues, filing annc • Does not apply to contest, indecency, underwriting, or technical rules • Students must fill all positions except for faculty advisor • FCC will notify station of violation and present consent decree and smaller fine • Only available to first-time offenders • Significant change, but narrow criteria

14. Rules? What Rules? Answers to Your Questions Links on www.hardycarey.com Blog/Newsletter signup