Regulatory Review: Barry D. Umansky

License Renewal: It's Trickier Than It Looks

7/9/03

TV Technology

 

OK, TV station license renewals are not due at the FCC until next year. But, for many of you, this will be the first time you have had the responsibility for license renewal. And even for broadcast veterans, it's been a long time since you last had to take on this responsibility. So, now is the time to brace for license renewal.

When your station files its application for renewal of FCC license, you will have to certify your compliance -- over the entire eight -- year license term- with a number of FCC requirements. Preparing for license renewal truly is an eight-year job for television stations, during which you must keep your track record clean. And the risks can be severe for those who try to conceal regulatory lapses on the renewal form. Making up the answers, without knowing the truth potentially can result in "misrepresenting" yourself to the Commission, which may create a very bad license renewal experience for you and your station.

As in the past, the FCC's acceptance of license renewal applications is on a "state-by-state" basis, with deadlines coming up around the country over a three-year period. Compared to decades ago, the renewal form is shorter and simpler, and there are fewer areas of regulatory inquiry for applicants. But, there still are plenty of ways to screw up your filing, which soon must be done electronically over the FCC's Web site-a new facet of the process which poses its own complications.

TIMING AND 'RENEWAL ANNOUNCEMENTS'

Broadcasters file their renewal applications four months before their current licenses are due to expire. So, stations filing for renewal on June 2, 2004, have licenses set to expire on the first day of October, 2004. The "well ahead of license expiration" timing of the application filing is to allow for FCC review of the renewal application and also for assessment of potential "petitions-to-deny" the application and/or informal objections filed against the renewal application. In order to give the public an opportunity to challenge your renewal application, you must broadcast a series of announcements (10 in all), on your station, about your filing of the renewal application and the public's ability to participate in the FCC process.

RUNNING THE GAUNTLENT

Why would someone file against your application? Well, frankly, there now is less incentive for a person or organization to do so. Years ago, someone could file a "competing application," urging the FCC to deny your renewal application and to award the license to them. But Congress eliminated the "comparative renewal" process and ended the nearly impossible task of the Commission comparing the track record of you, the incumbent licensee, and the mere paper promises of a challenger.

However, if someone out there has a grudge against you or your station, they can file a petition-to-deny your renewal application or just an "informal objection" to your renewal application. Each such filing, of course, at minimum will slow down the FCC process of reviewing and granting your application, and may even result in the FCC designating your application for a special "hearing," where you would be forced to answer the allegations of the complainant/petitioner.

RENEWAL AREAS OF FOCUS

Traditionally the FCC -- and petitioners -- have focused on a limited number of issues involving a renewal application. Below are some examples; but be aware that a wide variety of matters may be considered as the Commission reviews your renewal form.

EEO: Now that the FCC has imposed a revised set of equal employment opportunity rules, EEO again has taken renewal center stage. That is, expect the majority of license renewal challenges to be based on alleged EEO deficiencies.

RF Radiation: The FCC may be looking to see if you gave an adequate and truthful response to the question about your protection of the public and station workers from exposure to electromagnetic energy above the levels specified in the FCC's guidelines.

Children's Television: For television broadcasters, one of the key areas where renewal jeopardy might attach is children's television. Violations of the Children's Television Act of 1990 will be considered, along with the licensee's overall performance, in determining whether it is entitled to renewal of license. The Act established a specific programming obligation for television licensees to serve the "educational and informational needs" of children through both its overall programming and programming designed specifically to serve those needs. The Act also imposed strict commercial time limits for children's television. In recent years, the Commission has used the renewal process to impose

sanctions -- usually monetary forfeitures -- against television broadcasters not complying with the Act and/or the Commission's Rules.

Public File and Other Potential Area of Misrepresentation: It is a cardinal sin for you to fudge the facts-because someone can point to that falsehood in a renewal challenge. And if a challenger notes areas on the license renewal form where you have fibbed a little -- or a lot -- then expect "misrepresentation" to be the key element of the FCC's assessment of your license renewal application and your fitness to remain an FCC licensee. Sure, license revocation is a rarity. But, lightning can strike-and you don't want to be the one hit.

Certifying Your Compliance: At renewal time every station must meet a new, Congressionally-imposed standard for license renewal, stating that the Commission shall grant a license renewal application only if it finds that, during the preceding license term: (1) the station has served the public interest, convenience, and necessity; (2) there have been no serious violations by the licensee of the Communications Act or the Commission's Rules; and (3) there have been no other violations of the Act or the Commission's rules which, taken together, would constitute a pattern of abuse.

Stations only have to disclose violations that were "preliminarily or finally" assessed by the Commission or a court of competent jurisdiction. It does not include "violations" identified by the station itself or in conjunction with the station's participation in an Alternative Broadcast Inspection Program. But, the FCC says it may also consider other violations that come to its attention in determining whether to grant a license renewal application.

Yes, license renewal is trickier than it looks. Keeping your FCC license is the highest responsibility of a broadcaster. So, be responsible!