By Ken and Kelly Orchard

There is an old saying that "Ignorance is Bliss". But not when it comes to the FCC Rules and Regulations, ignorance usually results in a Notice of Violation or even a financial forfeiture.

The FCC recently served violations on a station that was fined for several items. The station owner argued that they relied on the station managers to maintain FCC compliance. The FCC countered that the owner’s inexperience (or ignorance), as a broadcaster and its reliance on its appointed management were not grounds for reducing the fine.

When a broadcaster goes to the FCC’s Web site, one can read and download all the material needed to educate them on how to maintain and manage their Federal Communications Commissions Compliance requirements. And, you will read the following:

"Along with the privilege of possessing a license come responsibilities such as knowing the applicable rules."

For nearly four years now, we have been writing articles for this publication, in attempt to educate and warn broadcasters about surprise FCC inspections. We’ve written about possible "Petition to Deny" your stations renewal application and we’ve even informed stations about procedures required when your station license is assigned to another buyer. Believe it, ignorance is not bliss.

If you are an employee of a station and wonder about your stations full FCC compliance, you should consider passing this article on to your upper management and owners. If you want to own a station of your own someday, read and pay attention.

What The Communications Act of 1996 did not do for broadcasting:

Over the years, there has been a lot of confusion and controversy about what exactly the Communications Act of 1996 was. Since then, a myriad of new broadcasters have entered the "playing field". Many of them rely solely on their attorneys to keep them informed. But, the attorney won’t come to the stations to maintain the Public File, Station Logs, or other necessary requirements. The attorney also won’t pay the financial forfeiture when one is issued.

We continue to serve our broadcasting community by writing these articles to assist in the education of those who may be new to broadcasting. We appreciate veterans who contact us for various reasons, even what they consider to be discrepancies, and we continue to maintain conversational relationships with several members of the FCC community. Many of our clients are new to broadcasting. So we continue to find ourselves in the field of education.

So once again, lets go back to some of the basics for many new and current broadcasters.

If you purchase a station, but you have no broadcasting experience except that you were a jock, a newsman, or a programmer back in 1997, and you just love the radio industry, you have probably found that its much more cumbersome than you thought. Lets say, you decided to go in with a few friends, borrow family money and buy your first station. Forget down payment and price. Lets just talk about the particulars on the application.

All buyers of Radio and TV stations have an FCC Form 314 that has to be filled out by seller and yourself, the buyer. Usually, an FCC attorney will fill these forms out and send it to you for signature. You sign it, but did you actually read the application? What did you sign? Chances are you did not take the time to thoroughly read through and understand the documents. Not even the broadcaster who is buying his 2^nd, 4^th or 20th station takes the time to read each and every application. We are not implying that attorneys lie on these forms; there are just some minute details that they and applicants can be oblivious to.

Believe it or not, simple ignorance of the FCC rules and regulations in this case was a $6,500 fine. Another station received a fine over $20,000, another over $100,000.

Stations "Play the Music"; now stations must "Face the Music".

Lately Orchard Media Services has been invited to give an orientation program about FCC rules and regulations; mostly about how to Keep Public Files, develop station Logs, and assist the staff in maintaining the quarterly issue list and program material that need to be placed in their Public Files at certain dates during the year. These presentations to the station owners, management and staff, and employees who participate have proven to be very helpful in educating them so that each and every one know the responsibilities of operating a radio or TV station.

Remember, its not just revenue shares and bottom line profit. It is believable that the FCC could care less about how much your station makes. We have not seen fines handed out by the FCC for not making money. It seems that the FCC only hands out fines for non-compliance and that is the Broadcasters responsibility.

Lets go back to our new station buyer:

If you look at that FCC Form 314 that you signed as the buyer, lets look at the instructions that come with that 314 form.

A) Programming. "Assignees need no longer (this is the buyer) file a specific program service proposed. Nevertheless, prior to making this certification, (This is item #11 on the buyers portion of Form 314) the applicant should familiarize itself with its obligation to provide programming responsive to the needs and interest of the residents of its community of license."

That was an excerpt found in the instruction portion of the 314, now lets see the language that the new buyer actually signs.

The actual language of item #11 of the buyer’s portion of this application to buy a station is:

This is pretty strong language. By signing these documents, you, the buyer promises to do this and has signed the FCC Form. Was it just to get the station? Will you ignore and forget the responsibility to provide programming responsive to the needs and interests of the residents of its community of license?

Lets say that you take control of the license, but you don’t serve your community. In just two years, it time for you to file your application to renew your station license. Yes, this is another FCC form.

Here we go again! Here is item #2 of the renewal application for all of radio and TV.

"Has the applicant placed in its public inspection file at the appropriate times the documentation required by 47 C.F.R. Section 73.3526 and 73.3527? Yes or No

Have you ever looked up that section of the rules and regulations, or did you just sign this renewal application.

Believe it or not, the FCC Rule 73.3526 is 7 pages long and about 3000 words. It is very explicit and detailed as to the fiduciary responsibilities of a licensee.

On the lighter side, and purely hypothetical, maybe the FCC should instead ask the question, "have you read ‘War and Peace’ and are you aware of all the characters, the who, what, and why of this book?

Maybe this question would jar the broadcaster in to thinking, "Maybe there is something more to this running of a radio or TV station". Ignorance will not be bliss when the FCC inspects the station.

Do you remember when President Ronald Reagan said you can trust but you must verify when it came to agreements in the cold war with Russia?

Basically the FCC is saying "we cut down on application forms by asking you yes or no". But now, they have stepped up the verification portion and that is why the large FCC fines are being issued to stations.

So, possibly you have ignored that you signed your name as the buyer that you were cognizant of the responsibility of doing public affairs type programming of current issues for your community. When buying the station and then by signing and submitting your renewal application you again stated that you had placed all this material that is listed in 73.3526 in your Public File. You believe that all is well, and you are operating business as usual.

One day, three people walk into your station and want to see your Public File. Little do you, your staff, or receptionist know these people are experts. And under the rules, you can only ask name and address. They go through your Public File which may be unorganized and merely stuffed in a filing cabinet or maybe a cardboard box. These people know what they are looking for and will go through everything in your Public File. You won’t find out until much later that these people were representatives from a coalition group whose main goal is to find stations that are not meeting community service requirements or are ignoring FCC regulations. Their objective is to petition the FCC for the license of these stations. It is their desire to acquire stations that they feel have not lived up to the applications that the current licensee originally signed. If there are any discrepancies, these groups will find them. Trust on the fact that these coalition groups exist in every state now.

It appears the FCC might not trust you either. Not when you put your name on an FCC Form and you are not living up to what you signed about serving the community of license or living up to the 7 pages or 3000 words of Section 73.3526.

So what’s a Broadcaster to do? As one client who has seen the light, so eloquently stated, "There is really only one way to operate a Radio or TV station. And that’s to do it right".

We recently read an article by FCC Inspector Ronald Ramage, who is headquartered in the Kansas City Enforcement Bureau Office. This articles subject is specifically on the responsibility of keeping station logs. However, it seems to address very important issues that actually encompass all of your FCC rules and requirements. We will quote his article verbatim, used by permission:

"For most of us the mere mention of "paperwork" produces a variety of responses, but rarely are they positive ones. Unfortunately no matter who it is for, what form it takes, when it is produced, where it is stored, why it is required or how it is transferred, documentation of our activities is a necessary part of doing business. Station logs and records are no exception. All licensees are required to keep them, but are the logs kept simply because the FCC requires them or used as a helpful and inexpensive tool?"

If you think you might have a problem with your Public File, station logs and other FCC rules regulation don’t wait any longer, Call or Email me for help…