IS A FINE FROM THE FCC IN YOUR BUDGET? Don't let this happen at your station!

                I have inspected nearly 500 radio and television stations over the past 10 years, and I’ve heard and seen every excuse to why stations don’t have a fully compliant Public File. Some stations feel that since nobody from the “public” ever comes in to see the Public File, much less even knows they have a right to, then the Public File should just be eliminated. There have been some rumblings with attorneys and such to try and do away with them, but so far, the FCC isn’t going to deregulate the necessity of stations maintaining the documents that provide proof that they are meeting their obligations to hold their license to broadcast.

                When I go out to conduct “mock” inspections at stations, I’m a stickler for the rules. I owe it to my clients to play “devil’s advocate” and arm them with information and advice to insure that they are operating under full FCC Compliance. My clients appreciate it, and I believe that I have a good reputation with the FCC.

                So, when I go out to a station who has hired me and find that their Public File has been neglected, I become very concerned. It’s like the old adage, “where there’s smoke, there’s fire”. The Public File is always the first task of my visit. If its orderly, neat, and complete, I already know that the rest of the inspection I’ll find that they are organized and compliant as well. But, if the Public File is disorganized, missing important documents and clearly neglected, rest assured, there will be problems elsewhere at the station.

                If you’re a manager, or someone who just works at a radio or television station, go look at the Public File. It’s going to be an indicator on how well your organization is managing to “protect the license”.

                I’ve been on the road a lot in 2011. Last week, I gave you a general idea of a recent trip. So, let’s talk about a specific market. There were several stations located in one building in this city in Oregon. The first thing I did was go through their Public Files. The following are just a few problems that I found and reported back to the company:

A)    Possible $10,000 FCC fine as station could not produce a full public file.

B)   No renewal Post card in Public File posted along with station license. 

C)   No contour map.

D)   Did not find renewal application in Public File.

E)   Did not find local Public Notice in Public File.

F)    Did not find last Ownership filing in Public File.

G)   Did not find Articles of Corporation in Public File

H)   Did not find EEO file.

I)      Did not find appointment of chief operator letter.

J)    Did not find 2 years of “Station Logs” for viewing. Possible more violations.

K)   There are 20 Quarterly reports missing.

L)    This public file has not been touched in years.

M)   Where is the LMA agreement that it is operating under?

N)   EEO documents are for 2005 only.

O)   Some material about license for another station is in this file.  Needs correction.

P)   Only quarterly report was 4^th QT of 2005.  Nothing after that.

Q)   Toss old stuff from back in 1993

(V) K*** has old version (1999) of FCC Manual in File.

Keep in mind; this is the report for just ONE station in the cluster. Every station’s Public File had similar problems. Thankfully, by participating in the Alternative Broadcast Inspection Program, this group of stations is protected, and has earned a “time out” to get their documentation in order. But, what if the new management had NOT been smart enough to bring someone in to conduct a “mock” inspection, and the FCC decided to pay a random visit?

            Each Public File alone would have been a $10,000 fine. No, I’m not kidding. And you know what? Where there’s smoke, there’s fire…you guessed it, there are issues with engineering documentation as well, and out at the transmitter.

            Not too long ago, a station was fined $9,000 for a Public File violation by the FCC. The station tried to appeal the findings by stating: “we conducted an informal survey among our clients which established that the public has no interest in the content of station issues/programs lists”. The station felt that the “assumption” by the FCC that the “people” are interested is unwarranted and therefore, the fine was excessive.

            The FCC disagreed with the stations appeal and they were ordered to pay the fine.

            Perhaps you are dealing with a high turnover of staff at your stations. Maybe training has had to take a backseat to develop your sales team to increase revenue during these tough economic times. Or, perhaps you just acquired or took control of some stations. Whatever your circumstances are, it would be wise to invest in a little insurance, like some of my clients have. If you’re a member or your state association, you could call them. If not, you can call me. I have been authorized by the FCC to conduct Alternative Broadcast Inspections in every state across our country.

Next week, I’ll tell you about what I found in Washington State, and we’ll go from there! In the meantime, please invest in your station in a way that insures the FCC won’t be calling attention to your problems!

Call me for a confidential conversation! I’m here to help!

On the road again

I have the pleasure of doing a lot of traveling conducting voluntary “mock” inspections of radio and television stations. I’m not an attorney and I don’t claim to be. I’m a broadcast engineer, former station owner, and now a FCC Compliance Specialist. I’ve had the joy of a long career in broadcasting and after such a long time, still enjoy the industry.

Earlier this year, I was contracted to inspect 20 stations owned by a group, located in California, Oregon, Washington, Idaho, Utah and Colorado. It was quite a trip, and I’ll tell you more about it in the weeks ahead.

If you are a broadcaster, you have many things to be concerned about, no doubt about that. This latest trip, reminded me of why I started Orchard Media Services as an FCC Compliance specialist, helping stations with the often complex and cumbersome task of maintaining all the requirements to maintain their license and not be subject to violations or fines.

I’ve written dozens of articles about what I’ve found out there in my travels, and without reiterating every single one of them, you can find them on my website, www.orchardmediaservices.com.  However, this is my ongoing concern.

With all the turnover of staff, management, and ownership, the Public Files and other documentation is seriously neglected. I found myself wondering if anything had improved over the last ten years since consolidation became the norm and large groups emerged from the ashes. After reading this article I wrote back in 2001, just ten years ago, I almost hate to acknowledge that the answer to the question, “has there been any improvement?” would be a resounding, NO. You can read this article here:

http://www.orchardmediaservices.com/articles/feb2001.htm

Here’s what I found on my latest trip; Public Files that had been neglected for years and no one knowing what to do about them. One station even ran out and bought a filing cabinet and spent hours into the evening prior to my visit trying to organize their Public File. When I inspected the file, I felt sympathy for their staff that stayed late, because documentation was missing, numerous quarterly reports were missing and no matter how much they tried, it will result in a fine from the FCC. That’s just a fact. Believe me or don’t, but the FCC recently served a Notice of Liability and Forfeiture for a station issuing a fine for $10000, for missing nine quarterly reports during their license period. I wonder what the fine would be for the station I just visited, who was missing 20?

 http://www.fcc.gov/eb/Orders/2011/DA-11-352A1.html

Cumulus Station in PA Hit With $10,000 NAL.

 Ever sit quietly in your GM chair wondering if an FCC inspector would ever walk through the front door and ask the receptionist to see the public file? You may ask yourself, “ It's so rare that a listener or community member ever asks for a peek at the files, why would the FCC care about us? Especially the little guys in a small town, off a beaten path”.

 Well, this story may make you get up out of your chair and make sure things are up to date and ready for a look see.

Here’s what happened in Philly: 

On November 17,2009, an agent from the Enforcement Bureau's Philadelphia Office conducted an inspection with Station WWIZ's chief operator and station market manager at the station's main studio in Youngstown, Ohio. The agent reviewed the materials in the public inspection file and found that the station was missing nine quarterly issues/programs lists, i.e., all quarterly issues/programs lists since the Commission granted Station WWIZ's renewal application on June 22, 2007.

 Stations must maintain, for public inspection, a file containing quarterly issues materials. The file needs to be available for public inspection at any time during regular business hours. The list of programs outlines the station's most significant treatment of community issues during the preceding three-month period.

Cumulus has 30 days to pay or appeal

.

 Remember your station license is for 8 years. Quarterly reports are required. Let’s do the math: 4 quarters per year would add up to 32 reports that should be in your public file.

Not only has the broadcast industry declined over the past ten years due to new media technologies and competition for audience. Nobody is ignorant to that. But, has it become “standard operating procedure” to just not be overly concerned with “protecting the license”, and maintaining the minimal requirements for having the right to hold a license to broadcast.

 I’d think I was the only one who cares, but I know that’s not true, because believe it or not, my consulting services appear to be in high demand in 2011.

More stories from the road coming soon…..

Until then, if you need some help at your station, don’t hesitate to call me for a confidential conversation!

From the Desk of Ken Orchard: The FCC is enforcing NOW!

From the Desk of Ken Orchard: The FCC is enforcing NOW!: "As we close 2010, I'm concerned about stations that aren't meeting their obligations with the FCC. As many of you know, I've been working as..."

The FCC is enforcing NOW!

As we close 2010, I'm concerned about stations that aren't meeting their obligations with the FCC. As many of you know, I've been working as a nationwide FCC Compliance specialist for many years, and this past year has been excruciatingly tough on radio and television. But, it doesn't prevent the FCC from visiting your stations. Here is an example that really troubled me recently:

I found this post from one of the radio trade magazines:

"Making an FCC agent wait 90 minutes to see the public file - and then not delivering the goods - cost Arthur Liu's Multicultural Radio, the former licensee, a "$10,000 fine. The station is the currently-silent New York-area WNYG, Babylon (1440), but it was on the air last Fall when a Commission rep dropped by and asked to see the public file. It's supposed to be available at any time, during regular business hours, to anyone who asks. Instead, the agent was told it had been sent to the corporate office in New York to assist with a pending lawsuit. The Enforcement Bureau agent said he'd visit a co-located station, and when he came back to WNYG 90 minutes later, he discovered that the just-delivered file lacked the required quarterly issues/programs list for the current license period. In fact, the most recent list was dated March 1999. Later, when Multicultural responded to the FCC, it was able to supply the data. But the result is a $10,000 fine."

Results: You don't get a second chance to make a first impression on the FCC. FCC Compliance is an ongoing process for the duration of your 8-year license.

I'm available to consult with your station and conduct Alternative Broadcast Inspections nationwide - stay tuned for more observations from The Desk of Ken Orchard