FEDERAL UPDATE BY RICHARD R. ZARAGOZA, ESQ., PILLSBURY WINTHROP SHAW PITTMAN LLP, WASHINGTON, D.C.

IN-STATE UPDATE BY JAMES SMITH, ESQ., SMITH & SOWALSKY, BOSTON, MA

The regulatory winds continue to blow hard into the faces of broadcasters, with television broadcasters in particular beginning to suffer from windburn. Two factors are at play. First, the transition to DTV is drawing FCC and congressional attention to television stations, and second, regulators have the perception that television stations have larger staffs and greater economic resources than radio stations, and this has increasingly led the government to use television stations as test beds for new regulatory requirements. Like the canary in the coal mine, television stations will then be observed to determine how their operations are impacted by the new regulatory requirements. If they appear to survive, it is a safe bet that in many cases the regulations will be expanded to cover radio stations as well.

In this vein, the FCC has adopted regulations requiring that television stations with websites begin posting most of the content of their public inspection files online, and that the online public inspection files comply with certain web standards (W3C/WAI) to ensure that they are accessible to those with disabilities. Having now worked with a number of broadcasters to create web versions of their public inspection files, I can tell you that it is not the simple task portrayed by the FCC in its order. In addition, the burden is inversely proportional to the size of the broadcaster, as those with fewer stations lack the ability to spread the costs and learning curve over a broader number of stations.

Similarly, the requirement that television stations shift from placing Quarterly Programs/Issues lists in their public inspection file to filing a new Form 355 each quarter creates a substantial increase in workload and recordkeeping that will likely find its way to radio. Among many other distinctions, Quarterly Programs/Issues lists were required to provide only a sampling of a station’s “public interest programming” over a quarter, while the Form 355 is intended to be an exhaustive list of all such programming, making the process of completing it far more challenging, and the risk of adverse action for failing to be as complete as possible far greater.

While the online public inspection file and Form 355 requirements have already been adopted for television, the legal procedure to make them go into effect is not yet complete. Whether you operate television or radio stations, take a moment to look over the new Form 355. A copy can be found appended to our January 2008 client advisory on these new requirements (located under the Communications Section Publications) at the Pillsburylaw.com website. TV stations will begin using the form shortly, and unless radio stations acting through their state associations start making the case to prevent expansion of the form to include radio stations, they too will begin feeling regulatory windburn.

The Legislature is now into the final months of its biennial legislative session. Although some progress has been made during the first 16 months of the session, these next few months will be extremely active up until July 31, 2008 when the legislative session ends. April is typically ablaze with the House releasing and debating the budget. The Senate will release and debate its own version of the budget around mid-May. Most bills have been reported out of committee or sent into a study. Some bills have been granted an extension in order that the committee to which they were assigned can look into it further and most likely, act on it. Included in the list of bills granted an extension order is the Free Flow of Information Bill, the so-called reporter shield bill filed by the Massachusetts Broadcasters Association.

The bill is currently in the Joint Committee on the Judiciary. Meetings have been held with both Chairs of the Committee – House Chairman Eugene O’Flaherty and Senate Chairman Robert Creedon. There are many issues before Judiciary that the committee is focused on, including CORI reform and Jessica’s law. While this certainly does not preclude the shield bill from coming out of committee, it does mean that we may not see the shield bill until late May to early June, after the issues which receive more press attention are addressed. We recently met with members of the Governor’s legal office, legislative office and press office regarding the Shield law bill. It was a good meeting, with Ben Clements and Joe Landolfi asking very pointed questions and showed knowledge of the issue. They have asked that we follow up with Speaker DiMasi and we have done that. The next step is for us to meet with the Senate President, Therese Murray. We also are arranging for additional meetings with House Chair O’Flaherty to keep him updated as to our progress with meetings that we have had over the past few months.

With casinos now off the agenda, the Legislature is focused on resolving issues that are currently in conference committee: oceans management, clean energy, child abuse, and a $1 billion life sciences bill. An important tax bill is making its way through the Legislature and it will particularly affect larger, multi-state companies.

On May 27th, the Massachusetts Broadcasters Association will be participating with Comcast in a DTV legislative day. Members of our board will be part of a panel to educate legislators and their staff on the upcoming digital conversion. Watch for an exclusive Mass Broadcasters event with Governor Patrick coming up later his spring.

 

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