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WEBVTT 00:00:00.000 --> 00:00:03.379 There's a folder sitting on the FCC's website 00:00:03.379 --> 00:00:07.160 right now with your station's name on it Anyone 00:00:07.160 --> 00:00:11.460 can open it right now from their couch at two 00:00:11.460 --> 00:00:14.980 o 'clock in the morning and if something is missing 00:00:14.980 --> 00:00:20.980 or late or filed wrong That's a problem that 00:00:20.980 --> 00:00:23.359 could cost your station tens of thousands of 00:00:23.359 --> 00:00:26.519 dollars before you even know that there's an 00:00:26.519 --> 00:00:30.199 investigation This is the Tyler Woodward project 00:00:30.199 --> 00:00:34.039 and today I'm talking about the FCC public file 00:00:34.039 --> 00:00:37.520 What it actually is why it's a compliance trap 00:00:37.520 --> 00:00:39.799 that even the big broadcast groups keep falling 00:00:39.799 --> 00:00:42.899 into and The specific parts of it that will get 00:00:42.899 --> 00:00:45.820 you in trouble if you're not paying attention 00:00:45.820 --> 00:00:56.460 So let me back up for people who don't usually 00:00:56.460 --> 00:01:01.039 deal with this directly. Every license broadcast 00:01:01.039 --> 00:01:04.700 station in the United States is required by the 00:01:04.700 --> 00:01:07.939 FCC to maintain what's called a public inspection 00:01:07.939 --> 00:01:12.680 file. The idea goes back decades. The FCC wanted 00:01:12.680 --> 00:01:15.459 the public to be able to walk into any radio 00:01:15.459 --> 00:01:18.560 station and see that it was actually serving 00:01:18.560 --> 00:01:22.500 the community. License applications, ownership 00:01:22.500 --> 00:01:25.780 records, how the station handles political advertising. 00:01:26.480 --> 00:01:30.819 The public has a right to that information. For 00:01:30.819 --> 00:01:33.480 most of radio's history, that meant a physical 00:01:33.480 --> 00:01:36.799 binder in a cabinet somewhere at the main studio. 00:01:37.519 --> 00:01:41.400 Sure, it was a little dusty, rarely opened, and 00:01:41.400 --> 00:01:43.739 in most cases it was either the chief engineer 00:01:43.739 --> 00:01:48.560 or the GM who knew where it was and vaguely knew 00:01:48.560 --> 00:01:52.140 what was supposed to be in it. That changed in 00:01:52.140 --> 00:01:56.560 2018. The FCC moved all radio stations to an 00:01:56.560 --> 00:02:00.579 online system called the Public Inspection File. 00:02:01.280 --> 00:02:06.079 Hosted at publicfiles .fcc .gov, big market commercial 00:02:06.079 --> 00:02:11.259 stations, they transitioned back in 2016. Everyone 00:02:11.259 --> 00:02:16.039 else had until March 1st of 2018. And here's 00:02:16.039 --> 00:02:20.020 what changed fundamentally. Everything in that 00:02:20.020 --> 00:02:24.340 file is now publicly searchable, permanently 00:02:24.340 --> 00:02:28.900 date stamped, and can be audited by anyone with 00:02:28.900 --> 00:02:32.300 an internet connection, a watchdog group, an 00:02:32.300 --> 00:02:35.740 opposing political campaign, an FCC staffer, 00:02:36.000 --> 00:02:39.560 a journalist, or your competitor down the street. 00:02:40.419 --> 00:02:43.620 The binder in the cabinet had a certain obscurity 00:02:43.620 --> 00:02:47.340 protecting it, the online file, it's got none 00:02:47.340 --> 00:02:52.520 of that. So what does the FCC expects you to 00:02:52.520 --> 00:02:56.139 have in there. It's more than most people think. 00:02:57.520 --> 00:03:02.360 Your license and applications, obviously. Ownership 00:03:02.360 --> 00:03:06.479 reports, contour maps, copies of any time brokerage 00:03:06.479 --> 00:03:10.639 or joint sales agreements, the FCC's own public 00:03:10.639 --> 00:03:14.379 and broadcast and manual, EEO reports, you know, 00:03:14.439 --> 00:03:18.219 the equal employment opportunity stuff. All of 00:03:18.219 --> 00:03:21.990 that's got to be filed annually. A list of donors 00:03:21.990 --> 00:03:24.770 for specific programs if you're a non -commercial 00:03:24.770 --> 00:03:29.310 station. And then there's two items that are 00:03:29.310 --> 00:03:32.189 responsible for the vast majority of fines in 00:03:32.189 --> 00:03:36.389 this space. The political file and the quarterly 00:03:36.389 --> 00:03:39.469 issues and programs list. I'll get to both of 00:03:39.469 --> 00:03:43.789 those. But first, a word about the online public 00:03:43.789 --> 00:03:47.830 inspection file portal itself. Well, because 00:03:47.830 --> 00:03:51.240 it deserves its own moment. acknowledgement. 00:03:52.199 --> 00:03:58.039 The portal, it's not great. It's gone down during 00:03:58.039 --> 00:04:01.419 election seasons, which is exactly when you can't 00:04:01.419 --> 00:04:04.199 afford for it to go down. There was a significant 00:04:04.199 --> 00:04:08.159 outage in late October in early November of 2022, 00:04:08.819 --> 00:04:11.199 right before the midterms, when stations were 00:04:11.199 --> 00:04:14.719 trying to upload political ad documentation. 00:04:15.520 --> 00:04:18.180 The FCC acknowledged the problem, they extended 00:04:18.180 --> 00:04:20.620 the fourth quarter deadline that year because 00:04:20.620 --> 00:04:26.800 the system had quote intermittent operation the 00:04:26.800 --> 00:04:29.920 login system requires fcc registration credentials 00:04:29.920 --> 00:04:33.980 and now two -factor authentication every upload 00:04:33.980 --> 00:04:37.360 is time stamped there's no automated reminders 00:04:37.360 --> 00:04:41.600 for anything if the system goes down and your 00:04:41.600 --> 00:04:45.589 upload is late that's still your problem You 00:04:45.589 --> 00:04:48.230 have to document it and you have to defend why 00:04:48.230 --> 00:04:52.230 it was late One broadcast attorney put it really 00:04:52.230 --> 00:04:55.350 well. He said the date and timestamp on every 00:04:55.350 --> 00:04:59.069 upload is Well, essentially a built -in truth 00:04:59.069 --> 00:05:04.370 serum You cannot fudge when something was filed 00:05:04.370 --> 00:05:10.209 the record It's right there So let's talk about 00:05:10.209 --> 00:05:14.310 the political file This is the part of the public 00:05:14.310 --> 00:05:16.920 file that has produced the biggest enforcement 00:05:16.920 --> 00:05:19.920 actions in radio history. And I want to explain 00:05:19.920 --> 00:05:23.339 why. Because it's not just about keep records 00:05:23.339 --> 00:05:27.439 of political ads. It's a little more complicated 00:05:27.439 --> 00:05:32.879 than that. Under FCC rules, anytime a legally 00:05:32.879 --> 00:05:36.399 qualified candidate or anyone running an ad that 00:05:36.399 --> 00:05:39.540 touches on a political matter of national importance, 00:05:40.100 --> 00:05:43.600 who purchases time on your station, you have 00:05:43.600 --> 00:05:47.459 to document it. and not just document it, you 00:05:47.459 --> 00:05:50.779 have to upload it to the online public inspection 00:05:50.779 --> 00:05:54.939 file as soon as possible. The FCC's interpretation 00:05:54.939 --> 00:05:58.800 of that phrase is, well, within 24 hours or the 00:05:58.800 --> 00:06:02.439 next business day. And you don't just log the 00:06:02.439 --> 00:06:05.319 ad buy, you have to record who purchased it, 00:06:05.660 --> 00:06:09.399 what they paid, which rate class it was, which 00:06:09.399 --> 00:06:13.620 candidate or issues it references, and if it's 00:06:13.620 --> 00:06:17.930 a non - candidate, organization, a pact, an advocacy 00:06:17.930 --> 00:06:21.230 group, you need the names of their officers or 00:06:21.230 --> 00:06:26.670 board members. Then there's a category that catches 00:06:26.670 --> 00:06:31.029 people off guard, which is ads that relate to 00:06:31.029 --> 00:06:35.089 a political matter of national importance. The 00:06:35.089 --> 00:06:39.170 FCC expanded that definition in 2019 to essentially 00:06:39.170 --> 00:06:44.300 mean any widely debated national issue. Not just 00:06:44.300 --> 00:06:49.120 elections and add about gun policy about health 00:06:49.120 --> 00:06:53.620 care about Climate if it touches something being 00:06:53.620 --> 00:06:57.899 argued about at the national level it potentially 00:06:57.899 --> 00:07:04.600 triggers political file requirements David Oxenford 00:07:04.600 --> 00:07:09.100 who runs the broadcast law blog and is well one 00:07:09.100 --> 00:07:11.779 of the most read broadcast attorneys in the industry 00:07:12.089 --> 00:07:14.769 laid out a hypothetical a few years back about 00:07:14.769 --> 00:07:19.170 a shooting range. The ad is about local zoning. 00:07:20.389 --> 00:07:24.430 But is there a national gun issue underneath 00:07:24.430 --> 00:07:28.790 it? Does that pull it into the political file? 00:07:29.490 --> 00:07:34.490 His answer was, who knows? That's the state of 00:07:34.490 --> 00:07:39.449 the rule. Even experts are shrugging. And then 00:07:39.449 --> 00:07:44.529 there's the 2020 sweep. In July of that year, 00:07:44.829 --> 00:07:49.230 the FCC went after six of the biggest radio companies 00:07:49.230 --> 00:07:54.569 in the country all at once. iHeart, Cumulus, 00:07:55.089 --> 00:08:00.670 Intercom, Salem, Alpha, Beasley. Together, those 00:08:00.670 --> 00:08:04.829 groups covered somewhere between 1 ,800 and 1 00:08:04.829 --> 00:08:08.790 ,900 stations. All of them had political file 00:08:08.790 --> 00:08:12.920 problems. The FCC didn't actually find them. 00:08:13.300 --> 00:08:17.139 They cited the pandemic and the fact that the 00:08:17.139 --> 00:08:20.199 groups did come forward voluntarily, but the 00:08:20.199 --> 00:08:22.899 compliance plans, the designated officers, the 00:08:22.899 --> 00:08:25.939 multi -year reporting requirements, that's not 00:08:25.939 --> 00:08:32.940 nothing. That's a significant ongoing operational 00:08:32.940 --> 00:08:38.259 weight and requirement. And for companies that 00:08:38.590 --> 00:08:44.070 Didn't get the same grace. Cumulus paid $540 00:08:44.070 --> 00:08:49.490 ,000 in 2016 for a sponsorship ID failure on 00:08:49.490 --> 00:08:55.330 a single station in New Hampshire. Half a million 00:08:55.330 --> 00:09:00.210 dollars. One station. Ads that ran without proper 00:09:00.210 --> 00:09:06.009 identification. Town Square paid $500 ,000. in 00:09:06.009 --> 00:09:23.629 January of 2024 for KIDO and KLIX, two Idaho 00:09:23.629 --> 00:09:26.850 talk stations that aired what was essentially 00:09:26.850 --> 00:09:30.610 a paid political program from the state Republican 00:09:30.610 --> 00:09:34.389 party without disclosing that it was paid content. 00:09:35.440 --> 00:09:39.940 and without public file uploads. That violation 00:09:39.940 --> 00:09:43.279 ran from October 2021 through March of 2023, 00:09:43.559 --> 00:09:47.860 a year and a half. That complaint wasn't even 00:09:47.860 --> 00:09:51.139 from the FCC doing some random audit. It was 00:09:51.139 --> 00:09:53.340 triggered by a local news outlet that noticed 00:09:53.340 --> 00:09:57.100 the program and started asking questions. Which 00:09:57.100 --> 00:09:59.240 brings me back to the point about the public 00:09:59.240 --> 00:10:03.440 file being public. You're not just accountable 00:10:03.440 --> 00:10:06.679 to the FCC, you're accountable to anybody paying 00:10:06.679 --> 00:10:11.139 attention. If the political file is the most 00:10:11.139 --> 00:10:14.519 dangerous folder, the quarterly issues and programs 00:10:14.519 --> 00:10:19.240 list is the most consistently fined. Four times 00:10:19.240 --> 00:10:23.379 a year, January 10th, April 10th, July 10th, 00:10:23.539 --> 00:10:26.919 October 10th, every commercial and non -commercial 00:10:26.919 --> 00:10:29.460 station has to upload a narrative description 00:10:29.789 --> 00:10:32.570 of the most significant ways it addressed community 00:10:32.570 --> 00:10:36.250 issues during the prior quarter. What issues 00:10:36.250 --> 00:10:40.289 came up? What programs dealt with them? There's 00:10:40.289 --> 00:10:44.690 no form. There's no template. The FCC doesn't 00:10:44.690 --> 00:10:48.350 tell you how many issues to list, what formats 00:10:48.350 --> 00:10:53.509 to use, or what significant even means. There's 00:10:53.509 --> 00:10:58.210 an old pre -1980 rule that implied 5 to 10 issues 00:10:58.210 --> 00:11:02.289 per quarter. And most broadcast attorneys now 00:11:02.289 --> 00:11:06.830 use that as a safe, you know, soft, safe harbor. 00:11:07.570 --> 00:11:11.610 But the FCC has never formally said that's the 00:11:11.610 --> 00:11:16.049 standard. The issues list is probably the most 00:11:16.049 --> 00:11:19.429 fined public file item over the past decade, 00:11:19.730 --> 00:11:22.750 according to multiple broadcast law firms that 00:11:22.750 --> 00:11:26.769 track enforcement. And the reason is almost always 00:11:26.769 --> 00:11:32.740 the same. The station forgot. or was short -staffed 00:11:32.740 --> 00:11:36.179 or nobody had clear ownership of it and they 00:11:36.179 --> 00:11:41.600 missed a quarter or several quarters and then 00:11:41.600 --> 00:11:45.360 the license renewal came around they look at 00:11:45.360 --> 00:11:52.539 the file and there's gaps and here's what makes 00:11:52.539 --> 00:11:57.220 this worse when you file your license renewal 00:11:57.220 --> 00:12:02.710 you certify that your public file is complete. 00:12:03.929 --> 00:12:08.049 If it's not, and you certified that it is, that's 00:12:08.049 --> 00:12:12.970 a separate violation. The FCC can fine you for 00:12:12.970 --> 00:12:17.929 the missing list AND fine you for the false certification. 00:12:20.909 --> 00:12:24.870 A station in Virginia paid $15 ,000 and got a 00:12:24.870 --> 00:12:27.679 two -year short -term renewal because the owner, 00:12:27.799 --> 00:12:30.879 a 92 -year -old man, had never filed a quarterly 00:12:30.879 --> 00:12:35.740 issues list in the entire licensed term. The 00:12:35.740 --> 00:12:38.299 FCC's response to the age argument was that age 00:12:38.299 --> 00:12:41.759 was not an excuse for noncompliance, and that's 00:12:41.759 --> 00:12:46.419 a direct quote. A cluster of four stations in 00:12:46.419 --> 00:12:51.220 Washington state paid $46 ,000 total across the 00:12:51.220 --> 00:12:55.769 group and got four years rather than the 8 year 00:12:55.769 --> 00:12:58.289 renewals because they were missing between 12 00:12:58.289 --> 00:13:07.490 and 26 quarters of issues per station. The fix 00:13:07.490 --> 00:13:10.470 isn't complicated. You just have to actually 00:13:10.470 --> 00:13:13.789 do it every quarter within 10 days of the quarter 00:13:13.789 --> 00:13:17.289 ending. The content doesn't have to be elaborate. 00:13:17.870 --> 00:13:20.830 It needs to be honest and it needs to be specific 00:13:20.830 --> 00:13:24.129 enough to demonstrate that the station was thinking 00:13:24.129 --> 00:13:28.149 about its community. But it has to be there, 00:13:29.210 --> 00:13:35.429 and it has to be uploaded on time. None of the 00:13:35.429 --> 00:13:39.049 rules that I've described here are new. The issues 00:13:39.049 --> 00:13:41.669 list, obligation, that's been around since the 00:13:41.669 --> 00:13:46.470 early 1980s. The political file has existed in 00:13:46.470 --> 00:13:51.919 some form for decades. What changed in 2018 is 00:13:51.919 --> 00:13:55.379 that the compliance record it became permanent 00:13:55.379 --> 00:13:58.820 public and searchable by anyone on the internet 00:13:58.820 --> 00:14:03.899 You know the binder in the cabinet had a It sort 00:14:03.899 --> 00:14:08.080 of had a forgiveness You know built in but You 00:14:08.080 --> 00:14:10.840 know if a quarter get missed it might not come 00:14:10.840 --> 00:14:14.139 up until you know the renewal if a political 00:14:14.139 --> 00:14:17.480 ad get filed a day late Maybe nobody noticed 00:14:18.509 --> 00:14:23.350 That time is gone. The online file has turned 00:14:23.350 --> 00:14:28.230 routine paperwork into ongoing legal exposure. 00:14:29.330 --> 00:14:31.950 Not because the rules get harder, but because 00:14:31.950 --> 00:14:37.649 transparency got higher. If you work at a radio 00:14:37.649 --> 00:14:42.129 station in any capacity, you're the engineer, 00:14:42.570 --> 00:14:45.950 program director, general manager, ownership, 00:14:46.409 --> 00:14:48.889 and you don't know exactly what's in your public 00:14:48.889 --> 00:14:53.669 file, and when it was last updated, you should 00:14:53.669 --> 00:14:57.210 probably go check on that. Not because the FCC 00:14:57.210 --> 00:15:00.830 is knocking on your door tomorrow, but because 00:15:00.830 --> 00:15:04.529 the clock on the next license renewal is always 00:15:04.529 --> 00:15:09.490 ticking, and the timestamp on every upload is 00:15:09.490 --> 00:15:13.649 already on the record. That's it for this one. 00:15:14.139 --> 00:15:16.200 I'm Tyler Woodward, this is the Tyler Woodward 00:15:16.200 --> 00:15:18.679 Project. Follow me on Instagram, threads, and 00:15:18.679 --> 00:15:21.419 bluesky at tylerwoodward .me and you can find 00:15:21.419 --> 00:15:25.639 more at tylerwoodward .me. I'll catch you next 00:15:25.639 --> 00:15:25.840 week.