The license renewal cycle for radio stations is fast approaching, and to paraphrase Yogi Berra, for many broadcasters the familiar renewal process should be “déjà vu all over again.”  That said, broadcasters should take care to prepare their renewal applications to avoid common filing errors and should review their practices to help ensure that they can obtain renewal of their license through filing a complete and correct renewal application with the Federal Communications Commission – particularly in light of recent changes in the renewal application. 

The renewal cycle for radio stations begins on June 1, 2011 (the deadline for stations licensed to communities in Maryland, Virginia, West Virginia and the District of Columbia to file their renewal applications) and winds up on April 1, 2014 (the license renewal deadline for stations licensed to communities in Delaware and Pennsylvania).  Between these dates, radio stations licensed to the remaining U.S. states and territories will file their license renewal applications.  TV stations operate on a different renewal cycle. 

The FCC has released a new version of the license renewal application (Form 303-S), which licensees must use in this renewal cycle.  The revised Form 303-S includes a question on the FCC’s anti-discrimination policy and whether the broadcast station has been silent, as discussed below. 

What can we expect to see during this license renewal cycle?  

○          Renewed and vigorous review of a licensee’s EEO Public File Report obligations.  Licensees with five or more full time employees must prepare an EEO Public File Report on the anniversary of the date when the station would file its license renewal application.  The EEO Public File Report must be placed in the station’s local public inspection file and must be posted on the web site for the station, if one exists.  When the broadcaster files the renewal application for the station with the FCC, the broadcaster must also file the station’s two most recent EEO Public File Reports.  The FCC has stepped up enforcement in this area, recently fining two radio stations for incomplete EEO Public File Reports.  Additional enforcement action is expected in the future. 

○          Fines for filing late or incomplete renewal applications.  The FCC fined broadcasters during the last renewal cycle for late filed or incomplete renewal applications.  Expect to see the FCC continue that trend, with little-to-no tolerance for broadcasters who submit incomplete renewal applications. 

○          Review of whether the station complies with the FCC’s non-discriminatory policy regarding sales contracts.  Licensees will be required to certify in the renewal application that the station’s advertising sales agreements do not discriminate on the basis of race or ethnicity and that all such agreements include nondiscrimination clauses.  Because of uncertainty regarding what language must be included in a sales agreement to satisfy this requirement, broadcasters should review their sales policy carefully. 

○          Was the station silent during the license term?  The renewal application requires licensees to certify that the station has not been silent (or operating with reduced power) for more than 30 days.  If the licensee cannot make this certification, the licensee must submit an exhibit listing the exact dates during the preceding license term when the station was silent or operating with reduced power. 

○          Enforcement Bureau hold on the renewal application.  The FCC generally defers processing renewal applications if the Enforcement Bureau has put a hold on processing the application.  The most common reason that the Enforcement Bureau would put a hold on a renewal application is because of a pending indecency complaint against the station. The FCC has not yet granted renewal applications for a small number of radio stations from the last renewal cycle because of indecency complaints. 

○          Timing of assignment applications.  The FCC will not grant an assignment or transfer application for a station while the renewal application for the station remains pending before the FCC. It is important that broadcasters plan the sale or transfer or a broadcast license to avoid overlapping with the renewal application. 

During the last renewal cycle, the FCC issued some hefty fines to broadcasters for common and avoidable filing mistakes:

○          Failure to file the license renewal application in a timely manner.  License renewal applications must be filed four months before the broadcast license expires.  For example, if a broadcast license expires on October 1, 2011, the renewal application must be filed before June 1, 2011.  During the last renewal cycle, some broadcasters waited to file their renewal application until just before the license expiration date.  Worse, others did not file until after their license had expired! 

○          Failure to file the license renewal application electronically.  A licensee must file their renewal application with the FCC electronically.  The FCC will not accept filings submitted on paper. 

○          Failure to pay the filing fee in a timely manner.  Commercial licensees must pay the filing fee for a renewal application within 14 days of submission of the application.  The FCC must receive payment by the 14th day.  Several times during the last cycle, licensees timely submitted their license renewal application only to forget to pay the filing fee. 

○          Failure to request special temporary authority to continue broadcasting.  If a licensee does not file their renewal application before the license expires, the broadcaster no longer has FCC authority to broadcast its signal.  The broadcaster must file with the FCC a request for special temporary authority for the station to continue broadcasting. 

○          Make sure the station local public inspection file is complete.  The renewal application requires broadcasters to certify the station’s local public inspection file is complete and documents timely placed in the file.  The most common documents missing from the local public file during the last renewal cycle were the station’s quarterly issues/programs lists.

            The FCC may have streamlined its license renewal process over the years, but the obligations of broadcasters to serve their community remain.  Now is the time for broadcasters to make sure their station is ready for the new license renewal cycle.  Review your local public inspection file and make sure it is complete and accurate.  Know when you must file your license renewal application.  Above all, be diligent and treat the license renewal application with the importance it deserves.