ADVOCACY

Protecting Local Radio from Harmful New Fees

Congress once again rejects the record labels' performance fee money grab.

In August 2022, NAB reached its goal of having a majority of the House of Representatives (218) cosponsor the Local Radio Freedom Act (LRFA), a resolution that opposes a performance tax and recognizes the critical role local radio plays in every community. In the Senate, the cosponsor list stands at 28 for the LRFA Senate companion.

• In September, the Senate version of the American Music Fairness Act (AMFA), legislation promoted by the big record labels to impose a performance tax on local radio, was introduced (the House version of AMFA had been introduced in June 2021).
  
• Radio stations across the country delivered strong grassroots opposition to the AMFA by airing spots that activated listeners to reach out to members of Congress in defense of local radio, resulting in more than 75,000 emails and over 15,000 tweets to lawmakers.
  
• "It is frustrating for broadcasters that there continues to be no willingness on the part of the recording industry to come to the table and work to resolve this issue. Numerous times, and as recently as a few weeks ago, the record labels have refused to meet to discuss a mutual path forward. Rather than even attempting productive conversations, the record labels seem to prefer a continued stalemate. If the record labels are truly serious about advancing the ball – and have the best interests of artists at heart – we invite them to join us at the negotiating table, instead of continuing to reject broadcasters' good-faith efforts out of hand," said NAB President and CEO Curtis LeGeyt in anticipation of the House Judiciary Committee considering the AMFA as part of a lame-duck show process in December.
  
• During the markup, although the AMFA passed out of the House Judiciary Committee, Ranking Member Jim Jordan (OH-04) noted that the bill had no chance of being passed during the 117th Congress and consistent with that sentiment, multiple committee members pushed for a consensus solution rather than a one-sided solution as embodied in the AMFA.

Why It Matters

Grassroots and congressional support of the LRFA once again demonstrated that local radio is a vital source of news, entertainment and emergency information for communities.

Defending Journalism in the Age of Big Tech

Broadcasters work with congressional champions to defend local journalism.

Broadcasters rallied around the bipartisan Journalism Competition and Preservation Act (JCPA), introduced by Sens. Amy Klobuchar (MN) and John Kennedy (LA) and Reps. David Cicilline (RI-01) and Ken Buck (CO-04).

NAB is grateful for these legislators' efforts to promote and strengthen this bipartisan bill that would allow broadcasters and other news publishers to jointly negotiate with dominant digital platforms regarding the terms and conditions by which their content may be accessed online.

• In February, Joel Oxley, senior vice president and general manager of WTOP-FM, WTOP.com and FederalNewsNetwork.com (all owned by Hubbard Broadcasting), testified on this issue before the Senate Judiciary Committee's Subcommittee on Competition Policy, Antitrust and Consumer Rights.
  
• In September, the Senate Judiciary Committee passed the JCPA with bipartisan support.
  
• Despite a major push that nearly secured the JCPA in end-of-the-year defense authorization legislation, neither the JCPA nor other major legislation fighting against Big Tech made it into the fiscal 2023 omnibus spending bill (the other end-of-the-year potential legislative vehicle).
• While short of enactment, there is no doubt that broadcasters built capital with key policymakers, which will help with future efforts against the dominant online platforms.

Why it Matters:

This legislation represents a targeted, practical solution to the dangers Big Tech's dominance presents to local journalism.

Passing the Low Power Protection Act

Vital interference protection coming for low-power stations.

In December, the NAB-supported Low Power Protection Act passed both the Senate and the House of Representatives, and was signed into law by President Biden on January 6. This legislation will provide an opportunity for low power television stations operating in the smallest markets (markets 189 and smaller) to be eligible for Class A status and ensure their continued service into the future.

• NAB thanks Sens. Blunt and Wyden for their bipartisan leadership on this bill, which will provide eligible low power television stations a long-overdue opportunity to obtain interference protections.
  

Why it Matters:

This legislation enables innovation and local investment for the low power television stations that serve the millions of Americans living in small and rural markets.

Supporting Local Journalism

NAB builds support for investing in stronger newsrooms.

NAB continued to strongly support legislation to establish tax incentives providing much-needed relief for local newsrooms. This tax credit was derived from a bill, the Local Journalism Sustainability Act (LJSA), introduced by Sens. Maria Cantwell (WA), chair of the Senate Commerce Committee, Ron Wyden (OR), chair of the Senate Finance Committee, and Mark Kelly (AZ).

• This legislation would create a tax credit available for broadcasters and certain print and digital publications for the hiring and retention of up to 1,500 local news journalists each year over five years.
• NAB looks forward to working with stakeholders and members of Congress on passing this legislation into law.

Why it Matters:

Providing a tax credit for the hiring and retention of local news journalists would help stabilize local newsrooms during a time when these local outlets are facing the economic impact of advertising dollars going to massive technology platforms.

Ensuring Fair Regulation of Cannabis Advertising

Broadcasters fight for equal treatment as other platforms.

In 2022, the House passed legislation that included a provision prohibiting the FCC from punishing broadcasters who accept cannabis advertising for medicinal or adult recreational use in states where cannabis use has been legalized.

• Although this provision was not included in the final appropriations package, separate Senate legislation was introduced by Sen. Ben Ray Luján (NM) that would permanently prevent the FCC from taking administrative action against broadcasters that accept cannabis advertisements consistent with the law of the state or jurisdiction in which the station is licensed.
  
• NAB appreciates these steps toward regulatory certainty for broadcasters and will continue to work with policymakers for a permanent resolution to this competitive disparity.

Why it matters:

For too long, local broadcasters have been stuck in regulatory purgatory because of conflicting federal and state cannabis laws. Broadcasters should receive the equal treatment for cannabis advertising that many other forms of media have enjoyed for years.

Fighting Unfairly High Regulatory Fees: FCC Slashes 13% Rate Hike

NAB successfully pushed back on ridiculously high fees.

Due to NAB's aggressive advocacy on this issue, the FCC's proposed 13% increase in broadcast regulatory fees for Fiscal Year 2022 was cut almost in half, saving stations approximately $2.3 million from the original proposal.

• In response to the FCC's Fiscal Year 2022 Regulatory Fees Report and Order NAB President and CEO Curtis LeGeyt said, "We hope the Notice of Inquiry serves as a springboard to a thorough modernization of the FCC's regulatory fee methodology to ensure all parties that utilize and benefit from the Commission's work pay their fair and appropriate share. It is no longer good enough to tinker around the edges."
• In August, 94 members of Congress, led by Rep. Tom Emmer (MN-6), signed on to a letter to the FCC expressing serious concerns with the FCC's Fiscal Year 2022 regulatory fee proposal.
  
• In September, Sen. Joe Manchin (WV) similarly sent a letter to the FCC expressing concern about the "significantly increased regulatory fees" for broadcasters in Fiscal Year 2022.

Why it Matters:

Overly burdensome regulatory fees jeopardize local broadcasters' ability to provide local news, emergency information and community service to millions of Americans.

NAB Opposes Zonecasting Proposal

Broadcasters' opposition causes policymakers to express concern to FCC.

NAB continued to raise serious concerns about GeoBroadcast Solutions' (GBS) proposal urging the FCC to allow FM broadcasters to use proprietary GBS's FM booster system design ("ZoneCasting") to location target different programming to different parts of their service areas.

• In 2021, NAB filed comments strongly opposing the proposal, explaining that permitting the geotargeting of ads would depress ad rates and revenues and that using GBS's system would disproportionately advantage larger radio station groups, given the substantial investment needed to capture additional ad business enabled by geotargeting.
• In 2022, in response to an FCC inquiry, NAB filed additional comments demonstrating that GBS's testing to date is inadequate and that granting GBS's request would increase the risk of interference on the FM band and potentially affect the reputation of FM radio service for clear, reliable service.
• In fall 2022, GBS's claims that ZoneCasting will benefit small and minority-owned stations were severely undercut by the withdrawal of comments previously filed in support of ZoneCasting by an appreciable number of small broadcasters.
• In October, Sens. Richard Blumenthal (CT) and Ben Cardin (MD) sent a letter to the FCC pushing back on the ZoneCasting proposal currently in front of the Commission, saying the proposal "would upend the FCC's broadcast licensing regime, impose additional costs on broadcasters, harm local media and undermine efforts to support an informed public connected to their community."
• NAB's engagement resulted in multiple other letters from members of Congress to FCC Chairwoman Jessica Rosenworcel expressing concern about GBS's technology and/or asking for the FCC not to adopt its proposal, including a letter from Reps. Yvette D. Clarke (NY-09) and Darren Soto (FL-09), as well as a letter spearheaded by Rep. Jeff Duncan (SC-03) and signed by 12 other members of the House Commerce Committee.
• The FCC has not taken any further action in this proceeding.

Why it Matters

ZoneCasting threatens local radio stations' ability to provide emergency news and information, their financial viability and signal quality and will result in the inequitable treatment of listeners.

Addressing the Foreign Sponsorship Identification Rule

NAB secures major victory in federal court.

In July, in response to NAB's advocacy, a federal court vacated the requirement that radio and TV broadcasters search federal government databases for information on entities leasing airtime to comply with the foreign sponsor ID rule. The court agreed with an NAB petition that the FCC lacked authority to adopt the requirement.

• Stations are still required to tell programmers leasing airtime about the rule, ask them about foreign sponsorship and disclose any foreign government-sponsored programming to the public.
  
• The rules went into effect on March 15, 2022, and the deadline to comply was September 15, 2022.
  
• The FCC proposed additional foreign sponsorship identification rules in October 2022. NAB and other broadcasters are engaging with the FCC to ensure that any additional rules adopted comport with the Communications Act and other laws.
  

Why it Matters:

The decision removes a significant burden on radio and television stations while continuing to ensure the transparency of broadcasters' support in program sponsorship.

NAB State Leadership Conference: Broadcasters Gather in the Nation's Capital

Broadcasters take their unified message straight to policymakers.

Hundreds of local broadcasters from across the nation gathered in Washington, D.C., for NAB's annual State Leadership Conference in February to learn about the policies impacting the broadcast industry and to advocate on key legislative and regulatory issues.

Highlights included:

• Remarks by Rep. Doris Matsui (CA-06), Rep. Steve Womack (AR-03) and Sen. Amy Klobuchar (MN).
  
• A conversation between Major Garrett, chief Washington correspondent, CBS News, and Jordan Wertlieb, president, Hearst Television, and immediate past joint board chair of NAB.
• NAB presented Sen. Roy Blunt (MO) with its Broadcast Champion Award in recognition of his support of local broadcasting during his time in Congress.

Why it Matters:

"Our competitive advantage, and the reason that we continue to win issue after issue of importance to the broadcast industry, is all of you," said NAB President and CEO Curtis LeGeyt during his remarks at the event. "When members of Congress are home, and now in Washington, D.C., you deliver the message that this is not just some abstract piece of legislation; it is one that impacts their constituents."